Tesla is offering CEO Elon Musk a new pay package that could be worth up to $1 trillion over the next decade, making it one of the largest compensation deals in corporate history.
Why it matters: The board believes Musk is essential to Tesla’s success and wants to ensure he remains focused on leading the company through a critical growth period.
The details:
- The package includes 423.7 million additional Tesla shares, worth $148.7 billion at Friday’s closing price.
- Musk will receive the full package only if Tesla reaches a market cap of $8.5 trillion, about eight times its current value, and achieves certain operational targets.
- These targets include delivering 20 million vehicles, producing 1 million self-driving “robotaxis,” and manufacturing 1 million humanoid robots called Optimus.
The board emphasizes that Musk’s leadership is necessary to transform Tesla and realize its long-term mission.
What they’re saying:
- “The simple message the board is sending to Elon: ‘We want your attention on Tesla,'” wrote Gene Munster, managing partner at Deepwater Asset Management.
- “This is all about Musk being scared about being kicked out of Tesla because he only owns 13%,” said Ross Gerber, CEO of Gerber Kawasaki, an early Tesla investor.
Critics argue that Musk has a history of unmet promises, such as missing deadlines for full self-driving vehicles and robotaxis.
The other side: Some believe Musk’s vision for AI, autonomous vehicles, and robotics will drive Tesla to reach the $8.5 trillion target.
What’s next: Tesla shareholders will vote on the proposed pay package, with a strong likelihood of approval given Musk’s track record of securing similar deals in the past.
Recent from X
Tesla Board made the right decision and we are big fans on this pay package for Musk. Big goals for Musk and Tesla in this comp package as the AI Revolution takes hold and Tesla heads down the autonomous and robotics path 🏆🐂🔥🎯
— Dan Ives (@DivesTech) September 5, 2025
Still wondering if we're living in a second Gilded Age? https://t.co/abU8dZMsXZ
— Robert Reich (@RBReich) September 5, 2025
While the media is very excited about Elon Musk's opportunity to make a trillion dollars in stock with the 2025 compensation plan, they should really be excited about the:
– 10 million FSD subscriptions,
– 20 million vehicles delivered
– 1 million commercially operated… pic.twitter.com/GdKvIgv8M0
— Alex (@alex_avoigt) September 7, 2025
