WASHINGTON DC:  Tesla CEO Elon Musk has secured a historic pay package that could be worth nearly $1 trillion (£760 billion) after shareholders approved the plan with 75% of the votes at the company’s annual general meeting on Thursday.

The announcement drew loud applause from attendees at the Austin, Texas, event. The unprecedented compensation plan ties Musk’s rewards to a decade-long performance, requiring him to increase Tesla’s market value from $1.4 trillion to $8.5 trillion and achieve other ambitious targets, including putting one million self-driving Robotaxi vehicles into commercial operation.If these goals are met, Musk would be rewarded with hundreds of millions of new shares.

Following the announcement, Musk appeared on stage, danced to chants of his name, and said, “What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.”

He also highlighted the Optimus robot project, signaling a potential shift in focus from Tesla’s core electric vehicle business, which has drawn concern from some analysts.

Tesla faces scrutiny over its Full Self-Driving (FSD) technology, which U.S. regulators are investigating after incidents of cars running red lights or driving on the wrong side of the road.

Shares of the company rose slightly in after-hours trading and have increased more than 62% over the last six months.

While Musk’s pay package has drawn criticism, Tesla’s board defended it, arguing that losing Musk would be a greater risk to the company.

Several major institutional investors, including Norway’s sovereign wealth fund and the California Public Employees’ Retirement System (CalPERS), opposed the plan, leaving retail investors to carry significant influence.

Analysts remain divided: Ross Gerber of Gerber Kawasaki warned that Musk’s persona and focus on non-core ventures like humanoid robots could affect the company’s performance, while Wedbush Securities’ Dan Ives called Musk “Tesla’s biggest asset,” highlighting potential AI-driven valuation gains.

Musk already owns 13% of Tesla, and previous pay packages tied to performance had been rejected by a Delaware judge over concerns about board conflicts. The Delaware Supreme Court is now reviewing that case.