Tesla Inc. has proposed a new compensation deal for its CEO Elon Musk. The package could be worth a record $1 trillion, but Musk must achieve a number of milestones to receive it.
Tesla Inc. has proposed a new compensation deal for its CEO Elon Musk. The package could be worth a record $1 trillion, but Musk must achieve a number of milestones to receive it.
The offer is intended to incentivize Musk to run Tesla for many years and sets a series of ambitious benchmarks he must achieve to receive the full payout, Bloomberg reported .
The list of achievements for the next 10 years includes expanding Tesla’s new robotaxi business and increasing the company’s market value from its current $1.1 trillion to at least $8.5 trillion. That’s more than double the market capitalization of Nvidia Corp, which is currently the world’s most valuable company. Tesla’s value peaked in late 2024 at about $1.5 trillion.
The additional shares Musk could receive would increase his stake in the electric car maker to at least 25%, according to the terms of the offer, a stake Musk has publicly said he wants to take.
The plan is expected to provide financial benefits and increased control over the company for Musk, who is already the world’s richest person. Elon Musk’s previous $50 billion compensation package from Tesla was overturned by a court, but the company is appealing the decision and is seeking other compensation options, including a $30 billion interim stock award.
The huge cash bonuses are expected to keep Musk focused on Tesla as the company seeks growth in new markets, including robotics and AI. Although it was previously reported that Tesla is disbanding the team that worked on the Dojo supercomputer and ending efforts to develop its own chips for self-driving technology.
Mass has been Tesla’s CEO since 2008, but also runs four other companies: SpaceX, xAI, Neuralink and The Boring Company. In May, he said he intended to stay at Tesla’s helm for another five years.
If Tesla achieves its goals, the compensation package alone will make Musk a trillionaire. And combined with his stock, Musk’s total stake in Tesla will be worth more than $2 trillion.
