Elon Musk's Proposed Pay Package Could Make Him a Trillionaire, Adding to His Net Worth of Nearly $400 Billion

Tesla CEO Elon Musk's proposed pay package could grant him nearly $1 trillion in shares if he meets performance milestones. Musk, the richest person in the world with a current net worth of $378 billion, has 19.7% of Tesla's equity. The pay package would be valued at nearly $1 trillion if Tesla achieves certain valuation and operations milestones over 10 years. Musk's wealth is largely driven by his stakes in Tesla and SpaceX.

Tesla Inc. (TSLA.O) has proposed an unprecedented compensation package for its CEO, Elon Musk, which could potentially grant him nearly $1 trillion in shares if certain performance milestones are met over the next decade. The proposal, detailed in a recent regulatory filing, underscores Musk's significant influence over the electric vehicle (EV) manufacturer as it transitions into an AI and robotics powerhouse [1].

According to the filing, the proposed package would grant Musk up to 12% of Tesla's stock, valued at approximately $1.03 trillion if Tesla achieves its target market value of $8.6 trillion. This would require a nearly eightfold increase in Tesla's valuation, or about $7.5 trillion, over the next decade. Musk would receive no salary or cash bonus under the proposal, with the compensation tied to stock awards that vest only if Tesla meets both market cap and operational targets, such as selling millions of EVs, deploying robotaxis, and delivering AI-powered humanoid robots [1].

Musk's current net worth is approximately $378 billion, making him the richest person in the world. He currently owns about 19.7% of Tesla's equity. The new compensation plan is part of Tesla's broader strategy to pivot to an AI-first strategy and solidify Musk's role as the company's leader through at least 2030. The company's shares were up about 2% in premarket trading following the announcement [1].

The proposed compensation package is subject to shareholder approval at Tesla's annual meeting on Nov. 6. Additionally, shareholders will vote on whether Tesla should invest in Musk's artificial intelligence startup, xAI, which Musk founded in 2023 [1].

The proposal has sparked debate over governance and succession at Tesla, as it would materially increase Musk's voting power and influence over the company. Tesla's board earlier this year approved an interim compensation package for Musk worth about $29 billion in restricted stock, designed to keep him at the helm through at least 2030 [1].

References:
[1] https://www.reuters.com/business/autos-transportation/tesla-award-musk-an-unparalleled-1-trillion-depending-performance-2025-09-05/
[2] https://www.washingtonexaminer.com/news/business/3794781/tesla-elon-musk-one-trillion-pay-package/
[3] https://www.washingtonpost.com/technology/2025/09/05/musk-tesla-pay-trillion/
[4] https://www.investopedia.com/elon-musk-proposed-usd1-trillion-pay-package-net-worth-11804164