Tesla Proposes $1 Trillion Elon Musk Pay Package Linked to Market Growth

Tesla has proposed an unprecedented $1 trillion performance-based pay package for CEO Elon Musk, contingent on Tesla's market valuation increasing from $1.1 trillion to $8.5 trillion over the next decade and achieving ambitious operational milestones including one million robotaxis, humanoid robots, and significant growth in electric vehicle production. The package is structured with multiple tranches that Musk can only unlock by meeting both market cap and operational targets, emphasizing a long-term commitment as he must hold shares for 7.5 to 10 years while remaining CEO. Tesla's board argues this is a necessary move to retain Musk's leadership amid his divided focus on other ventures like SpaceX and xAI, while critics question the scale of the package and its governance implications, especially given a recent court ruling against his previous compensation plan. Analysts note the plan signals Tesla's strategic pivot beyond electric vehicles toward AI, robotics, and sustainable energy, though near-term challenges like slowing EV demand and competition remain. Despite these concerns, supporters view the package as aligning Musk's incentives with shareholder value creation and preserving his control over Tesla's future direction.