Tesla’s board of directors has unveiled an unprecedented compensation plan that could see Chief Executive Elon Musk earn more than $1 trillion if he achieves a series of ambitious targets over the next decade. Under the proposal, Musk would receive no salary or traditional bonuses; instead, his reward would be tied to milestones requiring Tesla’s valuation to rise more than eightfold, alongside operational breakthroughs in electric vehicles, robotics, and artificial intelligence.
The plan outlines 12 tranches of stock awards linked to both market and performance goals. To unlock the full package, Musk must deliver milestones including boosting a key Tesla earnings figure by 24 times, rolling out one million robotaxis, selling one million humanoid AI robots, and delivering an additional 12 million Tesla vehicles. The first benchmark requires Tesla’s market value to reach $2 trillion, doubling its current valuation. Tesla chair Robyn Denholm defended the package, saying retaining Musk’s leadership was “fundamental to Tesla becoming the most valuable company in history.”
The announcement follows controversy earlier this year when a U.S. court struck down Musk’s previous $50 billion award as unfair to shareholders. Despite this, Tesla’s board argued that Musk’s vision and leadership remain central to the company’s success, especially as it seeks to expand aggressively into new markets beyond electric cars. Last month, Musk was nonetheless granted $29 billion in Tesla shares from the original package, sparking sharp debate over executive pay.
Not everyone is convinced. Dan Coatsworth, investment analyst at AJ Bell, described the proposed payout as one that “beggars belief,” questioning whether a single executive could justify such an astronomical figure. He further argued that Tesla has been losing ground to rivals in the electric vehicle sector, while its brand has suffered from Musk’s controversial political activities and outspoken views. “Surely Musk should be fighting for his job, not Tesla’s board fighting to keep him,” he remarked, highlighting growing investor concerns over governance and priorities.
The record-setting proposal comes after months of speculation about Musk’s future at Tesla. Reports earlier this year suggested the board considered finding a successor, amid fears his commitments to projects like SpaceX and political involvement with U.S. President Donald Trump were distracting him from Tesla’s challenges. Tesla denied the claims, insisting Musk remains essential to its long-term vision. With the latest trillion-dollar package, the company appears to have made a dramatic move to secure his leadership, even as doubts linger over whether such bold targets are achievable.
