Tesla Board Proposes Record-Breaking \$1 Trillion Pay Package for Elon Musk

On September 5, reports revealed that Tesla has put forward a jaw-dropping new compensation proposal for CEO Elon Musk — a package with a potential value of up to $1 trillion, setting an unprecedented record in human history.

This bold proposal is designed to keep Musk at the helm of Tesla for years to come, backed by a set of ambitious performance targets. Key milestones include scaling up Tesla’s early-stage Robotaxi operations and skyrocketing the company’s market value from its current ~$1 trillion to at least $8.5 trillion. Musk will only receive the full payout if he meets these lofty goals.

If achieved, this valuation would make Tesla more than twice as valuable as NVIDIA, currently the world’s most valuable company.

According to the agreement, the initial CEO award is worth $87.8 billion. Should Musk hit every milestone and unlock all restricted stock units — distributed in 12 tranches — the total value would soar to approximately $1 trillion.

There’s also a leadership succession clause: Musk must actively participate in the board’s long-term CEO succession planning to receive the final two tranches of the award.

The performance roadmap is nothing short of extraordinary. Musk must achieve 12 market cap and operational targets, including delivering 1 million Optimus robots, producing 20 million Tesla vehicles annually, deploying 1 million Robotaxis for commercial use, and pushing Tesla’s adjusted EBITDA to $400 billion.