What you need to know
Tesla shareholders just approved a pay package that will make Elon Musk the world’s first billionaire.
According to CNBC and Business Insider, on Thursday, October 6, 75% of Tesla shareholders voted to approve a more than $1 trillion compensation plan for Tesla’s CEO, 54.
Musk will not automatically receive a salary, as the package requires him to meet a number of the auto company’s business goals. Business Insider reports that he will require Tesla to increase its market capitalization to $8.5 trillion by 2035, sell 12 million cars a year, and deploy 1 million robotaxis and 1 million humanoid robots.
According to the pay agreement, the current billionaire would have to remain Tesla’s CEO for seven and a half years to earn equity from his new pay package. He will still be allowed to continue in his role as CEO at other companies, including SpaceX and his artificial intelligence startup xAI, according to NBC News.
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After announcing the new pay structure, Musk celebrated his win by dancing with robots on stage at Tesla’s shareholder meeting in Austin, Texas, according to NBC News.
“I’m very grateful. Thank you everyone,” Owner X said on stage. “What we are embarking on now is not just a new chapter about the future of Tesla, but a whole new book.”
Musk already has a net worth of about $461 billion, making him the world’s richest person, according to the Bloomberg Billionaires Index.
Musk’s new pay plan comes after months of discussion in the public sphere and among Tesla shareholders. According to a report by NBC News, Norway’s sovereign wealth fund claimed that Musk’s new stake in the company would reduce its existing stake.
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“While we appreciate the tremendous value created under Mr. Musk’s visionary role, we are concerned about the total compensation, dilution, and lack of risk mitigation for key personnel, consistent with our views on executive compensation,” Norges Bank Investment Management, the fund’s manager, said in a statement, according to NBC News.
Musk’s wealth has increased over the past year, despite controversy surrounding his political positions and his job leading the Office of Government Efficiency in President Donald Trump’s administration. In early 2025, protesters gathered outside a Tesla showroom to voice their opposition to federal budget cuts and right-wing political stances.
Musk and other Tesla executives have spoken openly about plans to develop robots that can act as domestic servants or self-driving robotaxis, but neither product is yet available to the public.
