In a landmark decision, Tesla shareholders have overwhelmingly approved CEO Elon Musk’s record-breaking pay package, valued at up to $1 trillion, reaffirming their confidence in his ambitious plans to propel the company beyond electric vehicles and into the era of artificial intelligence and robotics.

The vote, held during Tesla’s annual meeting in Austin, Texas, drew a festival-like crowd, featuring dancing robots, cheering investors, and a visibly energized Musk. The event underscored Tesla’s transition from a carmaker to what Musk calls an “AI and robotics juggernaut.”

Musk Secures Record-Breaking Compensation

Over 75% of Tesla shareholders voted in favour of Musk’s massive pay package, potentially granting him as much as $1 trillion in Tesla stock over the next decade. This approval not only solidifies Musk’s position as the world’s wealthiest individual but also gives him the financial strength to accelerate his futuristic projects.

Dressed in a Tesla jacket, Musk addressed the ecstatic crowd, declaring, “It’s not just a new chapter for Tesla, it’s a new book.” He added, “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.”

Tesla’s Shift from EVs to AI and Robotics

During the meeting, Musk emphasised that Tesla’s next phase will extend far beyond electric cars. His vision includes self-driving vehicles, a nationwide robotaxi network, and humanoid robots designed for everyday human tasks.

He described Tesla as an emerging global AI leader, asserting that the company’s greatest potential lies in shaping the next industrial revolution through artificial intelligence and real-world robotics.

Shareholders Dismiss Short-Term Concerns

Despite challenges such as slowing EV sales, rising competition from China, and criticism of Musk’s political statements, shareholders voted overwhelmingly in his favour. The decision highlights investors’ belief that Musk’s long-term innovation strategy outweighs current market turbulence or brand controversies.

The strong backing reflects confidence that Tesla’s future dominance will be defined not just by its cars, but by its AI-driven ecosystem.

Legal Disputes and Board Reforms

The approval also brought closure to a major legal hurdle. A Delaware court had previously blocked Musk’s earlier $56 billion pay deal, forcing Tesla to rework the plan. With the new proposal now passed, shareholders also voted to re-elect three directors and transition to annual board elections, signaling a push for increased transparency and corporate accountability.

Tesla to Collaborate with Musk’s AI Startup, xAI

In a significant development, shareholders also approved Tesla’s investment in Musk’s AI startup, xAI, though a portion abstained. The collaboration is expected to boost Tesla’s neural network and real-world data systems, advancing its progress in robotics and autonomous technology.

Musk has reiterated that AI and robotics—not cars—will define Tesla’s ultimate legacy. As the meeting drew to a close, Musk summed up the electric atmosphere by saying, “Other shareholder meetings are like snoozefests, but ours are bangers. I mean, look at this. This is sick.”

The historic decision cements Musk’s role not only as Tesla’s visionary leader but as the architect of a future where AI, robotics, and human innovation converge under one revolutionary brand.