Tesla shareholders have endorsed an unprecedented compensation package for chief executive Elon Musk that could ultimately be worth nearly $1 trillion, despite mounting concerns over the billionaire’s inflammatory political interventions and the electric vehicle manufacturer’s deteriorating European sales performance.
The extraordinary pay deal secured approval from 75% of voting shareholders at the company’s annual meeting in Austin, Texas on Thursday, November 6. The package represents the largest executive compensation arrangement in corporate history, dwarfing conventional pay structures and drawing sharp criticism from governance experts and major institutional investors.
Under the approved plan, Musk stands to receive up to 423 million shares over the next decade, potentially worth $878 billion net after accounting for the initial value of the stock. The total gross value could reach $1 trillion, though Musk would need to either pay this amount in cash or accept fewer shares reflecting their initial value.
Musk must also deliver on substantial operational goals: producing 20 million vehicles, deploying one million robotaxis commercially, selling one million Optimus humanoid robots, securing 10 million full self-driving subscriptions, and achieving core profits of up to $400 billion.
“What we’re about to embark upon is not just a new chapter for Tesla’s future, but an entirely new book,” Musk told the cheering audience after the vote results were announced. “Other shareholder meetings are snoozefests, ours are bangers. I mean, look at this. This is sick”.
The compensation package would increase Musk’s voting stake from approximately 13-15.3% to as much as 29% if all milestones are achieved. Musk has repeatedly stated that this enhanced control is essential for his comfort level in developing Tesla’s artificial intelligence and robotics initiatives.
Opposition from Major Investors and Proxy Advisers
Despite the overwhelming shareholder approval, significant opposition emerged from institutional investors and corporate governance specialists. Norway’s sovereign wealth fund—the world’s largest at $2 trillion and Tesla’s sixth-largest outside investor with a 1.14% stake valued at approximately $11.6 billion—announced it would vote against the package.
Controversial xAI Investment Proposal
Shareholders also voted on a non-binding advisory proposal to invest in xAI, Musk’s artificial intelligence startup founded in July 2023 to compete with OpenAI. The proposal received more votes in favour than against, though a substantial number of shareholders abstained.
xAI, which develops the Grok chatbot integrated into X and Tesla vehicles, reached a $50 billion valuation in 2024 after raising more than $12 billion. Some shareholders expressed concern about potential conflicts of interest, pointing to Tesla’s controversial 2016 acquisition of SolarCity – a company founded by Musk’s cousin – for $2.6 billion in stock whilst it was experiencing a debt crisis.
European Sales Collapse and Brand Damage
The compensation vote comes against a backdrop of severe sales difficulties in Europe, Tesla’s third-largest market. Data from Germany’s federal transport authority revealed the company sold just 750 vehicles in October 2025 – a 53.5% decline from the 1,607 units sold in October 2024. Year-to-date sales in Germany have fallen 50.4% to 15,595 units, marking the lowest monthly performance since May 2022.
Tesla’s struggles extend across the European market, with UK registrations halving to just 495 units in October compared to 1,013 the previous year. The decline occurred despite the launch of more affordable “Standard” versions of the Model Y and Model 3 in Europe during October.
Tesla’s sales challenges coincide with mounting reputational damage stemming from Musk’s increasingly controversial political interventions, particularly regarding the United Kingdom. The billionaire has engaged in sustained attacks on British political leaders and institutions throughout 2024 and 2025, drawing condemnation from government officials across party lines.
During the far-right riots that erupted across England and Northern Ireland in August 2024 following the Southport stabbings, Musk posted to his 211 million X followers that “civil war is inevitable” in the UK. He repeatedly shared misinformation about the violence and expressed apparent support for rioters, describing British efforts to limit incitement on social media as akin to Soviet practices.
Just days before the Tesla shareholder vote, Musk sparked fresh outrage by comparing British people to “Hobbits” during an appearance on Joe Rogan’s podcast. “Charming small towns in England, Scotland, and Ireland have been quietly going about their lives. They resemble Hobbits, to be honest,” Musk stated, referencing J.R.R. Tolkien’s The Lord of the Rings.
During the same podcast appearance, Musk spread unsubstantiated claims about violence in the UK, stating: “One day, 1,000 individuals arrive in your village of 500 and begin assaulting children. This has happened; who knows how many times in Britain”. No credible evidence exists to support this assertion.
Scottish First Minister John Swinney described Musk as a “malign influence” on UK politics and condemned his comments as “reprehensible” and “baseless”. “The social media platform that Elon Musk owns is essentially being used as a platform for the fermenting of hate within our society,” Swinney said in August 2024. The Scottish Government subsequently stopped advertising on X and indicated it was considering ceasing use of the platform entirely.
What Comes Next?
The compensation structure ensures Musk will remain tied to Tesla for at least a decade as he pursues the ambitious targets. Whether they can be achieved whilst navigating political controversies, competitive pressures, and brand rehabilitation efforts remains Tesla’s central challenge as it embarks on what Musk characterised as “an entirely new book” in the company’s history.
