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Tesla has unveiled a staggering new compensation plan for Chief Executive Officer Elon Musk, potentially valued at $1 trillion. The Reuters report has raised quite a few eyebrows already.
The unprecedented package aims to secure Musk’s leadership for the next decade by tying rewards to ambitious performance targets. This includes his efforts in expanding Tesla’s robotaxi network and boosting the company’s market capitalization from about $1 trillion to $8.5 trillion.
According to Tesla’s proxy filing, Musk could gain enough additional shares to raise his ownership stake to roughly 25%, a threshold he has publicly sought. The plan spans 10 years and is at a far larger scale than his 2018 $50 billion award, which was overturned by a Delaware court earlier this year. The filing also notes Musk must contribute to the company’s CEO succession framework to unlock the final portions of the award.
Tesla’s board emphasized that retaining Musk is ‘fundamental’ to its vision of becoming the most valuable company in history. Alongside the package, a non-binding shareholder proposal suggests Tesla may explore a stake in Musk’s artificial intelligence venture, xAI. Tesla shares rose by 2% in New York trading as of 6:30 A.M. following the announcement, though the stock remains down 16% year-to-date.
Tesla share price chart on TradingView shows gains of 1.33% in pre-market trading on Nasdaq at press time:
The proposal comes as Musk juggles multiple responsibilities, including leadership roles at SpaceX, xAI, Neuralink, and The Boring Company. The CEO’s political activities, particularly his ties to former President Donald Trump, have fueled controversy and, at times, backlash against Tesla. Despite recent turbulence, Tesla’s rollout of its driverless taxi service in Austin on June 22 has restored some optimism in its growth trajectory.
Also Read:Tesla Stock at $310 After CEO Musk's New $30 Billion Compensation
