Tesla investors approve $1tn for Musk

The win gives Elon Musk a clear, albeit challenging, path to becoming the world's first trillionaire

- KARA CARLSON DANA HULL TOM MALONEY

Elon Musk, Tesla's chief executive, had threatened to leave the company if shareholders rejected the pay plan.

Tesla Inc shareholders approved a $1 trillion compensation package for Chief Executive Officer Elon Musk, the largest payout ever awarded to a corporate leader.

More than 75% of the votes cast were in favour of the unprecedented pay plan, the company said Thursday at its annual meeting. The outcome caps a weekslong campaign by the electric vehicle maker's board, its CEO and prominent retail investors to build support.

The pay agreement clears a path for Musk, the world's richest person, to become the first-ever trillionaire and expand his stake in Tesla to 25% or more over the next decade. To achieve the full payout, he'll have to deliver on targets to significantly expand Tesla's market value, revive its flagging car business and get the fledgling robotaxi and Optimus robotics efforts off the ground.

"It's not just a new chapter for Tesla, it's a new book," Mr Musk said at the shareholder meeting, wearing a black Tesla jacket as he strode the stage in front of a cheering crowd. "And that new book is massively increasing vehicle production and ramping up Optimus production faster than anything's ever been ramped up before in human history."

The compensation vote was pivotal for Tesla, after Mr Musk suggested he could step down or spend more time with his other companies if he didn't get greater control over the carmaker. He's now likely to remain at the helm as Tesla pursues an ambitious agenda built around driverless vehicles and artificial intelligence.

Tesla shares rose less than 1% as of 7:16 pm in postmarket trading Thursday in New York, paring an earlier gain of as much as 3.4%. The stock was up 10% this year through Thursday's close, narrowly trailing the 14% advance in the S&P 500 Index.

Mr Musk teased several lofty goals as the company looks to 2026 and beyond.