Tesla's Board Proposes Unprecedented Pay Package for Musk

In a bold move, Tesla's board of directors is seeking shareholders' approval for a staggering pay package for CEO Elon Musk that could soar to an eye-popping $1 trillion over the next decade. This monumental offer could secure Musk's position as one of the highest-paid executives in corporate history.

Details of the Pay Package Revealed

According to a recent regulatory filing, the electric vehicle giant aims to grant Musk approximately 423 million shares—currently valued at around $143 billion—contingent on the company achieving ambitious profitability, production, and market valuation milestones.

Aiming for the Stars: Massive Market Cap Goals

To unlock the full potential of this lucrative pay package, Tesla would need to rocket to a staggering market cap of $8.5 trillion—eight times its current valuation—within 10 years. At this valuation, Musk’s shares would amass over $1 trillion in worth, a feat that would rewrite the rules of corporate compensation.

Operational Targets in Focus

The road to this $1 trillion payday isn’t a walk in the park. Tesla must hit several ambitious targets, including delivering 20 million vehicles, producing a million self-driving "robotaxis," and creating a million humanoid robots known as Optimus, which are still in development.

Extra Voting Power: A More Influential Role?

As if that wasn't enough, the proposed deal would also grant Musk greater voting power within the company, further solidifying his influence over Tesla's future direction.

Industry Insights: A Pivotal Moment for Tesla

Wedbush analyst Dan Ives highlighted the importance of this compensation plan, calling it crucial for retaining Musk as CEO through at least 2030. He noted that Tesla is on the brink of a transformative phase, with advancements in autonomy and robotics ready to revolutionize the market.

A History of Legal Challenges

Musk's previous pay package has not been without controversy. In 2018, Tesla investors initiated a lawsuit challenging Musk's eye-popping $56 billion compensation deal, accusing him and the board of breaching their duties. A Delaware judge even ordered the revocation of that award last December.

Recent Challenges and Competitive Pressures

Despite the ambitious pay plan, Tesla is currently facing its share of hurdles. Vehicle sales saw an unexpected slump, with a 1% drop in 2024, marking the company's first annual decline in over a decade. This comes alongside intensifying competition and some customer discontent regarding Musk's political affiliations. Furthermore, Tesla's latest quarterly report revealed a dramatic plunge in profits, dropping from $1.4 billion to $409 million.

Stock Performance: A Mixed Picture

While Tesla's stock price has faced challenges in 2025, it has seen a resurgence of over 54% in the last year and a staggering 143% increase over the past five years, hinting at potential for recovery amidst the turbulence.