Tesla unveiled a staggering new pay package for CEO Elon Musk that could reach an unprecedented $1 trillion — potentially reigniting one of the corporate world’s fiercest battles over executive compensation.
The 10-year plan, disclosed in a proxy filing Friday, ties Musk’s payout to a dozen milestones, including growing Tesla’s market value more than eightfold to $8.5 trillion and hitting ambitious targets in robotaxis, robotics and artificial intelligence.
Tesla is currently worth about $1.09 trillion.
If Musk hits every benchmark, his stake would climb to at least 25% of the company, giving him roughly 29% voting control, according to the proxy filing cited by Bloomberg News.
Musk warned Tesla’s board he would leave the company to “pursue his other interests” unless he secured about 25% voting control and was “fully paid for his past services,” echoing his prior signals that he’d take his AI and robotics ambitions elsewhere without that stake, according to Friday’s proxy filing detailed by Bloomberg.
“Simply put, retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history,” board chair Robyn Denholm and director Kathleen Wilson-Thompson wrote in a letter to shareholders.
The plan arrives after a Delaware court in January struck down Musk’s record $56 billion compensation package approved in 2018, calling it unfair and riddled with conflicts of interest.
Chancellor Kathaleen McCormick ruled that Musk wielded undue influence over Tesla’s board and that shareholders weren’t properly informed about the process.
Tesla is appealing that decision to the Delaware Supreme Court, with oral arguments set for Oct. 15. In the meantime, Musk received an interim stock award in August valued at about $30 billion.
The new package, with a base grant valued at $87.8 billion, would swell toward $1 trillion if Musk clears every hurdle. Targets include selling 20 million vehicles, putting 1 million robotaxis in service, delivering 1 million humanoid robots and boosting adjusted EBITDA to $400 billion.
Musk, 54, has pushed the board for a new deal, warning he could pursue AI and robotics ventures outside Tesla unless he secured around 25% voting control. Earlier this year, his artificial intelligence startup xAI absorbed social media platform X, formerly Twitter, which Musk purchased by selling a chunk of Tesla stock.
The board also disclosed a shareholder proposal to consider Tesla taking a stake in xAI, an idea Musk has floated publicly.
While the filing touts Musk’s leadership, it acknowledges his “high public profile attracts significant scrutiny” and that some question whether his outside interests and political activities distract from Tesla.
Those distractions have been front and center.
Musk was President Donald Trump’s biggest financial backer in the 2024 election and briefly joined efforts to reshape the federal government, sparking backlash that included vandalism at Tesla stores and charging stations.
Tesla’s vehicle deliveries fell 13% in the first half of this year, among its worst results in years.
In May, Musk stepped down from his government role and vowed to spend more time at Tesla. The company soon launched its long-promised robotaxi service in Austin, which Musk has pitched as the cornerstone of its future business.
Tesla shares rose 1.9% on Friday morning but remain down 16% this year. The stock reached a peak valuation of $1.5 trillion in late 2024.
The shareholder vote on Musk’s new package will take place at Tesla’s annual meeting in November. If approved and fully earned, it would represent the largest payout ever awarded to a corporate executive, dwarfing all prior records.
The Post has sought comment from Tesla and Musk.
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