Catenaa, Friday, September 05, 2025- Tesla proposed a new compensation agreement worth $1 trillion for their CEO Elon Musk, the company said in a filing on Friday, a massive package without precedent in corporate America.
The long-awaited proposal, designed to incentivize Musk to lead Tesla for years to come, sets a series of ambitious benchmarks he must meet to earn the full payout, including expanding Tesla’s nascent robotaxi business and growing the company’s market value to at least $8.5 trillion from around $1 trillion today in 10 years.
The additional shares Musk could receive would push his stake in the electric-vehicle maker to at least 25%
The plan offers a financial windfall and expanded control of the company to Musk, already the world’s richest person, after his 2018 package, valued in excess of $50 billion, was struck down by a Delaware court.
While Tesla appeals the decision, the board is seeking other ways to compensate its CEO, including an interim stock award in early August valued at approximately $30 billion.
The incentives in the new plan aim to keep Musk’s focus on Tesla while it pursues growth in newer markets, including robotics and artificial intelligence.
Friday’s filing also included a non-binding shareholder proposal for Tesla to take a stake in Musk’s xAI startup, an idea Musk has previously discussed.
Tesla shares rose 3.7% on Friday Morning. The stock has fallen 13% this year.
A market capitalization of $8.5 trillion would be more than double that of Nvidia, currently the world’s most valuable company. Tesla’s value peaked in late 2024 at about $1.5 trillion.
The value of the latest CEO award, at $87.8 billion in the filing, would swell to about $1 trillion if Musk hits all the performance targets and gets to collect all the restricted shares.
The proxy also outlines that Musk must participate in the board’s development of a framework for long-term CEO succession to earn either of the last two tranches of the performance award.
