Tesla has unveiled a bold new 10-year compensation plan for CEO Elon Musk — a package that could ultimately be worth as much as $1 trillion. The proposal comes at a time when Tesla’s car business is slowing, yet the company is aggressively shifting focus toward humanoid robotics, AI, and long-term innovation.

The Details of Musk’s Proposed Package

Under the plan, Musk would receive 423 million additional Tesla shares, raising his stake to about 25% ownership and voting control. This move directly addresses Musk’s earlier threats to leave Tesla if he did not secure more power within the company.

The plan’s central benchmark requires Tesla to grow its overall market valuation from $1 trillion to $8 trillion. If achieved, this would make Tesla one of the most valuable companies in history, surpassing many tech giants.

A Repeat of History?

This new proposal arrives only one month after Tesla announced a $29 billion pay package meant to replace an earlier deal struck down by a Delaware judge. That package was deemed excessive and lacking shareholder safeguards.

Tesla’s board, however, continues to defend Musk’s leadership as essential to the company’s trajectory.

Tesla’s Vision: “Sustainable Abundance”

In its filing with the Securities and Exchange Commission (SEC), Tesla framed the package as necessary to achieve a broader mission. The company claims it is at a “critical inflection point” for society and envisions ushering in an era of:

Affordable, scalable technologies
Autonomous goods and services
Humanoid robotics and AI-powered solutions

Tesla argues that Musk’s “singular vision” is vital to turning this ambition into reality.

The Master Plan Part IV

Tesla also pointed to its recently published “Master Plan Part IV.” While Musk’s involvement in unveiling the plan was minimal, the company credited him as the driving force behind its long-term direction.

The plan is light on details but emphasizes:

Expanding AI and robotics.
Building scalable clean-energy solutions.
Democratizing access to autonomous technologies.

Shareholder Vote

The shareholder vote on Musk’s $1 trillion package will take place during Tesla’s annual meeting later this year. The outcome will be closely watched, not only by investors but also by regulators, labor groups, and corporate governance experts.

Supporters see the package as an investment in a visionary leader. Critics argue it is a staggering overreach that could give Musk too much unchecked power.

FAQs

1. How much could Elon Musk earn from the new Tesla plan?

If benchmarks are met, Musk’s package could be worth up to $1 trillion over 10 years, making it the largest compensation deal in corporate history.

2. What benchmarks does Musk need to hit?

Tesla must raise its market valuation from $1 trillion to $8 trillion and achieve other growth and innovation targets.

3. Why is Musk demanding more voting power?

Musk has threatened to leave Tesla if he doesn’t secure around 25% control, which he claims is necessary to drive Tesla’s long-term vision.

4. What’s controversial about this package?

Critics argue the package is excessive, could reduce shareholder influence, and follows a previous deal that was struck down by a Delaware judge.

5. When will the vote take place?

Shareholders will vote on the proposal at Tesla’s annual meeting later this year, with results expected to draw global attention.

Tesla Proposes Historic $1 Trillion Pay Package for Elon Musk