Tesla Proposes $1 Trillion Pay Package for Elon Musk Tied to AI and Robotaxi Goals

Tesla has put forward a new compensation package for CEO Elon Musk that could be worth more than $1 trillion if he delivers on ambitious growth goals driven by autonomous driving and artificial intelligence.

The 10-year plan, disclosed Friday in a filing with the U.S. Securities and Exchange Commission (SEC), must be approved by shareholders. It would grant Musk up to 12 percent of Tesla’s current total shares if the company’s market capitalization hits “at least $8.5 trillion by 2035.”

Tesla’s market value currently sits just above $1 trillion, down from its previous peak amid disappointing earnings. Analysts partly blame slowing sales on Musk’s embrace of far-right politics, which has sparked criticism.

Musk has repeatedly insisted Tesla’s growth potential is virtually unlimited. In July, he said that if the company fulfills its vision for AI and self-driving technology, “Tesla will be the most valuable company in the world by far.”

Earlier this month, the company offered Musk an interim award worth about $29 billion, stressing the importance of retaining him as CEO amid intense competition for global talent.

The proposal follows a Delaware court ruling that voided Musk’s 2018 pay package valued at $55.8 billion.

Tesla Chair Robyn Denholm and board member Kathleen Wilson-Thompson defended the new deal in a letter to shareholders, calling it a “super ambitious incentive package for a pioneering, ambitious and unique CEO.”

“We believe that Elon’s singular vision is vital to navigating this critical inflection point,” they wrote, outlining conditions such as launching one million robotaxis and one million AI bots. “If Elon achieves all the performance milestones under this principle-based 2025 CEO Performance Award, his leadership will propel Tesla to become the most valuable company in history.”

The package will be voted on at Tesla’s annual meeting scheduled for November 6, which will take place both virtually and at Tesla’s Austin, Texas factory with limited in-person attendance.

Musk is widely credited with transforming Tesla and SpaceX into industry leaders, but his leadership has come under greater scrutiny over declining car sales and profits. The slump is tied not only to political controversies but also to sluggish rollouts of new models, including weaker-than-expected Cybertruck sales.

Musk briefly joined U.S. President Donald Trump’s administration earlier this year but later left amid disagreements. Though the two clashed publicly in the spring, their feud has since quieted.