Tesla has unveiled a $1 trillion pay package for CEO Elon Musk, tied to long-term performance targets including $8.5T market cap and 20M vehicles
September 6, 2025 — Tesla Inc. has unveiled a proposed compensation package for Chief Executive Officer Elon Musk that could be worth up to $1 trillion, marking what would be the largest executive pay plan in corporate history.
According to the company’s regulatory filing, the package would grant Musk about 12% of Tesla’s outstanding shares in the form of restricted stock units. These will vest only if the company achieves a series of long-term performance targets over the next 10 years.
The goals include raising Tesla’s market capitalization to $8.5 trillion, producing 20 million vehicles by 2035, and deploying 1 million robotaxis into commercial service. Another key achievement is reaching $400 billion in adjusted EBITDA, a sharp increase from the $16.6 billion reported in 2024.
Tesla Chair Robyn Denholm said the plan is intended to keep Musk’s focus firmly on Tesla’s future. “We believe that Elon’s singular vision is vital to navigating this critical inflection point. We also recognize the formidable nature of this undertaking and as a result, the importance of having a leader who is not only willing and capable but eager to meet this challenge,” she said in her letter to investors, noting that Musk has not received “meaningful compensation” since completing his previous award.
The filing also details an interim award of 96 million shares, described as a “good faith” measure linked to Musk’s prior $50 billion compensation package approved in 2018 but struck down by a Delaware court earlier this year. Under the new terms, Musk could claim the interim shares if he remains a top executive for another two years and if the voided 2018 package is not reinstated.
Shareholders are expected to vote on the new plan on November 6 in Texas, where Tesla is now incorporated. If approved and fully achieved, the package could make Musk the world’s first trillionaire.
Tesla’s stock reacted positively to the announcement. Shares closed up 3.64% on Friday at $350.84, reflecting investor confidence in Musk’s continued leadership.
