Tesla Inc. shareholders have overwhelmingly approved a historic compensation package for Chief Executive Officer Elon Musk, a deal that could award the billionaire as much as $1 trillion by 2025 if the company achieves a series of ambitious performance milestones.

More than 75% of shareholders voted in favor of the plan, according to preliminary results released shortly before 5 p.m. Eastern time on Thursday. The outcome underscores strong investor confidence in Musk’s leadership and Tesla’s long-term growth trajectory, despite ongoing scrutiny of the company’s valuation and Musk’s management style.

The approval cements what would be the largest compensation deal in corporate history, linking Musk’s potential earnings to Tesla’s ability to meet aggressive targets for market capitalization, revenue, and profitability. The plan’s structure, similar to Musk’s 2018 pay package, ties payouts entirely to performance — meaning Musk receives no salary or cash bonuses unless the company achieves specific financial and operational milestones.

Following the shareholder vote, Tesla’s stock rose 1.7% in after-hours trading, reaching $453.25 per share, reflecting renewed optimism about the company’s direction under Musk’s continued leadership. Analysts said the market reaction signals confidence in Tesla’s capacity to sustain momentum across its electric vehicle, energy, and AI ventures.

The board of directors praised the decision, describing the plan as a “bold reaffirmation” of Tesla’s vision and Musk’s pivotal role in executing it. “This vote sends a clear message that shareholders believe in Elon’s ability to deliver extraordinary value,” the board said in a statement.

Musk, who holds a significant equity stake in Tesla, has previously argued that tying his compensation to performance ensures alignment with shareholder interests. The potential $1 trillion payout would depend on Tesla reaching unprecedented levels of valuation and profitability — benchmarks that, if met, could redefine executive compensation standards across corporate America.

With this latest vote, Tesla’s shareholders have effectively doubled down on the leadership of one of the most influential — and polarizing — figures in modern business, betting that Musk’s relentless drive will continue to push the company, and the broader electric vehicle industry, into uncharted territory.