Tesla shareholders have approved CEO Elon Musk’s nearly $1 trillion pay package, with about 75 per cent voting in favour.

The company’s board had urged investors to back the plan, first introduced in September, though top proxy advisors Glass Lewis and ISS advised against it.

The results were announced Thursday during Tesla’s annual shareholders meeting in Austin, Texas.

Tesla’s general counsel, Brandon Ehrhart, said the motion received more votes in favour than against, though some abstained, and the company is reviewing its next steps.

Musk’s compensation plan, one of the largest in corporate history, grants him 12 tranches of stock if Tesla meets specific market capitalization and operational milestones over the next decade.

The award would boost his ownership from about 13 per cent to 25 per cent, adding over 423 million shares.

The first payout would occur if Tesla’s market value reaches $2 trillion, up from its current $1.54 trillion.

Additional tranches would vest as the company’s market cap increases by $500 billion increments up to $6.5 trillion, and by $1 trillion increments for the final two tranches, requiring Tesla to hit $8.5 trillion for Musk to receive the full package.

Tesla also outlined several earnings targets for Musk under the new compensation plan, starting with $50 billion in annual adjusted profit and scaling up to $400 billion.

For comparison, the company reported $4.2 billion in adjusted EBITDA in the third quarter.

Additional performance goals include achieving 20 million vehicle deliveries, securing 10 million active Full Self-Driving subscriptions, delivering 1 million Optimus humanoid robots, and deploying 1 million robotaxis in commercial service. As of September, Tesla had delivered more than 8 million vehicles, according to its proxy statement.