Austin, Texas: Tesla’s board of directors has unveiled a new pay package for CEO Elon Musk that could potentially make him the world’s first trillionaire, provided he achieves a series of highly ambitious goals over the next decade.

According to a regulatory filing, Musk would only receive compensation in the form of Tesla shares, with payouts tied to performance milestones and long-term growth. The proposal will be put to a shareholder vote at the annual meeting on November 6.

Terms of the package

  • Musk must raise Tesla’s market value from $1.1 trillion to $8.5 trillion within 10 years.
  • If successful, the package could add $900 billion to Musk’s current $400+ billion net worth (Forbes).
  • He would need to stay at Tesla for 7.5 years to start cashing in shares, and a full decade to receive the complete award.
  • Operational targets include:
    • Deployment of 1 million autonomous taxis
    • Production of 1 million humanoid robots
    • A 24-fold increase in profits to $400 billion

If Musk earns the full package, his stake in Tesla could rise from 13% to nearly 29%, cementing extraordinary control over the company.

Shareholder concerns

While Tesla’s board, led by Robyn Denholm and Kathleen Wilson-Thompson, argued that “retaining and incentivizing Elon is fundamental,” critics say the package is excessive and unjustified.

  • Natalia Renta, Americans for Financial Reform:

    “His median worker makes $57,000 while he is awarded a pay package that could add up to $1 trillion. It’s outrageous.”

Some shareholders also remain wary of Musk’s time spent on other ventures like SpaceX, xAI, and X (formerly Twitter), as well as his increasingly political public persona, which they argue has hurt Tesla’s sales.

A repeat of 2018?

The proposal closely resembles Musk’s 2018 pay plan, which was struck down earlier this year by a Delaware court as “excessive.” Tesla has since moved its corporate headquarters to Texas, where shareholder lawsuits are harder to pursue.

Tesla’s challenges

Once a pioneer in electric vehicles, Tesla has recently lost ground to Chinese automakers BYD and Geely, with sales slowing and competition rising. Critics blame Musk for focusing on projects like the Cybertruck, which has underperformed, instead of launching mass-market EVs.

Musk has downplayed traditional car sales, saying Tesla’s real future lies in AI, autonomous vehicles, and robotics.

What’s next

  • Shareholder vote on Nov. 6 will decide the fate of Musk’s new package.
  • If approved, Musk could secure 35 million Tesla shares if the company’s value hits $2 trillion, with additional shares granted for further growth milestones.
  • The package also requires Musk to develop a CEO succession plan as part of his long-term commitment.

Tesla’s stock closed 3.6% higher on Friday after the announcement.