From the Washington Examiner: Tesla is offering CEO Elon Musk an unprecedented pay package worth up to $1 trillion if he helps the electric vehicle maker reach specific milestones over the next decade.
In a securities filing submitted Friday, the company’s board plans to give Musk more than 423 million additional shares in 12 batches. To obtain the first award, the chief executive would need to double Tesla’s current market value of $1.1 trillion. Musk’s compensation plan is contingent on Tesla reaching $8.5 trillion in market value by the end of the next decade.
If he receives the awards in full, Musk could become the world’s first trillionaire. He is already the world’s richest man, with an estimated net worth of $430 billion, according to Forbes.
Tesla Chairwoman Robyn Denholm said the plan seeks to keep Musk “motivated and focused on delivering for the company.”
Tesla is reportedly hoping to keep Musk as their chief executive until 2030.
Denholm explained the deal in a CNBC interview.
“If he performs, if he hits the super ambitious milestones that are in the plan, then he gets equity — it’s 1% for each half a trillion dollars of market cap, plus operational milestones he has to hit in order to do that,” she said.
Watch below:
Tesla posted a lengthy letter to shareholders in a post on X on August 4:
The letter begins:
Today we announce an important first step in compensating Elon Musk for his extraordinary work at Tesla. As you know, Elon has not received meaningful compensation for eight years since the 2012 CEO Performance Award was last earned in 2017. Despite overwhelming support from you in 2018 and again in 2024, our legal efforts continue in the Delaware courts to reinstate the 2018 CEO Performance Award. Despite these legal challenges, we can all agree that Elon has delivered the transformative and unprecedented growth that was required to earn all milestones of the 2018 CEO Performance Award. This growth has translated into immense value generated for Tesla and all our shareholders.
A Letter to Our Shareholders on the 2025 CEO Interim Award
Dear Fellow Tesla Shareholders,
Today we announce an important first step in compensating Elon Musk for his extraordinary work at Tesla. As you know, Elon has not received meaningful compensation for eight years since…
— Tesla (@Tesla) August 4, 2025
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