KEY POINTS
- Tesla shareholders approve historic $1 trillion package — 75% of investors backed Musk's performance-based pay deal, the largest executive plan in history
- The full award only materialises if Tesla hits an $8.5 trillion market valuation and specific production and profitability milestones
Tesla shareholders have officially approved a staggering $1 trillion (£820 billion) compensation package for CEO Elon Musk, making it the largest executive payout in corporate history. The vote, which passed with 75% in favour, was held at the company's annual meeting in Austin, Texas.
Under the terms of the plan, Musk will receive up to 12% of Tesla's stock, contingent upon the company reaching a market capitalisation of $8.5 trillion (£7 trillion) and achieving performance milestones over the next decade.
The board, led by Chair Robyn Denholm, defended the record sum by arguing that retaining Musk was essential to Tesla's innovation and expansion into artificial intelligence, robotics, and autonomous technology. Denholm warned shareholders that without approval, Tesla risked losing 'his time, talent, and vision' to his other ventures.
The Scale of a Trillion
The sheer size of the deal is almost beyond comprehension. If spent at a rate of $40 (£32) per second, it would take over 790 years to exhaust a trillion dollars. A trillion also dwarfs many national economies — it exceeds the GDP of Switzerland, which stands at around $900 billion (£738 billion), and is equivalent to roughly 2.5% of the total US GDP.
To visualise it in corporate terms: with that level of capital, Musk could purchase every car sold in the United States in a year, or acquire global corporations like Coca-Cola, Toyota, and Royal Caribbean multiple times over. It would also buy 333 JPMorgan Chase skyscrapers or 2,000 luxury yachts, each worth millions.
Could Musk Truly 'Buy Half the World'?
In practical terms — economically, yes. With $1 trillion (£820 billion) at his disposal, Musk could acquire or control corporations operating across more than half of the world's major economies. For instance, he could purchase the combined market capitalisations of Toyota, Volkswagen, Hyundai, Ford, and General Motors, effectively dominating the global automotive sector.
Beyond transport, that sum could buy energy giants such as ExxonMobil, Chevron,and ConocoPhillips, or even household brands like Coca-Cola, Nestlé, and Unilever — companies that supply goods and services to billions worldwide. Collectively, these firms represent industries spanning dozens of nations, from the Americas to Europe, Asia, and the Middle East.
By this measure, Musk could influence economic ecosystems that account for half the world's active markets — a level of financial power no single person has ever approached in modern history. His potential purchasing power extends from energy to technology, transport to consumer goods, symbolising the profound shift toward wealth consolidation in the digital age.
The Era of Exponential Wealth
The vote also signals a wider cultural and economic phenomenon: the acceptance of extreme executive compensation as a vehicle for innovation. Yet critics, including Norges Bank Investment Management, have cautioned against the precedent such a package sets for governance and corporate ethics, citing concerns over 'key person risk' and 'lack of mitigation'.
Still, Tesla's shareholder enthusiasm underscores confidence in Musk's ability to transform the company into a dominant player in autonomous transport and AI manufacturing. Whether or not those ambitions materialise, one fact is clear: Musk's financial footprint could soon rival that of small nations.
In that sense, the question is less whether he could buy half the world — and more how much of it he already influences.
