Tesla’s board has put forward an unprecedented $1 trillion compensation package for CEO Elon Musk. The plan underscores Musk’s central role at the electric vehicle maker as it looks beyond EVs toward robotaxis and humanoid robots.
To unlock the award, Tesla’s valuation would need to rise nearly eightfold to about $7.5 trillion over the next decade. If achieved, Musk’s stake would increase far beyond his current 13%, intensifying debate about governance, shareholder power, and succession planning.
The proposal comes as Tesla faces slowing EV demand, growing competition from Chinese automakers, and pressure to prove its ambitions in artificial intelligence. Analysts note that while the targets are bold, they reflect the company’s dependence on Musk’s leadership.
Market strategists and analysts are divided. Some view the package as a way to motivate Musk to deliver massive long-term growth, potentially rewarding shareholders. Others warn that the targets—such as an 8x increase in market capitalization—are overly ambitious and risk being unattainable.
Experts also question whether this record-breaking plan sets a dangerous precedent for corporate governance. Critics highlight that Musk’s previous $56 billion pay deal was already voided in court, and this new award could spark future legal and ethical debates.
While supporters argue that Tesla needs Musk’s vision to remain competitive, detractors believe the package is excessive, especially as Tesla’s brand faces challenges and rivals continue to gain ground. Still, the proposed $1 trillion deal ensures that Musk remains firmly tied to Tesla’s future.
