Tesla Board Proposes $1 Trillion Performance-Based Pay Package for Elon Musk

Tesla's board of directors has proposed a new compensation plan for CEO Elon Musk, potentially worth up to $1 trillion over the next decade. The plan is contingent upon Tesla achieving significant growth milestones, including increasing its market capitalization to $8.5 trillion by 2035, up from its current valuation of approximately $1 trillion.

The proposed package would grant Musk up to 12% of Tesla's stock, divided into 12 tranches. Each tranche would vest upon the achievement of specific operational and financial targets. These targets include delivering 20 million vehicles annually, producing 1 million autonomous robotaxis, delivering 1 million Optimus humanoid robots, and reaching an adjusted EBITDA of $400 billion.

This proposal comes as Tesla shifts its focus towards autonomous technology and robotics, aiming to transform into an AI and robotics powerhouse. The board emphasized that retaining and incentivizing Musk is fundamental to achieving these ambitious goals.

The compensation plan will be presented to shareholders for approval at Tesla's annual meeting in November. If approved, it would represent one of the largest executive pay packages in corporate history.