Shareholders of American electric vehicle maker Tesla have approved a historic pay package for the company’s CEO Elon Musk. The approval could make him the world’s first trillionaire if Tesla meets its ambitious financial goals.

Tesla’s annual shareholder meeting was held on Thursday. At the meeting, more than 75 percent of shareholders voted in favor of Musk’s stock-based compensation plan. After the announcement of the results, the hall was filled with excitement and joy.

“I’m very grateful for this support,” Musk said after the vote, thanking shareholders and Tesla’s board of directors. Unlike many CEOs, Musk’s earnings are based entirely on the company’s stock options, which do not take a monthly salary or bonus. Under the new package, if Tesla achieves a market value of $8.5 trillion, it will receive 423.7 million Tesla shares over the next decade — equivalent to about $1 trillion.

To meet this target, Tesla’s share price would need to rise about 466% from current levels, which would put the company above Nvidia, which is currently the world’s highest-valuation. Nvidia is currently valued at about $50 trillion.

If Musk were to receive all 12 tranches of the stock award, his average daily income would be about $275 million. It will be considered the largest executive pay deal in history.

Tesla’s board had warned shareholders that Musk could walk away from the company if the plan was rejected. In regulatory documents, the board said it was concerned that Musk would have to continue as CEO without the control and long-term incentives he would be given.

However, even with this historic acknowledgement, Tesla is facing a challenging year. CNN reported that 2025 was the result of sluggish demand for electric vehicles, intensifying competition and the U.S. government’s lack of incentives for electric vehicles.

Analysts say the pay package is expected to keep Musk tied to Tesla in the long term, but the company’s future will still depend on market trends, technological innovation and global economic stability.