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Tesla has placed before shareholders a pay proposal that could hand Elon Musk a record-breaking reward of more than $1 trillion — provided the company achieves unprecedented expansion over the next decade.
According to a filing with the U.S. Securities and Exchange Commission on Friday, the package would give Musk as much as 12 percent in additional Tesla shares, but only if the automaker’s market value surges to $8.5 trillion by 2035. The vote on the plan is set for November.
At present, Tesla is valued slightly above $1 trillion, a retreat from earlier highs after a string of weak earnings reports. Analysts say waning sales have been compounded by Musk’s polarizing political stances, which have alienated sections of Tesla’s customer base.
Yet Musk insists the company’s future is boundless. In July, he argued that success in autonomous driving and artificial intelligence would make Tesla “by far the most valuable company in the world.” His optimism appeared to resonate with investors on Friday, as Tesla shares climbed following the compensation announcement.
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The new incentive scheme comes on the heels of a $29 billion “interim” award approved earlier this month, which Tesla’s board said was necessary to keep Musk in place as rivals compete fiercely for top-tier talent. It also follows the company’s legal battle in Delaware, where a court struck down Musk’s 2018 compensation package — once valued at $55.8 billion — as excessive.
Board chair Robyn Denholm and director Kathleen Wilson-Thompson defended the latest proposal in a letter to shareholders, calling it a “super ambitious incentive package for a pioneering, ambitious, and unique CEO.” The pair outlined stringent milestones, including the rollout of one million robotaxis and one million AI-powered bots, as preconditions for Musk to receive the full payout.
Even so, Tesla acknowledged in its filing that the enormous package could deepen public criticism. “Adverse public perception of the 2025 CEO Performance Award, even if it is baseless or satisfactorily addressed, may result in negative publicity for Tesla,” the company warned.
Musk’s personal reputation has already taken a hit. A Gallup poll in August ranked him the least popular among 14 high-profile figures, with just 33 percent of respondents viewing him favorably against 61 percent unfavorable — placing him below both Israeli Prime Minister Benjamin Netanyahu and former U.S. President Donald Trump.
