Tesla’s board is proposing a massive new pay package for CEO Elon Musk, which could reach up to $1 trillion over the next decade. This would be one of the largest compensation packages ever.
According to a recent regulatory filing, they plan to offer Musk about 423 million shares. Right now, those shares are worth around $143 billion, but Musk would need to meet ambitious goals for Tesla’s growth.
The board stated that Tesla lacks a long-term incentive plan for Musk. They believe it’s essential to keep him focused on the company, especially during this crucial time.
For Musk to earn the full package, Tesla must hit a market cap of $8.5 trillion, about eight times its current value. Achieving this would also require significant operational milestones. The company aims to deliver 20 million vehicles, produce 1 million self-driving “robotaxis,” and develop 1 million humanoid robots, known as Optimus.
Wedbush analyst Dan Ives commented that this move is critical to ensure Musk’s leadership through 2030. He emphasized that Tesla is nearing a pivotal stage in its growth, focusing on autonomous technology and robotics.
Musk’s compensation history has been controversial. Back in 2018, Tesla investors sued over his $56 billion pay package, claiming breaches of fiduciary duties. A Delaware judge ordered Tesla to revoke that award.
Despite ambitions for future growth, Tesla’s vehicle sales saw a rare decline in 2024, dropping 1% from the previous year—the first annual drop in 12 years. Their stock hit a rough patch in 2025, although it has dramatically increased by 54% over the last year and 143% over the past five years.
In the broader context, the challenges Tesla faces could reflect shifts in the electric vehicle market and consumer behavior. While demand for electric vehicles is rising, competition is growing, and economic conditions are evolving. Such dynamics might influence future sales and production targets.
Companies in the electric vehicle sector have reported mixed results recently. According to a recent industry study, 65% of consumers consider factors like price and availability when choosing electric vehicles, showing that Tesla will need to adapt strategically to maintain its lead.
For more insights on Tesla’s growth strategy and market trends, you can refer to trusted sources like Reuters and Bloomberg.
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