Tesla Proposes $1 Trillion Pay Plan for CEO Elon Musk

Tesla proposes a new compensation package for Elon Musk potentially worth $1 trillion. To collect the full amount, Tesla's market cap must reach $8.5 trillion and certain operational milestones must be achieved. The package aims to retain Musk, who has threatened to leave the company unless assurances were made. The plan includes market-cap and operational milestones, with the last target being $8.5 trillion in market cap and 1 million robotaxis in commercial operation.

Tesla has proposed a new compensation package for CEO Elon Musk that could potentially make him the world's first trillionaire. The 10-year plan, to be voted on by shareholders at an annual meeting on November 6, is reported to be the largest in corporate history [1].

The proposed package, worth up to $1 trillion, would give Musk additional shares if he meets a series of ambitious targets. These targets include boosting Tesla's market valuation from about $1 trillion to more than $8 trillion and expanding the company's robotaxi operations, among others [1].

To collect the full amount, Tesla's market cap must reach $8.5 trillion, and certain operational milestones must be achieved. These milestones include delivering 20 million vehicles, obtaining 10 million active FSD subscriptions, delivering 1 million robots, and having 1 million robotaxis in commercial operation [1].

Musk, currently the world's richest person, is seeking assurances to remain focused on Tesla. He has threatened to leave the company unless such assurances are made. The new agreement underscores Musk's iron grip on the automaker, despite the myriad demands on his time [2].

The new pay plan comes after a Delaware court ruled last year that Musk's 2018 pay plan was excessive and improperly granted by the Tesla board. The 2018 plan was worth about $56 billion when it vested and was the largest public executive compensation plan in U.S. history [1].

Tesla shares rose 1.9% this morning following the announcement. However, the stock has fallen 16% this year due to various challenges, including a multi-quarter sales slump and competition from Chinese automakers [1].

The proposed package aims to retain Musk, who has been dividing his attention across his other ventures, including SpaceX, Neuralink, and the Boring Company. Tesla's board believes that the new plan will keep Musk motivated and focused on delivering for the company [1].

References:
[1] https://www.cnbc.com/2025/09/05/tesla-musk-pay.html
[2] https://www.entrepreneur.com/business-news/tesla-offers-elon-musk-record-1-trillion-pay-package/496761