Tesla has put forward a record-breaking $1 trillion compensation package for CEO Elon Musk, making it the largest executive pay proposal in corporate history. The bold plan highlights how much Tesla is relying on Musk to guide the company beyond electric cars and into next-generation technologies.
Under the proposal, Musk could earn up to 12% of Tesla’s stock—but only if the automaker achieves ambitious goals, including reaching an $8.6 trillion market valuation within the next 10 years. The deal mirrors Musk’s 2018 performance-based package, then valued at $56 billion, but this time on an even more staggering scale. Importantly, Musk would receive no salary or cash bonuses—his entire payout depends on Tesla’s long-term success.
Tesla’s board argues the unprecedented package is essential to keep Musk committed as the company accelerates into new markets like artificial intelligence, robotaxis, and humanoid robots. Supporters point to Musk’s track record in transforming Tesla into the world’s most valuable automaker, while critics warn the package could dilute shareholder value and raise corporate governance concerns.
Following the announcement, Tesla shares jumped nearly 3%, signaling strong investor interest. The proposal now moves to a shareholder vote in November, where it is expected to spark intense debate over Musk’s outsized role at Tesla and whether the company can achieve its lofty trillion-dollar targets.