Tesla has submitted a new compensation proposal for CEO Elon Musk, one that could see him become the first trillionaire if the company achieves a series of aggressive targets over the next decade. The plan, detailed in a regulatory filing on Friday, sets out performance milestones spanning vehicle production, market valuation, and new technology ventures.
A Decade-Long Deal
The proposed package, included in the company’s proxy statement ahead of the shareholder meeting in November, is structured across 12 tranches of stock awards. To unlock them, Tesla must simultaneously achieve steep financial and operational benchmarks. Among the requirements: delivering 20 million vehicles annually, reaching a market capitalization of at least $8.5 trillion, deploying one million robotaxis, and producing one million of its Optimus robots.
The scale of these targets reflects Tesla’s ambitions to move far beyond electric cars into autonomous driving, robotics, and artificial intelligence. In 2024, Tesla delivered fewer than 2 million vehicles, and no robotaxis or Optimus robots.
Leadership and Voting Power
The compensation plan is designed not just as a financial incentive but also as a mechanism to secure Musk’s leadership. If all milestones are achieved, Musk’s Tesla holdings would expand his voting power to around 25%, something he has publicly stated he wants to maintain to drive long-term strategy.
Musk must remain at Tesla for at least 7½ years to claim any shares and for the full 10 years to access the maximum payout. The agreement also requires him to help the board establish a CEO succession framework, particularly tied to the final tranches of the award.
From Billions to Trillions
At today’s valuation, the package is worth about $87.8 billion, but if Tesla hits its ambitious goals, it could balloon to roughly $1 trillion. Combined with Musk’s existing stake and previous awards, his Tesla holdings could be valued at $2.5 trillion by the end of the plan.
The plan would dwarf even Musk’s controversial 2018 pay deal, once valued at around $55 billion, which was later struck down in court over concerns about board independence. That earlier case is under appeal, with arguments set for October.
Investors Will Vote
Shareholders will get their say on the new package at Tesla’s annual meeting scheduled for November 6. The board argues the award is essential to keep Musk’s focus on Tesla during what it describes as a pivotal period of growth.
Tesla shares are up nearly 3% in morning trading following the announcement.
You can read Tesla’s full proxy statement at this link.
