New York: Tesla shareholders have approved a record-breaking pay package for chief executive Elon Musk that could make him the world’s first trillionaire if the electric carmaker meets ambitious growth targets, CNN reported.

At Tesla’s annual shareholder meeting on Thursday, more than 75 per cent of investors voted in favour of Musk’s stock-based compensation plan, excluding the 15 per cent stake he already owns. The announcement was met with cheers and chants from the crowd.

“I super appreciate it,” Musk told shareholders after the vote, thanking them and Tesla’s board for their support, according to CNN.

Unlike most chief executives, Musk does not take a salary. His compensation comes entirely through stock options, and the new package could grant him up to 423.7 million Tesla shares over the next decade — a potential payout worth around USD 1 trillion if the company reaches a market value of USD 8.5 trillion.

That target would require Tesla’s share price to rise by 466 per cent from its current level, making it more valuable than Nvidia, the world’s largest company with a market capitalisation of about USD 5 trillion.

If Musk were to receive all 12 tranches of the award, the total earnings would equate to around USD 275 million per day — the largest executive pay deal ever recorded.

Tesla’s board had warned shareholders that rejecting the pay plan could prompt Musk to leave the company. In a regulatory filing, the board said Musk had “raised concerns about continuing as CEO without greater assurances of control” that the pay package could provide.

Despite the approval, Tesla faces a challenging year. Sales and profits have fallen sharply in 2025 amid slower demand for electric vehicles and reduced US government incentives, CNN reported.