Tesla proposes nearly $1T new pay package for CEO Elon Musk

US electric vehicle (EV) giant Tesla on Friday proposed to investors a nearly $1 trillion pay plan for the CEO Elon Musk, according to a securities filing.

If the number of shares stays the same, the maximum payout would make the entire package worth almost $975 billion.

According to the plan, Musk, who is now the richest person in the world, would get 12 tranches of shares if Tesla reaches specific benchmarks over the course of the following ten years.

Additionally, Musk would have more voting power over Tesla, something he has openly called for since early 2024.

Musk would receive more than 423 million more shares as part of the complete reward. Currently, he owns around 13% of the business.

Tesla would have to almost quadruple their current market capitalization to $2 trillion in order to get the first prize in the proposal. Reaching a market valuation of $8.5 trillion is the ultimate threshold.

Some 20 million Tesla vehicles sold, 10 million active full self-driving (FSD) subscriptions, one million robots delivered, one million Robotaxis in commercial operation, and a number of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) benchmarks are among the operational milestones recognized by the 2025 CEO Performance Award.

Additionally, Tesla stated in the filing that it will ask shareholders to vote on whether the business should invest in Musk's latest project, xAI, at the meeting on Nov. 6.

The EV giant previously announced a plan to award Musk an interim pay package of 96 million shares, which was worth about $29 billion in early August.

That pay package would vest in two years, Tesla said, provided Musk remained CEO or in another important executive role.