Tesla Board Proposes $1 Trillion Pay Package for Elon Musk

Elon Musk boosted his Tesla stake to approximately 13% by purchasing $1 billion worth of shares, signaling strong confidence in the company's future amid preparations for a historic $1 trillion CEO compensation package. This unprecedented 10-year pay plan, proposed by Tesla's board and set for a November shareholder vote, ties Musk's compensation to highly ambitious performance goals such as increasing Tesla's market value to over $8 trillion and selling one million robots and robotaxis. Tesla board chair Robyn Denholm has defended the package, emphasizing that it aims to motivate Musk to achieve extraordinary growth milestones and increase his voting control, rather than simply enrich him. Despite recent challenges including a sales decline and increased competition, the board views Musk's vision for AI, robotics, and self-driving technology as key to Tesla's long-term dominance. Musk’s increased ownership stake and the compensation plan align with his desire to expand his control to 25-29%, enabling him to drive Tesla’s strategic direction more decisively. The proposal reflects both confidence in Musk’s leadership and concerns about governance and realism given the steep targets ahead.