‘Yes, you read that correctly,’ Tesla’s Board of Directors said.
Tesla CEO Elon Musk stands to earn a staggering $1 trillion over the next decade, according to newly released company filings outlining an ambitious compensation plan.
In a Securities and Exchange Commission regulatory filing, Tesla’s board of directors is requesting that shareholders approve a new executive pay structure, which could be valued at up to $1 trillion, making it one of the largest executive pay packages in U.S. corporate history.
“Yes, you read that correctly,” board members said 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 remuneration plan would also give Musk more voting power.
For Musk to potentially become the world’s first trillionaire, the proposal features about a dozen pivotal milestones. This includes 20 million automobile deliveries, the deployment of a million robotaxis in commercial operation, and the manufacturing of a million artificial intelligence Optimus robots.
The electric vehicle juggernaut’s market cap would also need to reach $8.5 trillion in this time span—approximately eight times its current value.
Additionally, Musk is required to stay at Tesla for at least seven and a half years to cash out his stock and 10 years to receive the full pay deal. He must also craft a blueprint for someone to succeed him as CEO.
“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 plans to hold its annual shareholders meeting on Nov. 6.
By Andrew Moran
