San Francisco, September 5, 2025 — Tesla’s board has unveiled a jaw-dropping compensation proposal that could award CEO Elon Musk up to US$1 trillion in shares—an unprecedented move in corporate compensation history. The proposal hinges entirely on future performance, tying payouts to ambitious milestones such as expanding Tesla’s market value to between US$8.5–8.6 trillion. Achieving that would require a more than eight-fold increase over Tesla’s present valuation.
The ambitious plan would grant Musk up to 12% of Tesla’s stock, potentially amounting to 423 million shares vested gradually. The awards are structured in 12 tranches, each unlocked upon achieving specific targets. Among these are the delivery of 20 million vehicles, deployment of one million robotaxis, one million AI-based humanoid robots, elevating profits to US$400 billion, and selling 10 million full self-driving subscriptions. Musk would receive no salary or cash bonus—only stock that vests with tangible achievement.
If fully realized, this package would elevate Musk’s influence significantly—potentially boosting his voting stake from roughly 13% to nearly 25% after dilution and taxes. The proposal was reviewed by a special committee of independent directors and aims to ensure Musk remains CEO through at least 2030. Shareholder voting on the plan is slated for the November 6 annual meeting in Austin, Texas.
Reactions are sharply divided. Veteran investor Peter Anderson expressed caution, noting Musk’s history of branching out into ventures that may distract from Tesla’s core mission, while analysts like Dan Ives of Wedbush argue the plan aligns Musk’s long-term interests with Tesla’s future growth in AI and robotics.
Tesla shares reacted positively to the news, climbing roughly 2% in pre-market trading—indicative of investor optimism despite the governance concerns this colossal package raises.
