Tesla $Tesla(TSLA.US) shareholders approved Elon Musk's $878 billion compensation package in a landmark vote—the largest executive pay deal in history.

Tesla $Tesla(TSLA.US) shareholders overwhelmingly approved CEO Elon Musk's $878 billion compensation package at the 2025 annual shareholder meeting, with over 75% of shareholders voting in favor—the largest executive pay deal in the company's history.

The package replaces Musk's 2018 plan, which was rejected by a Delaware court. Shareholders also approved funding for the replacement plan and the 2024 executive compensation package. Three directors were re-elected: Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson.

Shareholders made a controversial decision to authorize the board to invest in Musk's AI startup xAI, but a significant number of abstentions indicated concerns about potential conflicts of interest between Tesla's AI ambitions and Musk's parallel ventures.

Shareholders rejected four corporate governance proposals: linking executive pay to sustainability and human capital metrics, abolishing the 3% ownership rule for derivative lawsuits, and requiring shareholder approval for certain corporate bylaw changes under Texas law.

Despite skepticism over Musk's simultaneous management of Tesla, SpaceX, X (formerly Twitter), and xAI, the vote affirmed his leadership. The compensation package ties bonuses to highly challenging performance targets, betting that Musk can deliver returns substantial enough to justify the unprecedented payout.

The approval comes as Tesla faces intensifying competition in electric vehicles, pursues ambitious autonomous driving goals, and grapples with questions about the CEO's focus across multiple multibillion-dollar businesses.