Elon Musk in Line for $1 Trillion Pay Package
Tesla has announced a new plan that could reward CEO Elon Musk with a pay package of up to $1 trillion, provided the company meets a series of extremely aggressive goals over the next 10 years. The plan, which was revealed in a regulatory filing, is structured around a dozen share tranches that are tied to a number of ambitious targets. This comes after investors recently voted to restore Musk’s previous $44.9 billion pay package that had been challenged in court.
The Audacious Goals for Tesla
For Musk to receive the full $1 trillion payout, Tesla must achieve some monumental milestones. These include a $2 trillion market valuation, which would be a massive leap for the company. It also needs to deliver 20 million vehicles, a huge jump from the less than 2 million it delivered in 2024. The plan also sets targets for new areas of business, including the delivery of 1 million AI bots and having 1 million robotaxis in commercial operation.
Conditions and Succession
The pay package comes with strict conditions for Musk. He must remain with the company for at least 7.5 years to cash out on any of the stock awards. For him to earn the full amount, he must stay for the entire 10 years. The plan also includes a key condition for the final two tranches: Musk must present a framework for who will succeed him as CEO. This ensures a clear leadership plan for the company’s future.
A Positive Market Reaction
The news was met with a positive response from investors, as Tesla’s stock rose by nearly 2% in premarket trading. The company’s focus on new areas like AI and robotics, which is a key part of the new plan, seems to be a major driver of investor interest. The new plan also gives Musk more voting power over Tesla and sets a clear direction for the company’s growth over the next decade.
