Tesla Approves Musk $1 Trillion Pay Linked to $7.5 Trillion Market Cap

Tesla has proposed an unprecedented compensation package for CEO Elon Musk, potentially worth up to $1 trillion and tied to ambitious performance milestones, including achieving a market capitalization of nearly $7.5 trillion. The plan consists of 12 tranches of shares that would vest over up to a decade if Musk meets targets such as reaching a $2 trillion market cap, producing 20 million vehicles, deploying 1 million Robotaxis, and delivering 1 million humanoid AI bots. Tesla’s board and Chair Robyn Denholm emphasize that the package aims to keep Musk motivated and focused on delivering transformative growth and innovation, particularly as Tesla pursues advances in AI, autonomous driving, and robotics. The compensation plan also includes a proposal for Tesla shareholders to vote on investing in Musk’s AI startup, xAI, which is closely intertwined with Musk’s other ventures, including SpaceX and the social media company X. Market reaction to the announcement was positive, with Tesla shares rising in pre-market trading. This compensation package reflects Tesla’s aggressive strategic ambitions and Musk’s central role in navigating the company through a critical inflection point amid the AI revolution.