Tesla Proposes $1 Trillion Pay Package for Musk Tied to $8.5 Trillion Valuation

Tesla's board has proposed an unprecedented $1 trillion performance-based pay package for CEO Elon Musk, contingent on highly ambitious milestones including a market valuation increase to $8.5 trillion, delivery of 20 million vehicles, deployment of 1 million robotaxis, and sales of 100 million Optimus robots annually. The plan, awaiting shareholder approval, ties Musk's rewards to operational and financial targets that would require Tesla to expand dramatically into AI-driven markets such as robotics and autonomous mobility services. While some analysts, including Morgan Stanley, view the package as aligning Musk's interests with shareholders and cementing his long-term commitment, others criticize the feasibility of these goals and the enormous dilution the plan entails. Investor debate centers on whether Musk's vision can offset Tesla's declining U.S. EV market share, now at its lowest since 2017 amid intensifying competition from legacy automakers. Critics also point to Musk's past negotiations, suggesting the pay plan emerged partly from his leverage over the company despite recent sales challenges. Overall, the package underscores Musk's pivotal role in steering Tesla beyond traditional automotive manufacturing toward a future dominated by AI and robotics, although significant risks remain regarding execution and regulatory hurdles.