Tesla Proposes $1 Trillion Pay Package for Elon Musk, Tied to Ambitious AI and Robotics Goals

Tesla offers $1 trillion to Elon Musk to unleash his army of robots

Elon Musk could become the world's first trillionaire if Tesla shareholders approve a new pay package that was just put forward by the company's board. Musk would need to meet certain milestones in order to receive that eye-popping compensation, such as producing 1 million robotaxis and 1 million humanoid robots, as well as increase Tesla's valuation by trillions of dollars. Musk, already the world's richest man, would ascend to new heights of financial untouchability if he is able to achieve these goals. The proposal builds on an interim award of $29 billion that was announced last month. In total, the package is worth approximately $975 billion based on maximum payout. And it would give Musk more control over the company, which he has demanded in order to achieve his vision for AI-powered cars and robots. This isn't the first time that Tesla has tried throwing a bunch of cash at Musk to keep him focused on the company. The company offered him a pay package worth more than $50 billion in 2018, but last year a Delaware court voided it, arguing that the deal was flawed and unfair to shareholders and that Musk held undue influence over its composition. Shareholders had voted twice to approve the hefty compensation, but the judge still upheld their ruling that blocked it. Tesla has appealed the decision to the Delaware Supreme Court. Now, the company is asking shareholders to approve this new award, arguing that Tesla is on the cusp of becoming a leader in AI and robotics, requiring Musk's steady hand on the helm. "We believe that Elon's singular vision is vital to navigating this critical inflection point," Tesla board chair Robyn Denholm wrote in a letter to shareholders. "We also recognize the formidable nature of this undertaking and as a result, the importance of having a leader who is not only willing and capable but eager to meet this challenge." The pay package amounts to a huge vote of confidence at a time when Musk's political meddling has taken an enormous toll on the electric car company that is the source for his vast wealth. Tesla's sales have declined significantly across the globe as rising competition from China, as well as Musk's vocal support for far-right politics, have diminished the company's brand. And yet, Tesla's stock has always outperformed its reality as an electric car and renewable energy company, which has led some critics to deride it as meme stock. To secure this vast payout, Musk would need to stay as CEO of Tesla for at least seven years, or up to 10 years in order to receive the full amount. During that time, he would need to deploy 1 million robotaxis into commercial service, as well as 1 million Optimus robots, all while growing the company's market capitalization by trillions of dollars and creating "nearly $7.5 trillion in value for shareholders." Musk and his brother Kimbal, both board members, recused themselves from the proposal, according to the filing. After years of growth, the sudden reversal in Tesla's fortune has left many investors and supporters with whiplash. As Musk slid deeper into politics, investors urged him to stay focused on Tesla and its costly -- and questionable -- project to build more self-driving cars and humanoid robots. The company rolled out its first robotaxi service in Austin, Texas, this summer -- although the service fell short of Musk's earlier predictions. The company's only new product since 2020, the Cybertruck, has widely been considered a flop. And competition from legacy automakers, especially those in China, has been sapping Tesla's resources. Musk is currently Tesla's largest shareholder, with a 13 percent stake in the company. But the CEO has said that he wants more control over the company in order to have more sway over its mission -- which this plans aims to produce. "That is a major concern for me, as I've mentioned in the past, and I hope that is addressed at the upcoming shareholders meeting," Musk said in a recent earnings call, in response to a question about his voting stake. "I think my control of Tesla should be enough to ensure that it goes in a good direction, but not so much control that I can't be thrown out if I go crazy."

Tesla seeks to award Elon Musk $1tn if carmaker hits formidable targets

Tesla's board has proposed a new pay package for chief executive Elon Musk worth $1tn over the next decade if he is able to hit a series of formidable targets. Musk will receive no salary or bonus under the plan unveiled on Friday, but would collect shares in instalments unlocked by increases in Tesla's market value, combined with milestones including a huge increase in earnings and selling millions of cars, robotaxis and artificial intelligence-powered robots. "Retaining and incentivising Elon is fundamental to Tesla . . . becoming the most valuable company in history," chair Robyn Denholm said in a letter to investors. The package is "designed to align extraordinary long-term shareholder value with incentives that will drive peak performance from our visionary leader". The board stressed that Musk's incentives were aligned with investors' interests and he will receive nothing if Tesla's growth stalls. However, the sheer scale of the deal is likely to revive a fierce debate over the earnings of the world's richest man. Musk's 2018 Tesla pay deal was struck down by a Delaware judge after a protracted court battle. He has already amassed a $374bn fortune from his stake in Tesla and private holdings in SpaceX, xAI, Neuralink and The Boring Company. Musk has repeatedly raised the prospect of reducing his commitment or even leaving Tesla if he is not given greater voting rights. Achieving the maximum payout of 423mn shares will be extremely challenging. Musk would have to boost Tesla's market capitalisation to $8.5tn from $1.09tn today. That is more than twice that of Nvidia, currently the most valuable company in the world at $4.2tn. Tesla must also sell 12mn more electric vehicles; reach 10mn autonomous driving subscriptions; register and operate 1mn cars in its Robotaxi network; sell 1mn AI robots and increase adjusted earnings 24-fold to $400bn. Those top-end targets appear distant considering Tesla's adjusted earnings were $16.6bn last year; it has sold only 8mn cars to date, zero robots or robotaxis, and comparatively few so-called Full Self-Driving subscriptions. The first valuation milestone is $2tn. If Musk fails to double Tesla's valuation over the 10-year period of the plan, he will receive nothing. The market cap targets then ratchet up in $500bn and $1tn increments to $8.5tn. When each level is hit, it must be paired with one of the other earnings or sales targets to activate a tranche of shares. There are multiple earnings before interest, taxes, depreciation and amortisation targets that also escalate in stages, starting at $50bn and rising to a maximum of $400bn. Each of the 12 levels is worth 1 per cent of Tesla stock, each equivalent to about 35mn shares. If a valuation level is achieved, married with a second profit target and sustained for six months, Musk will gain and retain the voting rights of the shares. However, he cannot sell that stock for seven-and-a-half years and must negotiate with the board before making any large disposals to reduce volatility in the stock price. Towards the end of the 10-year timescale of the plan, when he is 64 years old, Musk must "participate in the board's continued development of a framework for long-term CEO succession", the proposal states. To hit his targets, Musk will have to reverse a slide in Tesla's share price, which has fallen 30 per cent since mid-December. Sales have plunged amid a consumer backlash against Musk's divisive political activism and investor concern about his rift with President Donald Trump, who has cancelled numerous EV and solar incentives. The structure echoes Musk's deal from 2018, which was also thought to be unachievable, but that paid out in full after Tesla's value grew from $59bn to exceed $650bn. That netted Musk $56bn in stock options, the largest pay award in history. However, the controversial package was struck down by a Delaware judge last year who ruled its size was excessive and the board was too close to Musk after a seven-year court battle. Tesla has appealed to the state's supreme court and moved its incorporation to Texas. With the case still pending, Tesla last month awarded Musk 96mn shares worth about $30bn in what it described as a "good faith" interim payment. That has increased his ownership from 13 per cent to 16 per cent. The interim payment will be voided if the 2018 package is reinstated, which would boost Musk's stake to about 20 per cent. If the entire 2025 package is activated and Tesla wins the Delaware appeal, Musk's control would rise to 32 per cent. However, after taxes and dilution, that would end up at about 25 per cent of the votes, a person familiar with the structure told the Financial Times. Musk has argued that without at least a fifth of the shares he could be vulnerable to activist investors or a takeover, which is dangerous as it develops powerful AI technology and millions of robots. The board will ask shareholders to vote on the new package at its November 6 annual meeting in Austin, Texas. If Tesla wins more than 50 per cent of votes cast, 423mn additional shares will be issued on top of the 3.2bn outstanding. Musk and his brother Kimbal, who is on the board, are allowed to vote under Texas laws, whereas they have had to recuse themselves in prior matters about his pay.

Tesla to award Musk an unparalleled $1 trillion - depending on performance

Sept 5 (Reuters) - Tesla's (TSLA.O), opens new tab board has proposed a $1 trillion compensation plan for CEO Elon Musk in what would be the largest corporate pay package in history, underscoring the hold Musk has over the carmaker as it attempts to transform into an AI and robotics powerhouse. The world's richest person has consistently said he needs more of a stake in the company, even as a legal battle over his 2018 pay package - then valued at a mere $56 billion - continues. The regulatory filing puts Musk on a different plane than other technology executives, saying that "traditional compensation packages granted to executives at other companies were determined to not be appropriate for designing Mr. Musk's incentive compensation." The proposed plan would grant Musk up to 12% of Tesla's stock, worth about $1.03 trillion if the company hits its target market value of $8.6 trillion. The plan requires boosting Tesla's valuation nearly eightfold, or about $7.5 trillion, over the next decade. If fully earned, the award would materially increase Musk's voting power from his roughly 13% stake, intensifying debate over governance and succession. Musk would receive no salary or cash bonus under the proposal, with the compensation is tied to stock awards that vest only if Tesla meets both market cap and operational targets, such as selling millions of EVs, deploying robotaxis, and delivering AI-powered humanoid robots. The company's shares were up about 2% in premarket trading. Tesla's board earlier this year approved an interim compensation package for CEO Elon Musk worth about $29 billion in restricted stock, designed to keep him at the helm through at least 2030 as the company pivots to an AI-first strategy. Tesla moved its corporate base from Delaware to Texas in 2024 after a Delaware judge twice voided Musk's 2018 package. The appeal remains pending at the state's Supreme Court. Reporting by Akash Sriram in Bengaluru; Editing by Anil D'Silva and Saumyadeb Chakrabarty Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Autos & Transportation * ADAS, AV & Safety * Sustainable & EV Supply Chain

Tesla offers mammoth $1 trillion pay package to Musk, sets lofty targets

Sept 5 (Reuters) - Tesla's (TSLA.O), opens new tab board has proposed a $1 trillion compensation plan for CEO Elon Musk in what would be the largest corporate pay package in history, underscoring the hold Musk has over the carmaker as it attempts to transform into an AI and robotics powerhouse. The world's richest person has consistently asked for a bigger stake in the company to gain more control, even as a legal battle over his 2018 pay package - then valued at a mere $56 billion - continues. The newly proposed award is roughly 18 times the size of the contested plan and is close to the company's current market valuation. The proposal highlights the board's confidence in Musk's ability to steer the company in a new direction while reigniting growth, even as it loses ground to Chinese rivals in key markets amid softening EV demand. "While bold compensation tied to performance is nothing new, the sheer scale here sets a new bar for CEO incentives and will dominate boardroom debates everywhere," said Adam Sarhan, chief executive of 50 Park Investments in New York. The regulatory filing puts Musk on a different plane than other technology executives, saying that "traditional compensation packages granted to executives at other companies were determined to not be appropriate for designing Mr. Musk's incentive compensation." Musk transformed Tesla from a niche EV startup into the world's most valuable automaker, scaling production, expanding globally and pushing the industry toward electric mobility, while running several other companies including SpaceX and xAI. Tesla's board says the record award is needed to keep Musk focused and incentivized, but critics argue that, as the company's largest shareholder, he already has ample motivation and the plan could worsen dilution and pose governance risks. The board also said the new award could lift his stake significantly if all targets were met, giving him even greater control as Tesla seeks to become the world's most valuable company. The compensation plan does not impose conditions on how much time he must devote to Tesla. "This is a ridiculously large pay package. It raises lots of questions, but last year Musk moved Tesla from Delaware to Texas in order to avoid all those questions," said Brian Quinn, professor at Boston College Law School. "Given that Tesla's stock price is basically all vibes and appears to have very little to do with the automaker's actual performance, I suspect they will approve this package." COMPENSATION DETAILS The proposed plan would grant Musk up to 12% of Tesla's stock, worth about $1.03 trillion if the company hits its target market value of $8.6 trillion. The plan requires boosting Tesla's valuation nearly eightfold, or about $7.5 trillion, over the next decade. Item 1 of 2 Tesla Chief Executive Officer Elon Musk gets in a Tesla car as he leaves a hotel in Beijing, China May 31, 2023. REUTERS/Tingshu Wang/File Photo [1/2]Tesla Chief Executive Officer Elon Musk gets in a Tesla car as he leaves a hotel in Beijing, China May 31, 2023. REUTERS/Tingshu Wang/File Photo Purchase Licensing Rights, opens new tab Musk had said that Optimus humanoid robots might eventually account for about 80% of Tesla's value and predicted they could help make the company worth $25 trillion. If fully earned, the award would materially increase Musk's voting power from his roughly 13% stake, intensifying debate over governance and succession. The board said the award would vest in tranches tied to both market capitalization and operational milestones such as mass production of robotaxis and humanoid robots. Tesla emphasized that Musk would receive no salary or cash bonus, with all compensation linked to performance, echoing the structure of his 2018 plan. The company's shares were up about 3%. Tesla's board earlier this year approved an interim compensation package for Musk worth about $29 billion in restricted stock, designed to keep him at the helm through at least 2030 as the company pivots to an AI-first strategy. Tesla has since reincorporated in Texas and is appealing the Delaware ruling, but the company said the new plan reflects shareholder feedback and stronger governance safeguards. The filing also disclosed that a special committee of independent directors reviewed the proposal, which will go to a shareholder vote in November. POLITICS CLOUD FOCUS Musk's foray into party politics and his willingness to challenge President Donald Trump had heightened concerns among Tesla investors and analysts about potential distractions and had previously fueled talk about looking for a new chief. In July, Musk announced plans to launch a third political party, the "America Party," following a public clash with Trump over a tax cut and government spending bill. Tesla's board has urged shareholders to vote against a proposal calling for a political neutrality policy, which would have expanded board oversight of Musk's political activities. "It really seems like what Elon wants, Elon gets from the board and from his shareholders," said Douglas Chia, president of Soundboard Governance, an independent corporate governance consulting firm. "As ridiculous as it is, they'll pass it, I have no doubt." Reporting by Akash Sriram, Shashwat Chauhan, Jaspreet Singh and Harshita Mary Varghese in Bengaluru and Ross Kerber in Boston; Editing by Saumyadeb Chakrabarty and Anil D'Silva Our Standards: The Thomson Reuters Trust Principles., opens new tab Akash Sriram Thomson Reuters Akash reports on technology companies in the United States, electric vehicle companies, and the space industry. His reporting usually appears in the Autos & Transportation and Technology sections. He has a postgraduate degree in Conflict, Development, and Security from the University of Leeds. Akash's interests include music, football (soccer), and Formula 1.

Elon Musk in line for $1 trillion pay package if Tesla hits aggressive goals over next 10 years

Tesla CEO Elon Musk could be in line for a payout of $1 trillion if his electric car company meets a series of extremely aggressive targets over the next 10 years, according to documents released by the company. Tesla, which is leaning heavily into robotics and AI, said in a regulatory filing on Friday that the package has a dozen share tranches that include awards for Musk if targets, ranging from car production to the total value of the company, are met over that time period. Very early in the plan, Tesla would have to reach a market valuation of $2 trillion and achieve 20 million vehicles deliveries. Tesla delivered less than 2 million vehicles in 2024. That milestone would also required a million robotaxis in commercial operation and the delivery of 1 million artificial intelligence bots. Musk needs to remain with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount. Musk would also receive more voting power over Tesla under the proposed plan. The EV company is set to hold its annual shareholders meeting on Nov. 6. Tesla's last shareholders meeting was on June 13 of last year, where investors voted to restore Musk's record $44.9 billion pay package that was thrown out by a Delaware judge earlier that year. A condition of the 11th and 12th tranches of the plan includes Musk coming up with a framework for someone to succeed him as CEO. Tesla's stock rose nearly 2% in premarket trading.

Tesla's board to Elon Musk: Hit these milestones, and we'll make you a trillionaire

It's September 2025, and things are looking peachy keen. Sure, the US job market has taken a nosedive. And yeah, only one in four Americans believes they have a good chance of improving their standard of living. But hey, Tesla's board has proposed a pay package that could make Elon Musk the world's first trillionaire. What really matters is that someone is having a good time, right? Tesla's board laid out what's by far the biggest CEO compensation package in history on Friday. It reads like the ultimate dangled carrot for a leader who is both driven by wealth and power and also prone to distraction. The compensation plan is based on performance metrics that, at least for now, seem far-fetched. First, the Tesla leader would have to remain at the company for seven and a half years to cash in any shares. To receive the full payout, he'd have to stay for a full decade. Musk also runs a rocket company and an AI company (which also operates the former Twitter, aka X). So, above all else, the proposal is designed to keep his attention on the company that made him the world's richest person. For Musk to receive the full payout of around $900 billion, Musk would have to increase Tesla's market value to $8.5 trillion. It's worth about $1.1 trillion today. Other performance requirements include deploying a million Tesla robotaxis and a million AI robots. Musk would also be incentivized to participate in the company's long-term CEO succession plans. The package also includes structural protections to minimize stock price volatility, which the company has become well-acquainted with in 2025. "We believe that Elon's singular vision is vital to navigating this critical inflection point," Tesla board leaders Robyn Denholm and Kathleen Wilson-Thompson wrote in the shareholder letter. "We also recognize the formidable nature of this undertaking and, as a result, the importance of having a leader who is not only willing and capable but eager to meet this challenge. Simply put, retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history." Denholm and Wilson-Thompson implied the package was at least partly motivated by the CEO threatening to jump ship. "Mr. Musk also raised the possibility that he may pursue other interests that may afford him greater influence if he did not receive such assurances," they wrote. "Ultimately, the Special Committee believed it to be critical to Tesla to secure Mr. Musk's commitment and focus to lead Tesla." Tesla shareholders will have to approve the pay package. They're expected to vote on it on November 6. A Delaware judge struck down a (similarly performance-based) 2018 package, and Tesla appealed. The new plan, if approved, would replace the older one if the appeal fails. If Musk hit all of the required benchmarks, his stake in Tesla would grow from 13 percent to 29 percent. Who says the American Dream isn't alive and well?

Elon Musk could become world's first trillionaire with Tesla pay deal

Tesla is promising to award Elon Musk a $1tn (£740bn) payday if he makes the electric car aker the most valuable company of all time. The company unveiled a new pay award scheme on Friday that will hand him hundreds of millions of shares if he can hit a string of ambitious milestones, including making Tesla worth $8.5tn over the next decade. By 2035, Mr Musk would also have to have sold 1m AI robots and have 1m self-driving robotaxis on the road. The deal would multiply Mr Musk's existing $378bn (£280bn) net worth, which already makes him the world's richest person by a wide margin, and make him the world's first trillionaire. Tesla is currently worth just over $1tn. The ambitious pay package would award Mr Musk 12 tranches of shares for hitting a series of market value and business landmarks. The first would be reached when Tesla hits a market capitalisation of $2tn, while he would also have to reach one of a series of other goals, such as the robotaxi or robot target, selling 20m Tesla vehicles, or posting annual profits of $50bn. He would then receive further payouts, equal to 1pc of the company's shares, for hitting escalating objectives up to an $8.5tn valuation. This is more than double the market capitalisation of Nvidia, the world's most valuable company. To hit the final levels of the payout, Mr Musk would have to hit all targets and be involved in planning for his successor. He would be 64 at the end of the 10-year period. Mr Musk, 54, doesn't receive a salary or bonus, meaning that if he fails to achieve the lowest rung of the scheme - doubling Tesla's value - he would receive nothing. The pay award is unprecedented and far higher than a similarly structured $56bn pay scheme in 2018, which itself was the biggest ever. At the time, the targets were seen as close to impossible, but Mr Musk achieved them several years early. Last year, a judge struck down that pay award, leaving Tesla in a legal battle to have it restored. "Simply put, retaining and incentivising Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history," Robyn Denholm, Tesla's chairman, said in a letter to shareholders. Investors will have to approve the award.

Tesla board backs record $1 trillion pay plan for Elon Musk

Elon Musk has never been a conventional CEO, and Tesla's board doesn't want him compensated like one. On Friday, directors proposed a 10-year pay package that could deliver Musk as much as $1 trillion in stock awards if the company clears a set of extraordinary performance hurdles. The deal would grant Musk roughly 423 million Tesla shares, currently worth about $143 billion, but the full value only materializes if Tesla executes on a series of rather ambitious targets. The first tranche would vest when Tesla's market capitalization hits and sustains $2 trillion, with additional tranches tied to every $500 billion increment after that, up to $6.5 trillion. The final tranches vest if Tesla reaches $8.5 trillion in market value -- a target that would make it far and away the most valuable publicly traded company on earth. But valuation alone won't do it. Under the pay package, Tesla must also deliver 20 million vehicles annually, put 1 million autonomous robotaxis into commercial service, deliver 1 million Optimus humanoid robots, and sign up 10 million active subscriptions for its Full Self-Driving software. On the financial side, the bar is just as high: Adjusted EBITDA must start at $50 billion and eventually reach $400 billion over four consecutive quarters, even as Tesla continues to pour billions into AI and robotics R&D. If Musk clears all those hurdles, his ownership stake could more than double -- from about 12% of outstanding shares today to more than 25%. That would give him even greater control over Tesla's direction at a time when the company is trying to reinvent itself as an AI and robotics powerhouse, not just an electric carmaker. For Tesla's board, the calculation is simple: Musk is Tesla. "The biggest asset for Tesla is Musk," Wedbush analyst Dan Ives wrote in a Friday note, maintaining his "Outperform" rating and sky-high $500 price target. He argued the package was "critical to keep Musk at the helm" through what he described as the company's most consequential growth cycle, with autonomy and robotics "front and center." The proxy filing also calls for a nonbinding shareholder vote on a strategic investment in Musk's xAI startup, designed to accelerate Tesla's AI development and create what the company claims could be one of the most powerful AI platforms in the world. Lately, though, Tesla's EV engine has sputtered, and that weakness has only magnified concerns about Musk's attention span. Tesla's second-quarter deliveries fell 13% year over year to 384,122 vehicles, its second consecutive quarterly drop and the sharpest mid-year slowdown since 2022. Revenues slipped 12%, and profit fell 16%, with Europe and China showing the steepest losses. The stumbles come as rivals such as BYD extend their lead in China and European incumbents eat into Tesla's market share. The company's energy-storage business is still growing, but it's nowhere near large enough to offset the shortfall in cars. Against that backdrop, Musk has been increasingly preoccupied with politics and side projects. He accepted a role heading President Donald Trump's Department of Government Efficiency (DOGE), said he was starting a third political party (the "America Party"), name-called the president, and pushed controversial policies on X -- all while Tesla's core business has struggled. Shareholders have noticed. Some have openly pressed Musk to commit at least 40 hours a week to Tesla, worried that his forays into Washington and social media are draining focus at a time when execution is critical. For the board, the trillion-dollar pay package is less a bonus than a tether -- an attempt to bind Musk to Tesla through 2030 and assure investors that the CEO remains fully engaged in the company's make-or-break pivot from EVs to autonomy and AI. That means that this package carries major implications for Tesla's governance and shareholder structure. If Musk meets its ambitious targets, his stake in the company could more than double, consolidating greater control in one individual as Tesla's oversight faces legal scrutiny. A Delaware court voided Musk's previous $56 billion compensation deal in January 2024, ruling that the board failed to exercise sufficient independence in approving it. That decision, now under appeal, forced Tesla to assemble a $29 billion interim award last month while it worked on a long-term plan. The stakes extend beyond compensation. For Tesla, the package is a statement of intent about what the company is trying to become. The company, which once lived or died by Model 3 deliveries, is pitching itself as a leader in artificial intelligence, autonomy, and robotics -- a transition that apparently requires both investor patience and Musk's sustained involvement at the center of the company's evolution, even as he juggles SpaceX, X, and a growing portfolio of AI ventures. The plan now goes to shareholders, with a vote scheduled for Nov. 6. And those shareholders face a familiar question: How much turbulence are they willing to tolerate in exchange for growth? They've long accepted volatility, governance drama, and Musk's distractions so long as Tesla kept climbing. This package asks them to double down. If it passes, it would mark the richest compensation plan in corporate history and a high-stakes bet that Tesla's next act can justify dangling a trillion-dollar prize.

Tesla's new pay package could put Musk on track to become world's first trillionaire

Elon Musk could collect a staggering $1 trillion payout over the next 10 years if Tesla hits an aggressive set of targets that would transform the company from an electric vehicle maker into a global leader in robotics and artificial intelligence, according to a new regulatory filing. Tesla CEO Elon Musk could be in line for a payout of $1 trillion if his electric car company meets a series of extremely aggressive targets over the next 10 years, according to documents released by the company. Tesla, which is leaning heavily into robotics and AI, said in a regulatory filing on Friday that the package has a dozen share tranches that include awards for Musk if targets, ranging from car production to the total value of the company, are met over that time period. Very early in the plan, Tesla would have to reach a market valuation of $2 trillion and achieve 20 million vehicles deliveries. Tesla delivered less than 2 million vehicles in 2024. That milestone would also required a million robotaxis in commercial operation and the delivery of 1 million artificial intelligence bots. Musk needs to remain with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount. Musk has been one of the richest people in the world for several years. Musk would also receive more voting power over Tesla under the proposed plan. The EV company is set to hold its annual shareholders meeting on November 6. Tesla's last shareholders meeting was on June 13 of last year, where investors voted to restore Musk's record $44.9 billion pay package that was thrown out by a Delaware judge earlier that year. A condition of the 11th and 12th tranches of the plan includes Musk coming up with a framework for someone to succeed him as CEO. The goals set out for Musk and Tesla are extremely ambitious given recent tumult at the Texas company. Tesla shares have plunged 25% this year largely due to blowback over Musk's affiliation with President Donald Trump. But Tesla also faces intensifying competition from the big Detroit automakers and particularly from China. Telsa sales have fallen precipitously in Europe after Musk aligned with a far-right political party in German. Sales plunged 40% in July in the 27 European Union countries compared with the year earlier even as sales overall of electric vehicle soared, according to the European Automobile Manufacturers' Association. Meanwhile sales of Chinese rival BYD continued to climb fast, grabbing 1.1% market share of all car sales in the month versus Tesla's 0.7%. In its most recent quarter, Tesla reported that quarterly profits plunged from $1.39 billion to $409 million. Revenue also fell and the company fell short of even the lowered expectations on Wall Street. Investors have grown increasingly worried about the trajectory of the company after Musk had spent so much time in Washington this year, becoming one of the most prominent officials in the Trump administration in its bid to slash the size of the US government. Last month Tesla said that it gave Musk a stock grant of $29 billion as a reward for years of "transformative and unprecedented" growth despite a recent foray into right-wing politics that has hurt its sales, profits and its stock price. The award arrived eight months after a judge revoked Musk's 2018 pay package for a second time, something the company noted in August. Tesla has appealed the ruling. Tesla said at the time that the grant was a "first step, good faith" way of retaining Musk and keeping him focused, citing his leadership of SpaceX, xAI and other companies. Musk said recently that he needed more shares and control so he couldn't be ousted by shareholder activists. Tesla's stock rose nearly 2% in premarket trading.

Elon Musk in line for $1 trillion pay package if Tesla hits aggressive goals over next 10 years

Tesla CEO Elon Musk could be in line for a payout of $1 trillion if his electric car company meets a series of extremely aggressive targets over the next 10 years, according to documents released by the company. Tesla, which is leaning heavily into robotics and AI, said in a regulatory filing on Friday that the package has a dozen share tranches that include awards for Musk if targets, ranging from car production to the total value of the company, are met over that time period. Very early in the plan, Tesla would have to reach a market valuation of $2 trillion and achieve 20 million vehicles deliveries. Tesla delivered less than 2 million vehicles in 2024. That milestone would also required a million robotaxis in commercial operation and the delivery of 1 million artificial intelligence bots. Musk needs to remain with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount. Musk would also receive more voting power over Tesla under the proposed plan. The EV company is set to hold its annual shareholders meeting on Nov. 6. Tesla's last shareholders meeting was on June 13 of last year, where investors voted to restore Musk's record $44.9 billion pay package that was thrown out by a Delaware judge earlier that year. A condition of the 11th and 12th tranches of the plan includes Musk coming up with a framework for someone to succeed him as CEO.

Tesla seeks $1trn pay package for Elon Musk

The proposed 10-year pay deal includes a series of extremely ambitious performance targets, including doubling the company value and delivering a million robotaxis and a million artificial intelligence bots. The world's richest man could be in line for a roughly $1trn pay award. Elon Musk's electric car company, Tesla, is trying to pay him about $1trn over the next decade. Money blog: UK airport ranked worst for fourth year in a row Under the proposal, Mr Musk would receive no salary or bonus but instalments of company shares for hitting ambitious targets around increasing Tesla's market share, sales, revenue and company value. It's hoped that the incentives will drive Mr Musk's performance after he left his role at the US government's Department of Government Efficiency (DOGE) and returned to spending time in the office as Tesla's chief executive. Could he get it? Tesla has regularly missed sales targets and struggled with plans to launch a robotaxi and supply chain woes. It's seeking to move away from producing just electric vehicles and move into robotics and artificial intelligence (AI). But to obtain the share tranches, very early in the plan Tesla would have to reach a market valuation of $2trn, nearly double the current value, and achieve 20 million vehicle deliveries. Over the next decade, Tesla would have to be valued at around $7.5trn, nearly eight times the current worth. Tesla delivered fewer than two million vehicles in 2024. Read more from Sky News: Firms cut jobs at fastest pace since 2021 - Bank of England data More than a quarter of cars sold in August were electric vehicles The deliveries milestone also requires a million robotaxis to be in commercial operation and the delivery of a million artificial intelligence bots. Mr Musk will also need to remain at Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount. A condition of the final, 11th and 12th tranches of the plan involves Mr Musk coming up with a succession plan for his CEO role. As well as getting shares, Mr Musk would also receive more voting rights within Tesla under the proposed plan. Investors will vote on the proposal at Tesla's annual shareholders meeting on 6 November. Just last month, the company board signed off on a $29bn (£21.8bn) share award to Elon Musk after a court blocked an earlier package worth almost double that sum.

Elon Musk in line for $1 trillion pay package if Tesla hits aggressive goals

Tesla is looking for its investors to approve a proposed compensation package for CEO Elon Musk that could be worth almost $1 trillion and is based on the electric vehicle maker hitting certain milestones over the next decade Tesla CEO Elon Musk could be in line for a payout of $1 trillion if his electric car company meets a series of extremely aggressive targets over the next 10 years, according to documents released by the company. Tesla, which is leaning heavily into robotics and AI, said in a regulatory filing on Friday that the package has a dozen share tranches that include awards for Musk if targets, ranging from car production to the total value of the company, are met over that time period. Very early in the plan, Tesla would have to reach a market valuation of $2 trillion and achieve 20 million vehicles deliveries. Tesla delivered less than 2 million vehicles in 2024. That milestone would also required a million robotaxis in commercial operation and the delivery of 1 million artificial intelligence bots. Musk needs to remain with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount. Musk has been one of the richest people in the world for several years. Musk would also receive more voting power over Tesla under the proposed plan. The EV company is set to hold its annual shareholders meeting on Nov. 6. Tesla's last shareholders meeting was on June 13 of last year, where investors voted to restore Musk's record $44.9 billion pay package that was thrown out by a Delaware judge earlier that year. A condition of the 11th and 12th tranches of the plan includes Musk coming up with a framework for someone to succeed him as CEO. The goals set out for Musk and Tesla are extremely ambitious given recent tumult at the Texas company. Tesla shares have plunged 25% this year largely due to blowback over Musk's affiliation with President Donald Trump. But Tesla also faces intensifying competition from the big Detroit automakers and particularly from China. Telsa sales have fallen precipitously in Europe after Musk aligned with a far-right political party in German. Sales plunged 40% in July in the 27 European Union countries compared with the year earlier even as sales overall of electric vehicle soared, according to the European Automobile Manufacturers' Association. Meanwhile sales of Chinese rival BYD continued to climb fast, grabbing 1.1% market share of all car sales in the month versus Tesla's 0.7%. In its most recent quarter, Tesla reported that quarterly profits plunged from $1.39 billion to $409 million. Revenue also fell and the company fell short of even the lowered expectations on Wall Street. Investors have grown increasingly worried about the trajectory of the company after Musk had spent so much time in Washington this year, becoming one of the most prominent officials in the Trump administration in its bid to slash the size of the U.S. government. Last month Tesla said that it gave Musk a stock grant of $29 billion as a reward for years of "transformative and unprecedented" growth despite a recent foray into right-wing politics that has hurt its sales, profits and its stock price. The award arrived eight months after a judge revoked Musk's 2018 pay package for a second time, something the company noted in August. Tesla has appealed the ruling. Tesla said at the time that the grant was a "first step, good faith" way of retaining Musk and keeping him focused, citing his leadership of SpaceX, xAI and other companies. Musk said recently that he needed more shares and control so he couldn't be ousted by shareholder activists.

Elon Musk in line for $1 trillion pay package if Tesla hits aggressive goals over next 10 years

Tesla CEO Elon Musk could be in line for a payout of $1 trillion if his electric car company meets a series of extremely aggressive targets over the next 10 years, according to documents released by the company. Tesla, which is leaning heavily into robotics and AI, said in a regulatory filing on Friday that the package has a dozen share tranches that include awards for Musk if targets, ranging from car production to the total value of the company, are met over that time period. Very early in the plan, Tesla would have to reach a market valuation of $2 trillion and achieve 20 million vehicles deliveries. Tesla delivered less than 2 million vehicles in 2024. That milestone would also required a million robotaxis in commercial operation and the delivery of 1 million artificial intelligence bots. Musk needs to remain with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount. Musk has been one of the richest people in the world for several years. Musk would also receive more voting power over Tesla under the proposed plan. The EV company is set to hold its annual shareholders meeting on Nov. 6. Tesla's last shareholders meeting was on June 13 of last year, where investors voted to restore Musk's record $44.9 billion pay package that was thrown out by a Delaware judge earlier that year. A condition of the 11th and 12th tranches of the plan includes Musk coming up with a framework for someone to succeed him as CEO. The goals set out for Musk and Tesla are extremely ambitious given recent tumult at the Texas company. Tesla shares have plunged 25% this year largely due to blowback over Musk's affiliation with President Donald Trump. But Tesla also faces intensifying competition from the big Detroit automakers and particularly from China. Telsa sales have fallen precipitously in Europe after Musk aligned with a far-right political party in German. Sales plunged 40% in July in the 27 European Union countries compared with the year earlier even as sales overall of electric vehicle soared, according to the European Automobile Manufacturers' Association. Meanwhile sales of Chinese rival BYD continued to climb fast, grabbing 1.1% market share of all car sales in the month versus Tesla's 0.7%. In its most recent quarter, Tesla reported that quarterly profits plunged from $1.39 billion to $409 million. Revenue also fell and the company fell short of even the lowered expectations on Wall Street. Investors have grown increasingly worried about the trajectory of the company after Musk had spent so much time in Washington this year, becoming one of the most prominent officials in the Trump administration in its bid to slash the size of the U.S. government. Last month Tesla said that it gave Musk a stock grant of $29 billion as a reward for years of "transformative and unprecedented" growth despite a recent foray into right-wing politics that has hurt its sales, profits and its stock price. The award arrived eight months after a judge revoked Musk's 2018 pay package for a second time, something the company noted in August. Tesla has appealed the ruling. Tesla said at the time that the grant was a "first step, good faith" way of retaining Musk and keeping him focused, citing his leadership of SpaceX, xAI and other companies. Musk said recently that he needed more shares and control so he couldn't be ousted by shareholder activists. Tesla's stock rose nearly 2% in premarket trading.

Elon Musk in Line for $1 Trillion Pay Package if Tesla Hits Aggressive Goals Over Next 10 Years

Tesla CEO Elon Musk could be in line for a payout of $1 trillion if his electric car company meets a series of extremely aggressive targets over the next 10 years, according to documents released by the company. Tesla, which is leaning heavily into robotics and AI, said in a regulatory filing on Friday that the package has a dozen share tranches that include awards for Musk if targets, ranging from car production to the total value of the company, are met over that time period. Very early in the plan, Tesla would have to reach a market valuation of $2 trillion and achieve 20 million vehicles deliveries. Tesla delivered less than 2 million vehicles in 2024. That milestone would also required a million robotaxis in commercial operation and the delivery of 1 million artificial intelligence bots. Musk needs to remain with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount. Musk would also receive more voting power over Tesla under the proposed plan. The EV company is set to hold its annual shareholders meeting on Nov. 6. Tesla's last shareholders meeting was on June 13 of last year, where investors voted to restore Musk's record $44.9 billion pay package that was thrown out by a Delaware judge earlier that year. A condition of the 11th and 12th tranches of the plan includes Musk coming up with a framework for someone to succeed him as CEO. Tesla's stock rose nearly 2% in premarket trading.

Elon Musk Could Be in Line for a $1 Trillion Tesla Pay Package

Tesla CEO Elon Musk could be in line for a payout of $1 trillion if his electric car company meets a series of extremely aggressive targets over the next 10 years, according to documents released by the company. Tesla, which is leaning heavily into robotics and AI, said in a regulatory filing on Friday that the package has a dozen share tranches that include awards for Musk if targets, ranging from car production to the total value of the company, are met over that time period. Very early in the plan, Tesla would have to reach a market valuation of $2 trillion and achieve 20 million vehicles deliveries. Tesla delivered less than 2 million vehicles in 2024. That milestone would also required a million robotaxis in commercial operation and the delivery of 1 million artificial intelligence bots. Musk needs to remain with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount. Musk has been one of the richest people in the world for several years. Musk would also receive more voting power over Tesla under the proposed plan. The EV company is set to hold its annual shareholders meeting on Nov. 6. Tesla's last shareholders meeting was on June 13 of last year, where investors voted to restore Musk's record $44.9 billion pay package that was thrown out by a Delaware judge earlier that year. A condition of the 11th and 12th tranches of the plan includes Musk coming up with a framework for someone to succeed him as CEO. The goals set out for Musk and Tesla are extremely ambitious given recent tumult at the Texas company. Tesla shares have plunged 25% this year largely due to blowback over Musk's affiliation with President Donald Trump. But Tesla also faces intensifying competition from the big Detroit automakers and particularly from China. Telsa sales have fallen precipitously in Europe after Musk aligned with a far-right political party in German. Sales plunged 40% in July in the 27 European Union countries compared with the year earlier even as sales overall of electric vehicle soared, according to the European Automobile Manufacturers' Association. Meanwhile sales of Chinese rival BYD continued to climb fast, grabbing 1.1% market share of all car sales in the month versus Tesla's 0.7%. In its most recent quarter, Tesla reported that quarterly profits plunged from $1.39 billion to $409 million. Revenue also fell and the company fell short of even the lowered expectations on Wall Street. Investors have grown increasingly worried about the trajectory of the company after Musk had spent so much time in Washington this year, becoming one of the most prominent officials in the Trump administration in its bid to slash the size of the U.S. government. Last month Tesla said that it gave Musk a stock grant of $29 billion as a reward for years of "transformative and unprecedented" growth despite a recent foray into right-wing politics that has hurt its sales, profits and its stock price. The award arrived eight months after a judge revoked Musk's 2018 pay package for a second time, something the company noted in August. Tesla has appealed the ruling. Tesla said at the time that the grant was a "first step, good faith" way of retaining Musk and keeping him focused, citing his leadership of SpaceX, xAI and other companies. Musk said recently that he needed more shares and control so he couldn't be ousted by shareholder activists. Tesla's stock rose nearly 2% in premarket trading. The final deadline for the 2025 Inc. Best in Business Awards is Friday, September 12, at 11:59 p.m. PT. Apply now.

Proposed Tesla pay package could make Musk a trillionaire

Tesla has proposed a new pay package for CEO Elon Musk that could make the world's richest man a trillionaire. The pay package, which is up for consideration at Tesla's annual shareholder meeting in November, would grant Musk about 423 million shares in the company if he meets a series of milestones over the next 10 years. At Tesla's current share price, this amounts to about $145 billion. However, under the agreement, Musk would need to grow the electric vehicle (EV) maker's market capitalization to a massive $8.5 trillion, making the pay package worth about $1 trillion. The company is currently worth nearly $1.1 trillion. The board's lofty goals far exceed even the most valuable firm in today's market, Nvidia, which sits at around $4 trillion. Tesla would also need to deliver 20 million vehicles and 1 million bots, in addition to securing 10 million self-driving subscriptions and putting 1 million robotaxis on the road in order for Musk to secure his trillion-dollar payday. The Tesla board framed its proposal in the context of the race to develop artificial intelligence (AI). While Tesla produces EVs, it has increasingly turned its attention to AI and robotics in recent years. "[T]he Special Committee determined that the failure to retain and incentivize Mr. Musk could put Tesla at risk of losing not only its CEO and leader in the AI field, but also the AI talent that would likely be inclined to leave in the absence of his leadership, as Mr. Musk's leadership is a significant factor in attracting highly skilled talent to Tesla," the board wrote in a securities filing Friday. It also underscored that Musk, who also oversees SpaceX, X and Neuralink, "raised the possibility of prioritizing other ventures" if they couldn't reach an agreement on a new pay package. The new agreement comes after the board announced plans in August to grant the Tesla CEO $29 billion worth of shares as a "good faith" payment while his 2018 pay package remains tied up in court. The earlier agreement, much like the latest proposal, required Musk to meet a series of milestones. After clearing these hurdles, the Tesla CEO became eligible for the package, initially worth about $56 billion. However, a Delaware judge struck down the agreement in January 2024, finding it wasn't negotiated fairly. She rejected a second attempt by the company to approve the pay package last December. Tesla's share price is currently down 8 percent since the beginning of the year, a significant recovery from earlier this year when the company's stock was down more than 40 percent amid Musk's tumultuous tenure in the Trump administration. Tesla has proposed a new pay package for CEO Elon Musk that could make the world's richest man a trillionaire. The pay package, which is up for consideration at Tesla's annual shareholder meeting in November, would grant Musk about 423 million shares in the company if he meets a series of milestones over the next 10 years. At Tesla's current share price, this amounts to about $145 billion. However, under the agreement, Musk would need to grow the electric vehicle (EV) maker's market capitalization to a massive $8.5 trillion, making the pay package worth about $1 trillion. The company is currently worth nearly $1.1 trillion. The board's lofty goals far exceed even the most valuable firm in today's market, Nvidia, which sits at around $4 trillion. Tesla would also need to deliver 20 million vehicles and 1 million bots, in addition to securing 10 million self-driving subscriptions and putting 1 million robotaxis on the road in order for Musk to secure his trillion-dollar payday. The Tesla board framed its proposal in the context of the race to develop artificial intelligence (AI). While Tesla produces EVs, it has increasingly turned its attention to AI and robotics in recent years. "[T]he Special Committee determined that the failure to retain and incentivize Mr. Musk could put Tesla at risk of losing not only its CEO and leader in the AI field, but also the AI talent that would likely be inclined to leave in the absence of his leadership, as Mr. Musk's leadership is a significant factor in attracting highly skilled talent to Tesla," the board wrote in a securities filing Friday. It also underscored that Musk, who also oversees SpaceX, X and Neuralink, "raised the possibility of prioritizing other ventures" if they couldn't reach an agreement on a new pay package. The new agreement comes after the board announced plans in August to grant the Tesla CEO $29 billion worth of shares as a "good faith" payment while his 2018 pay package remains tied up in court. The earlier agreement, much like the latest proposal, required Musk to meet a series of milestones. After clearing these hurdles, the Tesla CEO became eligible for the package, initially worth about $56 billion. However, a Delaware judge struck down the agreement in January 2024, finding it wasn't negotiated fairly. She rejected a second attempt by the company to approve the pay package last December. Tesla's share price is currently down 8 percent since the beginning of the year, a significant recovery from earlier this year when the company's stock was down more than 40 percent amid Musk's tumultuous tenure in the Trump administration.

Elon Musk Receives $1 Trillion Pay Package Proposal From Tesla

Musk is currently the world's richest person with a fortune of $428.4 billion. Tesla has proposed a landmark compensation package that could make CEO Elon Musk the world's first trillionaire. The package, which will be voted on by company shareholders at an annual meeting on Nov. 6, will give Musk up to $1 trillion over 10 years if he meets ambitious targets, such as expanding Tesla's robotaxi operations and boosting the company's market valuation from about $1 trillion to more than $8 trillion. All the compensation would be in the form of Tesla shares, reports the New York Times. If approved, the pay package would grant Musk over 423 million additional shares, increasing his control in Tesla to roughly 25%. Related: Tesla Awards Elon Musk a Massive $29 Billion Pay Package to 'Retain and Incentivize' the CEO "Retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history," wrote Robyn Denholm, chair of the Tesla board, and Kathleen Wilson-Thompson, a director on the board, in a letter to shareholders that was reviewed by The Times. Musk pushed the board to arrange a new compensation package for him, reports Yahoo! Finance, saying that he would focus his time and energy on AI and robotics if he didn't have roughly 25% voting control at Tesla. "The new agreement underscores Musk's iron grip on the automaker, despite the myriad demands on his time," writes Dana Hull in Bloomberg. Hull points out that in addition to Tesla, Musk oversees four other companies: SpaceX, xAI, Neuralink, and the Boring Co. Tesla shares rose 1.9% this morning. Tesla stock has fallen 16% this year. While critics like Brad Lander, New York City's comptroller overseeing pension funds invested in Tesla, say that "Tesla's captive board once again is rewarding Elon at investors' expense," the pay package reveals the incredible value that businesses place on leadership. On any scale of operation and compensation, experts note that tying key leadership rewards to stretch goals can motivate exceptional performance. In an article for Entrepreneur, Timothy Sykes writes: "The more ambitious the goal, the more motivated you will be to achieve it. SMART goals are great if you know exactly how you're going to get from point A to point B, but a lot of times, life just doesn't work that way. It's much better to just start with a massive and ambitious goal and work it out from there."

Tesla to award Musk $1 trillion if company achieves some lofty targets

Tesla's board has proposed a groundbreaking compensation plan for CEO Elon Musk, potentially valued at $1 trillion if ambitious targets are met. This unprecedented package highlights Tesla's confidence in Musk's leadership as the company transitions into a technology powerhouse, with a focus on AI and autonomous systems. Tesla's board has proposed a new compensation plan for CEO Elon Musk valued at about $1 trillion upon achieving certain lofty targets. The proposed package, which would be the largest in corporate history if approved, underscores Tesla's bet on Musk to steer its transformation from a carmaker into a technology powerhouse. The plan is expected to be tied to ambitious performance milestones, including growth in AI-driven products and autonomous systems. Tesla's board earlier this year approved an interim compensation package for CEO Elon Musk worth about $29 billion in restricted stock, designed to keep him at the helm through at least 2030 as the company pivots to an AI-first strategy.

Tesla to award Musk $1 trillion if company achieves some lofty targets - The Economic Times

Tesla's board has proposed a groundbreaking compensation plan for CEO Elon Musk, potentially valued at $1 trillion if ambitious targets are met. This unprecedented package highlights Tesla's confidence in Musk's leadership as the company transitions into a technology powerhouse, focusing on AI and autonomous systems.Tesla's board has proposed a new compensation plan for CEO Elon Musk valued at about $1 trillion upon achieving certain lofty targets. The proposed package, which would be the largest in corporate history if approved, underscores Tesla's bet on Musk to steer its transformation from a carmaker into a technology powerhouse. The plan is expected to be tied to ambitious performance milestones, including growth in AI-driven products and autonomous systems. Tesla's board earlier this year approved an interim compensation package for CEO Elon Musk worth about $29 billion in restricted stock, designed to keep him at the helm through at least 2030 as the company pivots to an AI-first strategy.

Tesla offers Elon Musk staggering pay package that could reach $1...

Tesla unveiled a staggering new pay package for CEO Elon Musk that could reach an unprecedented $1 trillion -- potentially reigniting one of the corporate world's fiercest battles over executive compensation. The 10-year plan, disclosed in a proxy filing Friday, ties Musk's payout to a dozen milestones, including growing Tesla's market value more than eightfold to $8.5 trillion and hitting ambitious targets in robotaxis, robotics and artificial intelligence. Tesla is currently worth about $1.09 trillion. If Musk hits every benchmark, his stake would climb to at least 25% of the company, giving him roughly 29% voting control, according to the proxy filing cited by Bloomberg News. "Simply put, retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history," board chair Robyn Denholm and director Kathleen Wilson-Thompson wrote in a letter to shareholders. The plan arrives after a Delaware court in January struck down Musk's record $56 billion compensation package approved in 2018, calling it unfair and riddled with conflicts of interest. Chancellor Kathaleen McCormick ruled that Musk wielded undue influence over Tesla's board and that shareholders weren't properly informed about the process. Tesla is appealing that decision to the Delaware Supreme Court, with oral arguments set for Oct. 15. In the meantime, Musk received an interim stock award in August valued at about $30 billion. The new package, with a base grant valued at $87.8 billion, would swell toward $1 trillion if Musk clears every hurdle. Targets include selling 20 million vehicles, putting 1 million robotaxis in service, delivering 1 million humanoid robots and boosting adjusted EBITDA to $400 billion. Musk, 54, has pushed the board for a new deal, warning he could pursue AI and robotics ventures outside Tesla unless he secured around 25% voting control. Earlier this year, his artificial intelligence startup xAI absorbed social media platform X, formerly Twitter, which Musk purchased by selling a chunk of Tesla stock. The board also disclosed a shareholder proposal to consider Tesla taking a stake in xAI, an idea Musk has floated publicly. While the filing touts Musk's leadership, it acknowledges his "high public profile attracts significant scrutiny" and that some question whether his outside interests and political activities distract from Tesla. Those distractions have been front and center. Musk was President Donald Trump's biggest financial backer in the 2024 election and briefly joined efforts to reshape the federal government, sparking backlash that included vandalism at Tesla stores and charging stations. Tesla's vehicle deliveries fell 13% in the first half of this year, among its worst results in years. In May, Musk stepped down from his government role and vowed to spend more time at Tesla. The company soon launched its long-promised robotaxi service in Austin, which Musk has pitched as the cornerstone of its future business. Tesla shares rose 1.9% on Friday morning but remain down 16% this year. The stock reached a peak valuation of $1.5 trillion in late 2024. The shareholder vote on Musk's new package will take place at Tesla's annual meeting in November. If approved and fully earned, it would represent the largest payout ever awarded to a corporate executive, dwarfing all prior records.

Elon Musk in line for trillion-dollar pay package if Tesla hits 10-year goals | BreakingNews.ie

Tesla chief Elon Musk could be in line for a payout of one trillion dollars (£742 billion) if his electric car company meets a series of aggressive targets over the next 10 years, according to documents released by the company. Tesla, which is leaning heavily into robotics and AI, said in a regulatory filing on Friday that the package has a dozen share tranches that include awards for Mr Musk if targets, ranging from car production to the total value of the company, are met over that time period. Very early in the plan, Tesla would have to reach a market valuation of two trillion dollars (£1.48 trillion) and achieve 20 million vehicle deliveries. Tesla delivered fewer than two million vehicles in 2024. That milestone would also require a million robotaxis in commercial operation and the delivery of one million artificial intelligence bots. Mr Musk needs to remain with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount. He would also receive more voting power over Tesla under the proposed plan. The EV company is set to hold its annual shareholders meeting on November 6. Tesla's last shareholders meeting was on June 13 last year, where investors voted to restore Mr Musk's record 44.9 billion-dollar (£33.3 billion) pay package that was thrown out by a Delaware judge earlier that year. A condition of the 11th and 12th tranches of the plan includes Mr Musk coming up with a framework for someone to succeed him as chief executive.

Elon Musk in line for $1 trillion pay package if Tesla hits aggressive goals over next 10 years

Tesla CEO Elon Musk could be in line for a payout of $1 trillion if his electric car company meets a series of extremely aggressive targets over the next 10 years, according to documents released by the company. Tesla, which is leaning heavily into robotics and AI, said in a regulatory filing on Friday that the package has a dozen share tranches that include awards for Musk if targets, ranging from car production to the total value of the company, are met over that time period. Very early in the plan, Tesla would have to reach a market valuation of $2 trillion and achieve 20 million vehicles deliveries. Tesla delivered less than 2 million vehicles in 2024. That milestone would also required a million robotaxis in commercial operation and the delivery of 1 million artificial intelligence bots. Musk needs to remain with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount. Musk would also receive more voting power over Tesla under the proposed plan. The EV company is set to hold its annual shareholders meeting on Nov. 6. Tesla's last shareholders meeting was on June 13 of last year, where investors voted to restore Musk's record $44.9 billion pay package that was thrown out by a Delaware judge earlier that year. A condition of the 11th and 12th tranches of the plan includes Musk coming up with a framework for someone to succeed him as CEO. Tesla's stock rose nearly 2% in premarket trading.

Tesla to award Musk $1 trillion - depending on performance

STORY: Tesla's board has proposed a $1 trillion compensation plan for CEO Elon Musk. It would be the largest corporate pay package in history. And underscore the hold Musk has over the carmaker as it attempts to transform into an AI and robotics powerhouse. The world's richest person has consistently said he needs more of a stake in the company. Even as a legal battle over his 2018 pay package - then valued $56 billion - continues. The newly proposed award is roughly 18 times the size of the contested plan and close to the company's current market valuation. Tesla's board earlier this year approved an interim compensation package for Musk worth about $29 billion in restricted stock. It aims to keep him at the helm through at least 2030. The new plan highlights Tesla's reliance on Musk as it faces slowing EV demand. As well as rising competition from Chinese rivals and pressure to deliver on its AI ambitions. Supporters of Musk's enhanced pay package have argued that his compensation plans have aligned his incentives with long-term growth. Meanwhile critics warn of potential dilution and governance risks.