Tesla CEO Elon Musk could become the world’s first trillionaire if shareholders approve a new pay package that would tie his earnings to unprecedented growth at the electric vehicle giant.
According to a Securities and Exchange Commission (SEC) filing, Tesla’s board of directors is asking shareholders to approve a compensation plan valued at up to $1 trillion over the next decade.
It is one of the largest executive pay proposals in U.S. corporate history.
“Yes, you read that correctly,” Tesla’s board wrote in a Sept. 5 letter to shareholders.
“In 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.”
The package is structured around a dozen key milestones, including:
• Delivering 20 million vehicles.
• Deploying 1 million robotaxis.
• Manufacturing 1 million Optimus AI robots.
• Reaching a market capitalization of $8.5 trillion — roughly eight times Tesla’s current value.
Musk would also be required to remain with Tesla for at least seven and a half years to cash out his stock, and a full decade to receive the entire package.
The plan also requires him to lay out a succession blueprint.
“Tesla does not currently have a long-term CEO performance award in place to retain and incentivize Elon to focus his energies on Tesla and lead us through this pivotal moment in our history,” the filing stated.
“It’s time to change that.”
Tesla shareholders are scheduled to vote on the proposal at the company’s annual meeting on November 6.
The news helped push Tesla shares nearly 3% higher at the end of the holiday-shortened trading week.
However, the stock remains down more than 8% in 2025 amid slowing demand and weaker-than-expected earnings.
Analysts are split on Tesla’s outlook.
The Wall Street consensus remains “Hold,” with some projecting further downside.
But others see massive upside tied to Musk’s vision of AI-powered cars and robotics.
Wedbush analyst Dan Ives praised the package.
“Tesla Board made the right decision and we are big fans on this pay package for Musk,” Ives wrote on X.
He called the goals “big” but aligned with the “AI Revolution” reshaping the industry.
Last month, Ives reiterated his “Outperform” rating, predicting a 65% upside in the next year.
Nancy Tengler, CEO and CIO of Laffer Tengler Investments, agreed, pointing to Tesla’s future in AI and robotics.
She described the company as a “narrative stock, with the narrative primarily being Elon,” and said Musk’s history shows he thrives under pressure.
“Musk has frequently teetered on the edge of disaster—a great abyss below and an impossible leap to safety ahead—and yet he repeatedly pulls it off,” Tengler said.
This isn’t the first time Musk’s pay has sparked controversy.
In 2018, Tesla’s board approved a $56 billion package, the largest in corporate history at the time, tied to aggressive growth targets.
Tesla’s market cap has since surged past $1 trillion, but in January 2024, a Delaware judge struck down the deal, citing conflicts of interest on the board.
Shareholders later voted overwhelmingly, 77% in favor, to reinstate it.
However, the court has yet to issue a final ruling.
Last month, Tesla’s board also awarded Musk an additional $29 billion in equity grants.
Musk’s current net worth is pegged at $248 billion, according to Forbes, due to his large holdings in Tesla, SpaceX, The Boring Company, and X.
READ MORE – Elon Musk: ‘Relentless Propaganda’ Is a ‘Major Driver of White Males Becoming Trans’
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