Tesla shareholders have voted overwhelmingly in favor of a massive pay package for CEO Elon Musk, which could potentially reach $1 trillion. The package, designed to ensure Musk’s continued leadership at the company, received over 75% support from shareholders at Tesla’s annual meeting.

The pay package aims to keep Musk at the helm of Tesla for at least seven and a half years, during which time the company plans to pursue breakthroughs in artificial intelligence and robotics. The package would increase Musk’s stake in Tesla from around 12% to potentially over 25%. Musk has stated that Tesla’s growth potential is vast, predicting that the company will become the most valuable in the world if it delivers on its vision for autonomous driving and AI.

Tesla Chair Robin Denholm argued that retaining Musk is crucial to the company’s future, warning that his departure could lead to a decline in the company’s stock price. The board has dismissed concerns that Musk’s association with contentious political figures has negatively impacted sales.

The vote result has been met with criticism from some quarters, with activist group Tesla Takedown describing the package as a “participation trophy” for Musk, citing the company’s recent decline in auto sales. However, analyst Dan Ives believes that the vote cements Musk’s position and gives greater confidence in Tesla’s future as the AI revolution takes hold.

Musk, already the world’s richest person with a net worth of over $500 billion, must meet 12 milestones related to market capitalization to receive the full pay package. The first tranche would be available when Tesla reaches a market value of $2 trillion, up from its current $1.5 trillion. The plan also involves operating profit and product goals, such as the delivery of 20 million Tesla vehicles.

The pay proposal had been criticized by proxy advisory firms Glass Lewis and Institutional Shareholder Services, which questioned the rationale for the potential windfall and the lack of explicit requirements for Musk to remain focused on Tesla. Despite this, the vote result demonstrates the strong support Musk enjoys among Tesla’s shareholders, who have consistently backed his pay packages in the past. The outcome is likely to have significant implications for Tesla’s future direction and growth prospects.