Tesla shareholders have overwhelmingly approved a historic compensation package for CEO Elon Musk, potentially worth $1 trillion. The vote took place at the company's Texas factory, where more than 75% of shares were cast in favor of the deal. As shareholders chanted his name, Musk celebrated by performing a few dance moves alongside a humanoid robot, expressing his gratitude by saying, "I super appreciate it."

If Musk meets the ambitious goals outlined in the package, he could gain control of about 25% of Tesla and significantly increase the company's market value. The deal has drawn attention not only for its size but also because it positions Musk to potentially become the world's first trillionaire within the next decade.

A trillion dollars is a staggering figure, equating to $1,000 billion. To put it in perspective, if someone wanted to spend $1 trillion in a year, they would need to spend over $19 billion each week. Musk's current net worth recently reached $500 billion, making him the richest person in the world.

The shareholder meeting featured a lively atmosphere, with attendees wearing cowboy hats and enjoying techno music. Tesla Chair Robyn Denholm urged shareholders to support the pay package to ensure Musk's long-term commitment to the company. In addition to Musk's compensation, shareholders voted on several governance proposals, including a measure to require annual re-elections for directors.

Musk's pay package is tied to ambitious milestones, including increasing Tesla's market capitalization from $1 trillion to $8.5 trillion by 2035. He must also oversee the production of one million robotaxis and one million AI bots. If successful, Musk would receive over 423 million Tesla shares, which could be worth $1 trillion if the company meets its valuation target.

Despite the approval, some major investors expressed concerns about the size of the compensation package. Norway's sovereign wealth fund, Tesla's sixth-largest outside investor, announced it would vote against the deal, citing worries about dilution and the lack of risk mitigation. Proxy advisory firms ISS and Glass Lewis also recommended rejecting the package.

Musk has indicated that he may leave Tesla if the compensation deal is not approved, raising concerns among investors about the potential impact on the company's stock price. Analysts note that Musk's leadership is closely tied to Tesla's value, and his departure could lead to a decline in share prices.

The vote comes amid challenges for Tesla, including a reported 13.5% decline in U.S. sales this year. However, sales increased by 7.4% in the September quarter, partly due to the expiration of a $7,500 electric vehicle credit. As Tesla navigates these hurdles, the approval of Musk's pay package marks a significant moment in the company's history.