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Tesla Proposes $1 Trillion Pay Package for Elon Musk
5 Sep
Summary
- Tesla's board seeks shareholder approval for Musk's new pay package
- Package could be worth up to $1 trillion if Tesla hits ambitious goals
- Previous $56 billion pay package for Musk faced legal challenges
On September 5, 2025, Tesla's board of directors announced a groundbreaking proposal to award CEO Elon Musk a new pay package that could potentially be worth over $1 trillion. The package, which requires shareholder approval, would grant Musk around 423 million shares if the electric vehicle company hits a series of ambitious financial and operational targets over the next 10 years.
To earn the full compensation, Tesla would need to reach a staggering $8.5 trillion market capitalization, about eight times its current value. If Tesla achieves this milestone, the stock awarded to Musk would be worth more than $1 trillion, making it one of the largest pay packages in corporate history.
This latest proposal comes after Tesla's previous $56 billion compensation plan for Musk faced legal challenges from investors who alleged the board had breached its fiduciary duties. In December 2024, a Delaware judge ordered the company to revoke that award.
In August 2025, Tesla said it was granting Musk shares worth around $29 billion. The new proposal, if approved, would dwarf even that substantial payout, underscoring the board's confidence in Musk's ability to drive the company to unprecedented heights.
