Tesla’s board is betting that no one but Elon Musk can transform the automaker into the world’s most valuable company. To keep him in place, it has proposed a record-breaking compensation package that could eventually hand Musk $1 trillion if he clears a daunting list of financial, operational, and strategic milestones. Yes, that’s one followed by 12 zeros or $1,000,000,000,000 which is approximately 850 billion in euroes.
The proposal, filed ahead of Tesla’s November shareholder meeting, would give Musk stock options worth up to 12 percent of the company if Tesla can boost its market capitalization nearly eightfold: to $8.5 trillion. At that valuation, Tesla would be worth more than twice Nvidia, currently the world’s most valuable company.
1 million robotaxis
But Musk’s road to this record reward isn’t a walk in the park. It is structured in twelve tranches, with each tied to both market cap targets and operational milestones.
The company wants Musk to deliver 20 million vehicles annually (ten times the current rate), deploy 1 million autonomous robotaxis, sell 1 million Optimus humanoid robots, and secure 10 million subscriptions to its Full Self-Driving system. Tesla would also need to hit $400 billion in adjusted earnings (EBITDA).
In addition, Musk must remain with Tesla for at least a decade, either as CEO or in another top executive role overseeing product and operations. He is also required to participate in long-term succession planning, with the board stating that his input is “critical” to ensuring leadership continuity.
Board under fire
The board’s generous paycheck comes as Tesla is wrestling with its most difficult stretch in years. Sales have declined for two consecutive years, earnings are under pressure, and the brand’s reputation has suffered due to Musk’s involvement in Donald Trump’s administration and his creation of a new political party.
A Delaware judge earlier this year struck down Musk’s prior $56 billion (€47.6 billion) pay package, calling it “unfathomable” and ruling that Tesla’s board was too deferential to its CEO. That decision prompted Tesla to reincorporate in Texas, where corporate law offers more protection from legal challenges.
Still, the board insists Musk remains indispensable. “The growth that seems impossible today can be achieved through new ideas, better technology, and more innovation,” Chair Robyn Denholm wrote in a letter to shareholders. “Keeping Elon is essential to becoming the most valuable company in history.”
‘Money grab’
Not everyone is convinced. Union leaders and public pension funds have urged shareholders to reject what one called Musk’s “money grab.” They argue that these funds would be better spent on R&D or acquisitions.
Despite the frowning, analysts expect the package to win shareholder approval. Tesla’s most prominent investors supported Musk’s last major award, and Musk himself controls more than 400 million votes.
If successful, Musk would not only cement his status as the world’s richest person but also become the first trillionaire in history — a title as ambitious as the goals Tesla must hit to get him there.
