Tesla Board Approves $1 Trillion Pay Plan for Elon Musk

Tesla's board has proposed an unprecedented 10-year compensation package for CEO Elon Musk that could be worth up to $1 trillion if the company achieves extraordinary performance milestones. The plan includes 12 tranches of stock awards tied to ambitious targets such as reaching an $8.5 trillion market valuation, delivering 20 million electric vehicles annually, deploying 1 million robotaxis and 1 million humanoid robots, and attaining $400 billion in adjusted EBITDA over four consecutive quarters. Musk must stay with Tesla for at least seven and a half years to receive any payout and for the full 10 years to earn the entire package, which would increase his voting power to control 25% of Tesla's shares. The compensation is designed to keep Musk committed through Tesla's strategic shift toward AI and robotics, beyond just electric vehicles. However, Tesla faces challenges including a 25% stock decline this year, intensified competition, and a 40% drop in European sales linked to Musk's political alignment with President Donald Trump and far-right groups in Germany. The company’s next shareholder meeting is scheduled for November 6, when the plan will be put to a vote.