TLDR
- Tesla proposes $1 trillion compensation package for Elon Musk, largest in corporate history
- Plan requires Tesla to reach $8.5 trillion market value over 10 years
- Musk must deliver 20 million vehicles annually and 1 million robotaxis
- Package would increase Musk’s stake to 25% from current 13%
- Tesla shares rose 1.9% in premarket trading on the news
Tesla has proposed the largest CEO compensation package in corporate history. The electric vehicle maker wants to pay Elon Musk up to $1 trillion over the next decade.
The board filed details Friday showing the massive pay structure. Musk would receive no salary or cash bonus under the plan.
Instead, everything depends on Tesla hitting extreme growth targets. The company must reach a market value of $8.5 trillion from its current $1 trillion valuation.
Tesla shares jumped 1.9% in premarket trading after the announcement. The stock remains down 16% for the year despite recent gains.

The package replaces Musk’s previous $56 billion deal from 2018. A Delaware court struck down that earlier compensation, calling it excessive.
Market Cap Targets Demand Massive Growth
The plan sets 12 separate milestones Tesla must achieve. Each combines market capitalization targets with operational benchmarks.
Reaching $8.5 trillion would make Tesla more than twice as valuable as Nvidia. The chip giant currently holds the title of world’s most valuable company.
Tesla peaked at about $1.5 trillion in late 2024. Growing to $8.5 trillion means adding roughly $7.5 trillion in value.
Musk’s ownership would increase to at least 25% if he earns all tranches. He currently holds about 13% of Tesla stock.
The CEO has demanded this larger stake repeatedly. He threatened to pursue AI projects elsewhere without roughly 25% voting control.
Operational Milestones Set Sky-High Expectations
Tesla isn’t just betting on stock price appreciation. The company set specific business targets that dwarf current operations.
Musk must deliver 20 million Tesla vehicles annually. The company sold about 1.8 million cars in 2024.
The plan requires deploying 1 million robotaxis in commercial service. Tesla launched its robotaxi program in June with just a handful of vehicles in Austin.
Other targets include delivering 1 million Optimus humanoid robots and reaching $400 billion in adjusted earnings. These robots currently exist only as prototypes.
Musk must remain as CEO or in an executive role to receive the compensation. The final tranches also require developing a succession plan.
The board acknowledged concerns about Musk’s divided attention. He runs four other companies and recently worked in the Trump administration.
Tesla struggled during Musk’s government stint, reporting weak quarterly results and declining vehicle deliveries.
Chair Robyn Denholm said keeping Musk is “fundamental to Tesla achieving these goals and becoming the most valuable company in history.”
The company moved from Delaware to Texas in 2024 after court battles over CEO compensation. Tesla also changed bylaws to prevent small shareholders from filing lawsuits.