Tesla has unveiled a groundbreaking compensation plan for CEO Elon Musk, potentially worth up to $1 trillion over the next decade.
If fully realized, the package could make Musk the world’s first trillionaire. The proposal, which is subject to shareholder approval in a vote scheduled for November 6, 2025, ties Musk’s payout to a series of extremely ambitious performance milestones.
Under the plan, Musk could receive approximately 423 million Tesla shares, valued at around $143 billion today, but only if Tesla hits aggressive targets.
The company aims to increase its market capitalization from $1.1 trillion to $8.5 trillion, deliver 20 million vehicles annually, deploy 1 million robotaxis and 1 million humanoid robots, and achieve up to $400 billion in adjusted EBITDA.
The stock awards would vest over periods extending to 2032 and 2035, with mandatory holding periods and claw back provisions if Tesla’s stock falls significantly.
Tesla’s board says the package is designed to incentivize Musk to lead the company through a critical phase of expansion, particularly as it accelerates in AI and robotics.
The plan also follows a Delaware court’s 2023 rejection of Musk’s 2018 pay package, which was deemed unfair to shareholders; Tesla is appealing that decision, with oral arguments set for October.
Despite recent challenges, including a 13% drop in vehicle deliveries and some stock underperformance, the board remains confident in Musk’s ability to drive Tesla’s long-term growth.
