Tesla has prepared the largest executive pay package in its history for CEO Elon Musk. If approved, this package could reach $1 trillion and requires the company’s market capitalization to reach $8.5 trillion. This goal signals Tesla’s shift from being just an automaker to a leader in artificial intelligence and robotics.
Elon Musk is adding to his fortune
This massive payout covers a 10-year period. Musk is expected to meet very ambitious conditions to qualify for the payment, including stipulations such as expanding Tesla’s robotaxi business and developing new AI-enabled products. If these targets are met, Musk’s stake in Tesla will increase to at least 25%, a level of control Musk has long desired.
Tesla previously prepared a payout plan exceeding $50 billion for Musk in 2018, but this was overturned by the court. While the company’s appeals process continues, the board recently granted Musk a temporary stock award of $29 billion.
This newly proposed package further strengthens Musk’s control over the company and is central to Tesla’s strategy to focus on artificial intelligence and robotics.
Meanwhile, the 16 percent drop in Tesla stock value in recent months makes achieving these ambitious goals even more crucial. Despite having previously led four other companies, including SpaceX, xAI, Neuralink, and The Boring Company, Musk stated in a statement last month that he was committed to remaining at the helm of Tesla for the next five years.
