Tesla Proposes Unprecedented $1 Trillion Pay Package for Elon Musk
According to Reuters, the plan would grant Musk 423.7 million restricted stock units—approximately 12% of Tesla’s current equity—spread across 12 tranches. These tranches would vest only if Tesla’s market capitalisation reaches $8.5 trillion, up from its current valuation near $1.1 trillion.
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Tesla’s board has proposed a $1 trillion compensation plan for CEO Elon Musk, potentially the largest executive pay deal in history, contingent upon extraordinarily ambitious operational and market-value milestones over the next decade.
According to Reuters, the plan would grant Musk 423.7 million restricted stock units—approximately 12% of Tesla’s current equity—spread across 12 tranches. These tranches would vest only if Tesla’s market capitalisation reaches $8.5 trillion, up from its current valuation near $1.1 trillion. Operational targets include reaching 20 million vehicle deliveries, securing 10 million Full Self-Driving (FSD) subscriptions, and deploying 1 million robotaxis and 1 million humanoid robots. A succession plan approved by the board is also required for the final tranches.
The Wall Street Journal adds that, if achieved, the payout would grant Musk up to a 29% ownership stake, reinforcing board confidence in his long-term leadership amid recent distractions. Tesla is asking shareholders to approve this mega-incentive, noting the significant expansion of Musk’s control over the company if the targets are met.
According to Nairametrics, the proposal was filed on Friday and points to a bold bet on Musk’s continued stewardship of Tesla through strategic expansion into AI and robotics.
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