Tesla Proposes Record $1 Trillion Pay Package for Elon Musk
Tesla’s board has unveiled a bold new pay plan that could see Elon Musk earn up to $1 trillion — provided he meets a series of highly ambitious performance targets.
The package would grant Musk up to 12% of Tesla’s total stock in stages, as the company achieves milestones in market value, profitability, and operations. The board argues the plan is essential to keep Musk at the helm and motivated to deliver Tesla’s long-term vision.
Board members Robyn Denholm and Kathleen Wilson-Thompson emphasised Musk’s importance to the company’s future:
“We believe that Elon’s singular vision is vital to navigating this critical inflection point. Simply put, retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history.”
To unlock the maximum payout, Tesla’s market capitalization would need to surge from around $1 trillion today to $8.5 trillion — roughly equal to the combined value of Meta, Microsoft, and Alphabet.
Performance milestones tied to the award also include:
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Delivering 20 million vehicles
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Selling 10 million active Full Self-Driving (FSD) subscriptions
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Producing 1 million AI robots
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Launching 1 million Robotaxis into commercial service
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Generating $400 billion in adjusted EBITDA
The board says these targets align with Tesla’s mission to “democratize autonomous goods and services” by delivering innovative, affordable technology at scale.
Urging shareholders to support the plan, Denholm and Wilson-Thompson concluded:
“If Elon achieves all the performance milestones under this principle-based 2025 CEO Performance Award, his leadership will propel Tesla to become the most valuable company in history.”
