Tesla shares rise 3.5% after new Musk $1 trillion compensation plan linked to stiff targets

Tesla shares rise 3.5% after new Musk $1 trillion compensation plan linked to stiff targets

September 02, 2025 - Tesla Inc. (TSLA) shares surged 3.5% to $345.40 in premarket trading on September 2, following the announcement of a new compensation plan for CEO Elon Musk, which could potentially be worth up to $1 trillion [1].

The compensation package, proposed by Tesla's board, includes a series of ambitious targets that Musk must achieve over the next decade to earn the full payout. These targets include growing Tesla's market capitalization from approximately $1.1 trillion to an unprecedented $8.5 trillion, expanding the company's autonomous systems, and delivering 20 million vehicles, 1 million Optimus robots, and 1 million robotaxis [2][3].

The proposed compensation plan is a significant departure from Musk's previous agreement, which was struck down by a Delaware court in 2022. The new plan aims to incentivize Musk to remain at the helm of Tesla and drive the company towards becoming the world's most valuable entity [2].

Tesla's board has also requested shareholders to vote for the proposal at the annual meeting on November 6. The new compensation package underscores Musk's influence over the company and highlights his commitment to leading Tesla for years to come, despite his involvement in other ventures such as SpaceX, xAI, Neuralink, and the Boring Company [2].

The stock has been volatile this year, falling 16% year-to-date, but the new compensation plan has sparked optimism among investors. The proposal, if approved, would raise Musk's Tesla stake from 13% to approximately 25%, further consolidating his control over the company [3].

References:
[1] Reuters. (2025). Tesla rises after new Musk $1 trillion compensation plan linked to stiff targets. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3US0Q5:0-tesla-rises-after-new-musk-1-trillion-compensation-plan-linked-to-stiff-targets/
[2] Yahoo Finance. (2025). Tesla offers unprecedented $1 trillion compensation plan to Elon Musk. Retrieved from https://finance.yahoo.com/news/tesla-offers-unprecedented-1-trillion-111941243.html
[3] Tesla Rati. (2025). Elon Musk's 2025 performance award could make him the world's first trillionaire. Retrieved from https://www.teslarati.com/elon-musk-2025-performance-award-trillionaire-tesla-worlds-most-valuable-company/