Tesla Plans $1 Trillion Incentive Package for Elon Musk

Wed Oct 22 2025 02:08:58 GMT+0300 (Eastern European Summer Time)

Tesla's board proposes a staggering $1 trillion compensation scheme for CEO Elon Musk if he meets ambitious targets, igniting debates on executive pay and corporate governance.

Tesla has outlined a proposal for a $1 trillion pay package for CEO Elon Musk, contingent upon achieving several ambitious targets over the next decade, including increasing the company’s value eightfold and selling millions of vehicles and AI robots. This controversial plan comes amidst concerns over Musk's leadership and Tesla's declining sales. The board believes that incentivizing Musk is crucial for driving future growth. Nonetheless, industry experts express skepticism over the extraordinary compensation and Musk's recent leadership challenges.

Tesla boss Elon Musk will receive a pay package worth over $1tn (£740bn) if he hits a list of ambitious targets over the next decade, the board of the electric car firm has proposed.

To get the package, Musk, who is already the world's richest person, would need to boost Tesla's value eightfold, sell a million artificial intelligence robots, sell another 12 million Tesla cars, and hit several other moonshot goals.

Musk would not earn a salary or bonus but would instead be gradually awarded shares worth $1tn if he achieves all the targets. The company's board urged investors to vote in favour of the package.

Growth that may seem impossible today can be unlocked with new ideas, better technology, and greater innovation, Tesla chair Robyn Denholm said. Simply put, retaining and incentivising Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history.

Under the latest plan, Musk would be awarded shares in 12 tranches, tied to 12 market milestones. The first milestone is for Tesla's market value to double to $2tn, while the final milestone is set at $8.5tn—more than double the value of Nvidia, currently the world's most valuable company.

He must also hit an operational milestone alongside each market milestone, which includes the robot and vehicle targets, and a goal to increase one of Tesla's earnings figures 24-fold. Critics have raised eyebrows at Musk's compensation amid reports of declining sales and questions about his leadership style.

Investment analyst Dan Coatsworth expressed incredulity over the proposal, questioning whether one individual merits such a sum and noting overall concerns about Tesla's performance under Musk. The board's move to provide such a generous package follows a previous $29bn share award to Musk, awarded just last month after a court overturned a previous deal deemed unfair to shareholders.

This unprecedented proposal raises serious questions regarding corporate governance and executive compensation, especially amid the company's current challenges.