Tesla has unveiled an unprecedented compensation blueprint for CEO Elon Musk, setting the stage for what could become the most lucrative executive pay deal in history.
Under the proposal, Musk could secure roughly 12% of Tesla’s stock, valued at about $1 trillion, if the automaker reaches a towering market capitalization of $8.5 trillion and clears other operational hurdles within the next decade. Tesla’s current valuation stands near $1.1 trillion.
The reward would be issued as restricted stock, preventing Musk from immediately selling the shares.
“We believe that Elon’s singular vision is vital to navigating this critical inflection point,” Tesla chair Robyn Denholm told investors. “Retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history.”
The plan links Musk’s payout not only to market value but also to high-stakes benchmarks: producing 20 million vehicles by 2035, rolling out 1 million robotaxis, and pushing adjusted EBITDA to $400 billion, a dramatic leap from $16.6 billion in 2024.
Tesla shares, according to a Fox News report, rose after the regulatory filing, coming just weeks after Musk secured an interim $29 billion stock award meant to partially replace the $50 billion package voided by a Delaware court.
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Musk has repeatedly signaled his intent to stay at Tesla as it shifts focus from EV dominance to robotaxis and humanoid robotics.
