Tesla Proposes New $1 Trillion Pay Package for Elon Musk Tied to Robotaxis and $8.5T Valuation
AUSTIN, TX – September 6, 2025 – Tesla Inc. has unveiled a new long-term compensation proposal for CEO Elon Musk that could be valued at an astonishing $1 trillion, potentially making it the largest executive pay package in corporate history.
The monumental plan, detailed in a proxy filing released on Friday, September 5, is designed to secure Musk’s leadership for the next decade by tying his compensation to a series of incredibly ambitious performance milestones. The proposal underscores the board’s belief that Musk’s continued focus is indispensable as Tesla seeks to dominate not just the electric vehicle market, but also the emerging fields of robotics and artificial intelligence.
The Trillion-Dollar Incentives: What’s in the Plan?
The proposed pay package moves beyond traditional metrics, setting audacious goals that would fundamentally reshape the company and its valuation. If approved by shareholders, the plan would only grant payouts to Musk upon achieving these targets.
Key terms of the proposal include:
Massive Valuation Target: Increasing Tesla’s market capitalization from its current level of roughly $1 trillion to an unprecedented $8.5 trillion.
Robotaxi Expansion: A significant portion of the milestones are directly linked to the successful and widespread expansion of Tesla’s emerging robotaxi business.
Increased Stake for Musk: Upon meeting the performance goals, Musk would receive additional tranches of Tesla shares, elevating his ownership stake in the company to his publicly stated target of at least 25%.
The $30 Billion Bridge: An Interim Award Amid Legal Battles
The filing also shed light on the board’s immediate efforts to compensate its CEO while his controversial 2018 pay package (valued at over $50 billion) remains under appeal in Delaware courts.
Tesla granted Musk an interim stock award in early August valued at approximately $30 billion. This move is seen as a strategic bridge to ensure its CEO is incentivized and rewarded, even as the previous record-breaking package faces legal hurdles. This comes after shareholders emphatically reiterated their support for the 2018 deal earlier this year and approved the company’s corporate relocation from Delaware to Texas.
A Strategy to Keep Musk Focused on Tesla
With Elon Musk at the helm of a sprawling empire that includes SpaceX, xAI, Neuralink, and The Boring Co., a primary goal of the new compensation plan is to ensure his primary attention remains squarely on Tesla. The board aims to lock in his focus as the automaker navigates a critical expansion into new, high-stakes technologies.
Further intertwining his ventures, the filing also included a non-binding shareholder proposal suggesting that Tesla consider taking an equity stake in Musk’s artificial intelligence startup, xAI, highlighting the synergistic future envisioned between the two companies.
Market Reaction and Investor Sentiment
Investors appeared to react positively to the board’s bold move and ambitious vision. On Friday, Tesla shares (TSLA) closed up 3.64% at $350.84, though they fell slightly in after-hours trading.
The market’s response reflects a continued confidence in Musk’s leadership and his ability to deliver on seemingly impossible goals. The new pay proposal, while staggering in scale, aligns his personal financial success directly with creating immense value for shareholders, a formula that has defined his tenure at the electric vehicle giant.
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