Tesla Proposes $1 Trillion Musk Pay Package Over Decade

Tesla's board proposes a pay package for Elon Musk worth up to $1 trillion over 10 years. The package includes various share-based awards tied to Tesla hitting specific milestones. Musk, already the world's wealthiest individual, could see his compensation significantly increase if the package is approved by investors.

Tesla Inc. has proposed a new compensation agreement for Chief Executive Officer Elon Musk that could be valued at approximately $1 trillion over a 10-year period. The plan, which aims to incentivize Musk to lead Tesla for years to come, sets a series of ambitious benchmarks he must meet to earn the full payout, including expanding Tesla’s robotaxi business and growing the company’s market value to at least $8.5 trillion from around $1 trillion today [1].

The additional shares Musk could receive would push his stake in the electric-vehicle maker to at least 25%, according to the terms detailed in Tesla’s proxy filing [1]. The plan includes 12 tranches of shares to be granted if Tesla hits certain milestones over the next decade. To obtain the first award in the plan, Musk and Tesla would need to almost double their current market cap to reach $2 trillion, while also hitting a production and deliveries milestone of a cumulative 20 million vehicles [3].

The new agreement underscores Musk’s iron grip on the automaker, despite the myriad demands on his time. Musk, who has served as Tesla’s top executive since 2008, oversees four other companies: SpaceX, xAI, Neuralink, and the Boring Co. [1]. The plan dangles a financial windfall and expanded control of the company to Musk, already the world’s richest person, after his 2018 package valued in excess of $50 billion was struck down by a Delaware court [1].

The incentives in the new plan aim to keep Musk’s focus on Tesla while it pursues growth in newer markets including robotics and artificial intelligence. The plan also includes a non-binding shareholder proposal for Tesla to take a stake in Musk’s xAI startup [1].

Tesla’s shares have declined 16% this year through Thursday [1]. The company’s board said the package was developed after a seven-month review by a special committee tasked with evaluating the company’s long-term strategic ambitions [4].

References:
[1] https://www.bloomberg.com/news/articles/2025-09-05/tsla-tesla-offers-unprecedented-1-trillion-pay-package-to-elon-musk
[2] https://news.bloomberglaw.com/esg/tesla-offers-unprecedented-1-trillion-pay-package-to-elon-musk
[3] https://www.cnbc.com/2025/09/05/tesla-musk-pay.html
[4] https://eletric-vehicles.com/tesla/tesla-ties-musks-new-pay-package-to-7-5-trillion-market-cap/