Tesla’s board has rolled out a landmark compensation proposal for CEO Elon Musk that could potentially make him the world’s first trillionaire. The all-stock package is structured to vest across 12 tranches, contingent on Musk delivering on a sweeping and ambitious set of performance targets.
To earn the full reward, Musk must guide Tesla’s market valuation from around $1.1 trillion (≈ ₹9.7 lakh crore) to an astonishing $8.5 trillion (≈ ₹75 lakh crore) within a decade. The package also hinges on achieving major operational goals, like selling 20 million vehicles annually, launching 1 million robotaxis into commercial service, producing 1 million humanoid robots and generating $400 billion in adjusted EBITDA over consecutive quarters
These goals reflect the board’s strategy to anchor Tesla’s future around advanced AI, robotics, and autonomous services.
Retention and control underlined amid reputational risks
Beyond delivering financial upside, the package is designed to secure Musk’s long-term leadership—requiring him to stay with Tesla for at least 7.5 years, with the full reward payout stretchable to 10 years. The plan also enhances his voting authority within the company, a clear priority for Musk amid ongoing governance battles.
Tesla’s board justified the extraordinary scope of the package as essential to retaining Musk’s vision, especially at a time when competition is rising, sales have declined—particularly in Europe—and Musk’s public and political activities have stirred controversy.
Upcoming shareholder vote and tough governance scrutiny
Approval of this bold compensation framework rests in the hands of Tesla shareholders at the upcoming November annual meeting, now held in Texas. Supporters argue it keeps the company aligned with Musk’s leadership and innovation. Critics warn that the massive dilution, concentration of control, and the sheer scale of the package represent potential governance risks and may amplify concerns around accountability.
Still, board leaders emphasize that Musk remains Tesla’s most indispensable asset—even amid headwinds, doubters, and shifting market sentiment.