Tesla propose a new performance-based pay package for its CEO, Elon Musk, valued at nearly $1 trillion

Tesla has announced a new pay plan for its CEO that could increase his voting ￰0￱ proposal is a performance-based package valued at almost $1 trillion if all performance targets are ￰1￱ ambitious plan has been designed around financial and market milestones, which, if Tesla CEO meets them, may grant him up to $975 ￰2￱ would receive the package in a series of stock grants that increase his stake in the company, significantly driving up his voting rights among the board ￰3￱ analysts noted that the plan may consolidate Musk’s influence in the company and cited concerns over corporate governance and shareholder protections. Musk’s $1 trillion Tesla pay plan tied to $8.5T market capitalization The latest proposal follows the July-approved $29 billion in restricted stock granted to ￰4￱ grant was intended to offset a setback early this year when a Delaware Judge invalidated Elon Musk’s 2018 compensation plan, which had been valued at over $50 ￰5￱ award given to Musk in July was framed as a temporary solution to retain Musk’s commitment to the company while they seek a longer-term plan.

Tesla’s board unveils a record $1 trillion pay package for Elon Musk 💰 No ￰6￱ cash ￰7￱ earns 423M shares only if Tesla hits audacious targets: •Market cap → $8.5T •20M cars delivered •1M robotaxis & Optimus bots •$400B EBITDA Shareholder vote: Nov 6. — Nigel D'Souza (@Nigel__DSouza) September 5, 2025 Tesla’s Board of Directors argued that the new proposed package is necessary to ensure Musk remains focused and committed to the company following heightened competition in the EV and AI ￰8￱ acknowledged Musk’s leadership, saying he has been instrumental in the company’s rise from a niche automaker to joining the league of the world’s most valuable ￰9￱ filing shows that the new plan would give Musk additional voting power through a boost in his stock ￰10￱ would receive no salary or cash bonus; instead, he would earn 423 million shares if Tesla achieved specific ￰11￱ milestones include a market cap of $8.5 trillion, 20 million cars delivered, 1 million robotaxis and Optimus bots offered, and $400 billion in EBITDA over the next ￰12￱ move could grant the CEO more control over strategic decisions and limit the influence of other ￰13￱ critics have criticized the plan, saying it could weaken the independence of the board and potentially increase risk for ￰14￱ EV maker also disclosed that shareholders will be asked to vote on whether the company should invest in Musk’s AI startup, xAI, which he founded in ￰15￱ Robotaxi pioneer has already incorporated some of xAI’s technologies into its ￰16￱ noted that a direct financial commitment to xAI would deepen the existing ties between the two entities.

However, the firm raised concerns about conflicts of interest between Musk’s various business ventures. Tesla’s stock jumps by 2.7% today following the proposal Tesla stock has jumped by 2.7% today, trading at $347.5 at the time of writing. However, YTD, the stock remains down by 13.9%, primarily influenced by the slowed growth in electric vehicle demand and rising competition from Chinese automakers such as ￰17￱ shareholders have also expressed concerns that Musk’s attention is divided across too many ￰18￱ reported recently that the EV maker faces stiff competition in India as high tariffs drove up the costs of its Model Y EV to over $69,751. Chinese rival BYD’s sales surged compared to Tesla’s despite similar market conditions.

Tesla’s reliance on brand recognition rather than aggressive marketing limited the company’s sales in the ￰19￱ firm has also lost ground in China, with only a 4% market share compared to BYD’s 29%. If approved, the package would mark the largest ever executive compensation arrangement in the ￰20￱ has also opened a series of talks across the industry on Musk’s role at Tesla and the balance between his power and the board’s ￰21￱ board maintained that the firm would benefit if Must meets the set targets as the resulting stock would outweigh the effects of new grants to the ￰22￱ seen where it ￰23￱ in Cryptopolitan Research and reach crypto’s sharpest investors and builders.