Tesla Unveils $1 Trillion Compensation Plan for Musk, Pending Shareholder Vote

Tesla has unveiled a record-shattering compensation plan for its Chief Executive Officer, Elon Musk, which could be worth more than $1 trillion, provided the company achieves unprecedented growth over the next decade.

The proposal, disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) on Friday, outlines a shareholder vote in November to determine whether Musk should receive up to 12 percent of additional company shares if Tesla hits ambitious performance targets.

According to the filing, Musk would only qualify for the full award if Tesla’s market capitalization surges to at least $8.5 trillion by 2035. The electric vehicle maker’s current valuation stands slightly above $1 trillion, a figure that has slipped in recent months following weaker-than-expected earnings reports.

If approved, the package would be the largest corporate compensation deal in history, dwarfing Musk’s previous $56 billion stock option plan, which itself drew scrutiny and legal challenges.

Tesla’s board of directors described the proposal as a way to secure Musk’s leadership and incentivize his commitment to transformative technologies, including self-driving software, humanoid robotics, and artificial intelligence platforms.

“This plan ties Mr. Musk’s compensation directly to extraordinary value creation for our shareholders,” the company said.

However, the plan is already generating controversy. Critics argue that the size of the payout underscores the growing disparity in executive compensation, especially given Tesla’s recent struggles in global markets. Some analysts also question whether Musk’s outspoken political positions including his public alignment with far-right figures have dented consumer sentiment and weighed on sales.

Still, supporters contend that Musk’s track record of innovation and his central role in Tesla’s identity make him indispensable.

“Without Musk, there is no Tesla,” said Dan Ives, a Wall Street analyst at Wedbush Securities. “The board is betting that keeping him fully engaged will be worth every penny.”

The shareholder vote, scheduled for November, is expected to draw intense debate among investors, corporate governance experts, and policymakers. If passed, the deal could cement Musk’s place not only as the world’s richest individual but also as the recipient of the most audacious compensation package in corporate history.