Investor Support for Elon Musk’s Massive Tesla Pay Package Drops Compared to 2018

Tesla shareholders have approved another colossal compensation package for CEO Elon Musk — one that could be worth up to $1 trillion in stock over the next decade. But investor enthusiasm is clearly lower than it was in 2018, when Musk received his previous record-breaking pay plan.

According to a filing released Friday, 66.9% of shares voted in favor of the package — down from 73% in 2018, excluding board members and executives. The decline highlights a growing division among the company’s investor base.

The reduced support comes during a turbulent period for Tesla. Sales have fallen sharply in the first half of the year, the company’s brand value has weakened, and Musk’s increasingly inflammatory political rhetoric — along with his close involvement in the Trump administration — has complicated the automaker’s public standing.

Still, many investors remain convinced that Tesla and Musk are “inseparably linked.” Andrew Droste, head of corporate governance at Columbia Threadneedle, argues that despite waning enthusiasm, the vote still demonstrates “broad support for Elon among Tesla shareholders.”

The newly approved package includes 12 tranches of stock that Musk will receive only if the company meets an aggressive list of performance targets over the next decade. The first tranche unlocks if Tesla reaches a $2 trillion market cap, roughly $500 billion above current levels. A set of more modest goals could still earn Musk over $50 billion even without hitting the highest milestones.

However, major proxy advisory firms Glass Lewis and ISS urged shareholders to vote against the plan, calling it excessive and insufficiently tied to operational performance. The package also includes several “covered events” that could allow Musk to obtain shares without meeting key targets.

The vote underscores a complex reality: while investor support has weakened, Musk’s influence over Tesla remains overwhelmingly dominant.