Shareholders approve: Tesla to pay Musk $1 trillion

Electric vehicle giant Tesla held its annual shareholder meeting in Austin, Texas, USA. The meeting included a vote on various proposals, including the 2025 CEO Performance Award.

More than 75 percent of shareholders voted in favor of a proposal to pay CEO Elon Musk nearly $1 trillion.

He needs to meet his goals

Tesla's Board of Directors sent a letter to shareholders in September outlining a payout offer if Musk delivers "extraordinary" financial returns and remains in a leadership role at Tesla for years to come.

The letter outlined the goals Elon Musk must meet to receive the full payment, including expanding Tesla's fledgling robotaxi business and increasing the company's market capitalization by $7.5 trillion. The letter also stated that Musk must remain with the company for 7.5 to 10 years to receive the full performance reward.

If Tesla's market capitalization reaches $8.5 trillion, Musk is expected to receive approximately 12% of the company's shares, making the payment worth approximately $1 trillion.

THE RICHEST PERSON IN THE WORLD

Elon Musk, the owner of Tesla and SpaceX and the world's richest person, became the first person to reach $500 billion in wealth. Following Musk on the Forbes list were Oracle founder Larry Ellison and Meta founder Mark Zuckerberg. Musk's fortune surpassed $100 billion in August 2020 and he became the world's richest person for the first time in January 2021, with a fortune of approximately $190 billion.