Quick overview

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Tesla received shareholder approval for Elon Musk’s $1 trillion compensation package, marking the largest payout ever awarded to a corporate leader.

The stock has risen by 10% so far this year, trailing behind the S&P 500 Index, which has gained 14%. As the company looks ahead to 2026 and beyond, Elon Musk hinted at several ambitious goals. Despite working with reputable suppliers like Samsung and TSMC, the CEO, who has led the electric vehicle manufacturer since 2008, suggested that Tesla might need to build its own chip factory to achieve the necessary production volume.

At the company’s annual meeting on Thursday, over 75% of the votes cast supported this unprecedented pay plan. This outcome followed a week-long effort by Musk, the board, and prominent retail investors to rally support for the initiative.

The compensation deal positions Musk, currently the richest person in the world, to potentially become the first trillionaire and increase his ownership of Tesla to at least 25% over the next ten years. However, to receive the full payout, he must achieve significant goals, including boosting Tesla’s market value, revitalizing its struggling automobile business, and launching the emerging robotaxi and Optimus robotics initiatives.

Musk stated, “It’s not just a new chapter for Tesla; it’s a new book,” as he confidently took the stage in front of an enthusiastic audience during the shareholder meeting..

Musk remarked, “Even when we extrapolate the best-case scenario for chip production from our suppliers, it’s still not enough.” Consequently, he believes that a Tesla terafactory may be necessary, as it would be significantly larger than a Gigafactory.

Musk indicated that the focus for the coming year will be on the Optimus robot, the semi-truck, and the Cybercab. He anticipates that Cybercab production will largely align with receiving regulatory approval. He added, “I want to express my gratitude to Waymo for making this possible. It’s really beneficial.”