Tesla Puts Forward a $1 Trillion Pay Plan for Musk If He Supercharges Growth

Tesla’s board has proposed an extraordinary compensation package for CEO Elon Musk, potentially valued at nearly $1 trillion, the largest ever put forward for a corporate executive. The plan extends over a ten-year period and would be awarded in 12 phased tranches, each contingent on the company achieving remarkably ambitious market, financial, and operational milestones.

To unlock the full value of the package, Tesla must grow its market capitalization from approximately $1 trillion today to between $8.5 trillion and $8.6 trillion, requiring an astounding $7.5 trillion increase. Operational objectives include delivering 20 million vehicles, putting 1 million robotaxis into commercial service, rolling out 1 million humanoid robots, securing 10 million Full Self-Driving subscriptions, and reaching $400 billion in adjusted EBITDA. Under the most aggressive scenario, Musk’s stake in Tesla could rise to approximately 25–29%, significantly boosting his voting power.

Importantly, the compensation is entirely performance-based: there’s no salary or cash bonus, only equity tied to results. The proposal also addresses concerns about Musk’s high-profile political involvement by requiring a timely reduction of such outside engagements to ensure his focus remains on Tesla. A special committee of independent directors reviewed the plan ahead of its scheduled shareholder vote in November.

The backdrop includes legal uncertainty: a Delaware court previously nullified Musk’s $56 billion pay package from 2018, and Tesla is actively appealing that decision. This new proposal reflects the board’s belief that Musk’s visionary leadership is essential as the company pivots toward AI, robotics, and sustainable energy amid growing global competition, particularly from Chinese rivals.

Sources: Reuters, The Times, New York Post, The Guardian