Tesla Proposes $1 Trillion Pay Package for Musk
Tesla’s board has proposed a new pay package for CEO Elon Musk that could reach $1 trillion over the next decade. The package would grant Musk up to 12% of Tesla’s stock, tied strictly to performance targets.
Conditions and Milestones
To receive the payout, Musk must meet a series of ambitious goals:
- Tesla must achieve a valuation rising from $2 trillion to $8.5 trillion
- Production of 20 million vehicles must be reached
- Deployment of 1 million Optimus humanoid robots and 1 million robotaxis
- Growth of the Full Self-Driving (FSD) subscription base to 10 million users
Musk is also required to remain with Tesla for 7.5 years to unlock the first tranche and for the full 10 years to secure the complete package.
Governance and Shareholder Decision
The board argues the package is necessary to retain Musk as Tesla expands deeper into AI and robotics. Shareholders will vote on the proposal at Tesla’s annual meeting in November 2025.
Context and Scale
This plan eclipses Musk’s 2018 compensation agreement, which was eventually voided by a court ruling. The new proposal highlights Tesla’s determination to keep Musk focused on long-term growth.
