Tesla Proposes Historic $1 Trillion Compensation Plan for CEO Elon Musk

Tesla has unveiled a proposed compensation package for Chief Executive Officer Elon Musk that could be worth up to $1 trillion, a deal that would be the largest in corporate history and potentially make him the world’s first trillionaire.

According to details released on Friday, the package is structured around a series of ambitious performance and market capitalization targets. If approved by shareholders, Musk would be granted stock options amounting to roughly 12 percent of Tesla’s outstanding shares, distributed across 12 tranches. Each tranche would vest only if Tesla reaches specific milestones, beginning with a $2 trillion market valuation and extending to as high as $8.5 trillion by 2035.

In addition to financial goals, the plan sets out operational benchmarks, including the delivery of 20 million vehicles annually, the launch of 1 million robotaxis, 10 million full self-driving subscriptions, and the deployment of 1 million humanoid robots.

The package also requires the establishment of a succession plan, underscoring concerns about Tesla’s heavy reliance on Musk’s leadership.

While Tesla’s board has defended the deal as a reflection of Musk’s pivotal role in the company’s rise and continued innovation in electric vehicles, autonomy, and robotics, the proposal has sparked debate. Supporters argue the package aligns Musk’s incentives with shareholder value creation, while critics warn that the sheer scale underscores issues of corporate governance and wealth concentration.

The proposal will be put to a shareholder vote at Tesla’s annual general meeting on November 6, 2025. If approved and successfully achieved, the package could cement Musk’s place not only as the richest individual on the planet but also as the first to cross the trillion-dollar threshold in personal net worth.