Tesla board details Musk compensation talks in proxy filing
ByAinvest
Friday, Sep 5, 2025 7:42 am ET1min read
Tesla board details Musk compensation talks in proxy filing
Tesla Inc. has proposed a groundbreaking compensation package for Chief Executive Officer Elon Musk, potentially valued at approximately $1 trillion. The proposal, aimed at incentivizing Musk to lead Tesla for the next decade, sets ambitious targets such as expanding the company's robotaxi business and increasing its market value to at least $8.5 trillion from the current $1 trillion [1].The new agreement, which includes a series of benchmarks Musk must meet to earn the full payout, would push his stake in Tesla to at least 25%, according to the terms detailed in Tesla's proxy filing on Friday. This plan comes as Tesla appeals a Delaware court's decision to strike down Musk's 2018 package valued at over $50 billion [1].
The proposal also includes a non-binding shareholder proposal for Tesla to take a stake in Musk's xAI startup, an idea Musk has previously discussed. The plan underscores Musk's continued influence over the automaker despite his involvement with other ventures such as SpaceX, xAI, Neuralink, and the Boring Co. [1].
Tesla's board has been proactive in ensuring Musk's focus remains on Tesla's growth, particularly in newer markets like robotics and artificial intelligence. The company's shares have declined 16% this year through Thursday, but the proposal received positive market reaction, with shares rising 2% in premarket trading following the news [2].
The proxy filing also seeks investor approval for Musk's 2025 compensation package and an authorization for Tesla to invest in Musk's xAI startup. The board's aim is to keep Musk at the helm through at least 2030 as Tesla pivots to an AI-first strategy [2].
References:
[1] https://www.bloomberg.com/news/articles/2025-09-05/tsla-tesla-offers-unprecedented-1-trillion-pay-package-to-elon-musk
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3US0PK:0-tesla-urges-investors-to-vote-in-favor-of-ceo-elon-musk-s-compensation-package/
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