Tesla’s Board Proposes Up to $1 Trillion Pay Package for Elon Musk
In September 2025 Tesla’s board unveiled an unprecedented CEO compensation proposal that could be worth up to about $1 trillion if the company achieves extremely ambitious targets over the next decade. The plan is performance-based and conditioned on market-cap, production and product milestones — and a long-term commitment from Elon Musk.
Key facts
- Maximum payout: Up to ~$1 trillion (structured in stock awards).
- Target market cap: $8.5 trillion (Tesla’s market value was about $1.1T at the time of the proposal).
- Operational milestones: Deploy 1 million robotaxis, produce 1 million AI humanoid robots (Optimus), and large increases in adjusted earnings and vehicle production.
- Vesting / tenure: Musk must remain at Tesla at least 7.5 years to begin vesting and 10 years for the full package.
- Shareholder vote: Proposed vote at Tesla’s annual meeting on November 6, 2025.
- Legal context: The package follows previous high-value compensation plans and legal scrutiny; shareholder approval and court outcomes could affect implementation.
Board statement
Board leaders said Musk’s “singular vision” is vital and that securing his commitment is “fundamental to Tesla achieving these goals and becoming the most valuable company in history.” The board also noted concerns Musk might pursue other interests without such assurances.
Why it matters
The proposal ties enormous potential pay to extremely aggressive growth and deployment targets few, if any, companies have set. Critics call it excessive and risky; supporters say it aligns incentives for long-term transformation.
Sources
- Business Insider — 5 Major Takeaways
- ABC News — Elon Musk in line for $1 trillion pay package
- CBS News — Tesla offers pay package that could be worth up to $1 trillion
Share your thoughts in the comments: Is this a visionary incentive or corporate excess?