Elon Musk could become a trillion dollars richer. Tesla shareholders voted in favor of an unprecedented compensation plan for the world's richest person. But only under certain conditions.

Tesla CEO Elon Musk is in line for a massive stock package worth one trillion dollars. More than 75 percent of shareholders voted in favor of the compensation plan, under which the electric car manufacturer must meet various targets for Musk to receive the shares.

Musk had threatened to resign as CEO of Tesla if the package was not approved. While the plan's passage was not guaranteed, it was expected, as Musk was entitled to full voting rights for his approximately 15 percent stake.

Among others, two influential consulting firms that provide recommendations to shareholders spoke out against it. There was also resistance from some large investors, such as the Norwegian sovereign wealth fund. Chairwoman Robyn Denholm emphasized that Musk would receive nothing if Tesla failed to meet its targets.

Market capitalization as a condition

The tech billionaire himself said that more than the money, he was interested in increasing his stake in Tesla to 25 percent and thus securing his influence in the company. In total, Musk could acquire up to 423.74 million Tesla shares, which corresponds to up to twelve percent of the company's shares.

This is to be done in twelve stages, mostly linked to increments of $500 billion in market capitalization. The package could be worth around one trillion dollars (equivalent to 871 billion euros) – at least if the automaker's market capitalization reaches $8.5 trillion in ten years. That would be almost six times its current value.

With such a surge in value, the value of Musk's existing shares would also break the trillion-dollar mark. The 54-year-old is already the world's richest person, with an estimated net worth of more than $470 billion. Tesla's stock rose by more than three percent in after-hours trading.

Further requirements

Other requirements for receiving the shares include that Musk remains in the CEO position for ten years, and that Tesla has one million robotaxis in operation and delivers one million AI robots.

Added to this are the business goals, such as delivering 20 million Teslas with a market capitalization of two trillion dollars. An even greater hurdle could be later on, in addition to a market capitalization of 6.5 trillion dollars, breaking the 400 billion dollar mark in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and staying above it.

Shareholders also re-elected three directors of the board of directors and voted in favor of a replacement compensation plan, as a previous package is blocked due to a lawsuit.

Future vision of AI and robotics

Tesla – the electric car pioneer that a few years ago prompted the industry to embark on an expensive catch-up race – seems to have lost its luster and is heading for its second year of declining sales. Musk's far-right political rhetoric has also damaged the Tesla brand this year.