Tesla Proposes Unprecedented $1 Trillion Pay Package for Elon Musk
Palo Alto, Friday, 5 September 2025.
Tesla’s new compensation plan could make Elon Musk the first trillionaire, contingent on achieving ambitious milestones, including expanding Tesla’s market value to $8.5 trillion.
Massive Pay Package Details
Tesla Inc. (NASDAQ: TSLA) has unveiled a compensation package for CEO Elon Musk valued at approximately $1 trillion, a scale unprecedented in corporate history. This package is structured to award Musk 423.7 million Tesla shares if the company achieves certain ambitious milestones, including expanding its market valuation to $8.5 trillion from the current $1.1 trillion [1][2][3].
Ambitious Milestones
The compensation plan is divided into 12 tranches, each contingent on Tesla meeting specific market capitalization and operational targets. These benchmarks include delivering 20 million vehicles, activating 10 million Full Self-Driving subscriptions, rolling out one million robotaxis, and achieving adjusted EBITDA targets [2][3]. This strategic plan spans a decade, aiming to transform Tesla into an artificial intelligence and robotics powerhouse [3][4].
Shareholder Vote and xAI Investment
Tesla’s board has called for a shareholder vote on November 6, 2025, to approve this pay package. Additionally, shareholders will decide on a proposed $5 billion investment into Musk’s artificial intelligence company, xAI, which recently merged with his social network X. This move is part of Tesla’s broader strategy to diversify and strengthen its technological capabilities [2][3].
Impact on Tesla’s Market Strategy
The proposed pay package underscores Musk’s pivotal role in Tesla’s future growth, highlighting the company’s reliance on his leadership and vision. Analysts suggest that retaining Musk is crucial to Tesla’s plans, especially as it faces increasing competition from Chinese EV manufacturers like BYD and companies leading in robotaxi services, such as Waymo [1][4]. According to Tesla’s special committee, the plan is designed to incentivize Musk to focus on Tesla’s growth, warning that without such incentives, he might pursue other interests [1][2].