Tesla offers unprecedented $1 trillion pay package to Musk

Tesla offers unprecedented $1 trillion pay package to Musk

Tesla Inc. has proposed an unprecedented long-term compensation package for its Chief Executive Officer, Elon Musk, which could be valued at approximately $1 trillion. The proposal, announced on Friday, includes a series of ambitious performance milestones that Musk must achieve to unlock the compensation [1].

The proposed package, which would be one of the largest executive pay arrangements in corporate history, is designed to retain Musk as CEO over the next decade. Key milestones include expanding Tesla’s emerging robotaxi business, increasing the company’s market value to at least $8.5 trillion, and delivering 20 million vehicles annually [2]. Musk must also remain as CEO for a minimum of seven and a half years to receive any stock awards and a full decade to earn the entire package [3].

Under the terms of the proposal, Musk could receive additional Tesla shares that would elevate his stake in the company to at least 25%. This is a significant increase from his current 13% stake, valued at around $139 billion [1]. The filing also outlines an interim stock award granted in early August, valued at around $30 billion [4].

The incentives in the proposed plan are intended to ensure Musk remains focused on Tesla amid the company’s expansion into new areas, including robotics and artificial intelligence. Additionally, the filing includes a non-binding shareholder proposal suggesting that Tesla take an equity stake in Musk’s xAI startup [4].

Tesla shares closed at $350.84 on September 5, up 3.64% on the day, before falling slightly in after-hours trading to $349.40. The stock’s recent performance reflects investor attention on both the proposed compensation plan and Tesla’s broader growth strategy in the electric vehicle and emerging technology sectors [4].

References:
[1] https://www.facebook.com/taramxoxo/videos/elon-musk-could-become-first-trillionaire-under-tesla-pay-package-elon-musk-coul/1941036003362953/
[2] https://www.ibtimes.sg/tesla-board-proposes-1-trillion-pay-package-that-could-make-elon-musk-first-trillionaire-81508
[3] https://www.indexbox.io/blog/elon-musks-1-trillion-tesla-pay-package/
[4] https://nairametrics.com/2025/09/06/elon-musk-to-get-1-trillion-compensation-package-as-tesla-ceo/