Tesla has filed a new compensation plan for CEO Elon Musk that could make him the world’s first trillionaire if the company meets a series of long-term performance targets, according to a regulatory filing on Friday.
The package, to be voted on by shareholders at Tesla’s annual meeting on Nov. 6, is structured across 12 tranches of stock awards. To unlock them, Tesla must simultaneously hit aggressive financial and operational milestones, including delivering 20 million vehicles per year, reaching a market capitalization of $8.5 trillion, deploying one million robotaxis, and producing one million Optimus humanoid robots.
Tesla delivered fewer than 2 million vehicles in 2024, with no robotaxis or Optimus robots yet in production. The plan, the company said, is aimed at aligning Musk’s incentives with Tesla’s ambitions to expand beyond electric cars into autonomous driving, robotics and artificial intelligence.
If all goals are achieved, Musk’s Tesla holdings would rise to about 25% voting power. He must remain with the company for at least 7½ years to claim any shares and the full 10 years to access the maximum payout. The agreement also ties later tranches to Musk helping the board establish a CEO succession plan.
At current valuation, the package is worth $87.8 billion, but could grow to about $1 trillion if all performance thresholds are met. Combined with existing stakes and prior awards, Musk’s Tesla holdings could reach an estimated $2.5 trillion.
The plan would surpass Musk’s 2018 pay deal, once valued at around $55 billion. That earlier package was struck down by a Delaware court over concerns about board independence, though Tesla has appealed, with arguments scheduled for October.
“The award is essential to keep Elon’s focus on Tesla during this pivotal period of growth,” the board said in its filing.