California, September 5, 2025 – Tesla’s board has put forward an unprecedented compensation plan for CEO Elon Musk, potentially worth up to $1 trillion over the next decade. The deal, structured entirely around performance, would grant Musk stock options tied to ambitious milestones rather than any salary or cash bonus.
A Package of Historic Scale
Under the proposal, Musk could receive roughly 423 million Tesla shares, representing about 10% of the company, if all targets are met. These goals include scaling Tesla’s annual vehicle deliveries to 20 million, securing 10 million active full self-driving subscriptions, and deploying 1 million humanoid robots along with 1 million robotaxis. The company’s market capitalization would also need to rise from its current $1 trillion to around $8.5 trillion, while annual adjusted earnings would have to hit $400 billion.
Strict Lock-In Conditions
The shares would vest only if Tesla maintains these performance levels, and most cannot be sold for seven to ten years. This structure ensures Musk remains committed to the company’s long-term vision, spanning electric vehicles, autonomous driving, robotics, and artificial intelligence.
Investor Optimism and Market Impact
The announcement sparked a positive reaction in financial markets, with Tesla’s stock rising in pre-market trading. Supporters argue the plan motivates Musk to deliver extraordinary growth, aligning his rewards with shareholder success.
Criticism and Governance Concerns
Critics, however, warn that the proposal risks further concentrating power in Musk’s hands and diluting shareholder equity. The scale of the package also raises questions about corporate governance, particularly after Tesla’s earlier $56 billion pay plan from 2018 was invalidated in court.
What Comes Next
Tesla shareholders will vote on the proposal at the company’s annual meeting scheduled for November 6. If approved, it would cement Musk’s influence over Tesla well into the next decade while setting one of the boldest compensation precedents in corporate history.
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