Tesla has rolled out a new 10-year pay package for CEO Elon Musk, one that could reach as high as $1 trillion. The proposal comes at a time when the electric carmaker is struggling with its core auto business while shifting focus toward humanoid robots and artificial intelligence.
Under the proposal, Musk’s payout is linked to strict performance targets, including lifting Tesla’s market value from its current level of about $1 trillion to over $8 trillion. If those goals are met, he would receive more than 423 million new shares, giving him roughly a quarter of the company’s voting power. Musk has openly warned in the past that he might walk away from Tesla if he wasn’t granted greater control.
The proposed compensation plan is also tied to ambitious targets, including adding an extra $7.5 trillion in market value, doubling Tesla’s worth compared with Nvidia. Over the next ten years, Musk would need to oversee the delivery of 20 million vehicles and one million of the company’s Optimus robots. Additionally, the plan requires putting one million robotaxis into service and increasing the number of Full Self-Driving subscribers by 10 million.
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To meet the proposed plan’s targets, Tesla’s CEO would need to boost the company’s earnings before interest, taxes, depreciation, and amortization to $400 billion over the next decade, a huge jump from last year’s $16.6 billion.
Tesla shareholders will get their say on the pay package at the company’s annual meeting later this year. The proposal follows the $29 billion compensation plan unveiled just last month, designed to replace an earlier deal that was invalidated by a Delaware court ruling.
In its filing with the Securities and Exchange Commission (SEC), Tesla told investors that it views the moment as a “critical inflection point” for society, as quoted by TechCrunch. The company said it aims to help shape a future of “sustainable abundance” by “introducing innovative and affordable technologies at scale.”
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“Tesla can help bring about a society that democratizes autonomous goods and services,” the company mentioned.
Tesla emphasized that Musk’s “singular vision” is “vital” for steering the company through what it called a critical turning point. The filing pointed to its recently released “Master Plan Part IV,” crediting Musk with unveiling it, though the CEO himself only briefly noted it even admitting the plan was light on details.
If approved, the 10-year compensation package would dramatically increase Musk’s wealth and influence within Tesla. Hitting the ambitious performance targets could grant him hundreds of millions of additional shares, boosting his voting power to roughly a greater percentage and giving him greater control over the company’s strategic direction.