In a shocking move that has caught Wall Street’s attention, Tesla is reportedly planning to give CEO Elon Musk a new pay package that could be worth up to $1 trillion. This would be the biggest executive deal in history. But Musk will only get the money if Tesla achieves some of the toughest business goals ever set.
A Record-Breaking Deal
This new plan is similar to Musk’s famous 2018 pay deal, which was valued at around $55 billion. That deal tied his earnings to Tesla’s stock price and company growth. Thanks to Tesla’s success, Musk became one of the richest people in the world, even though parts of the deal were challenged in court.
Now, Tesla wants to raise the bar even higher. The new deal does not focus on short-term profits or regular bonuses. Instead, Musk will only earn his payout if Tesla:
- Becomes worth several trillions of dollars in market value,
- Achieves breakthroughs in self-driving technology, and
- Becomes a leader in global clean energy and EV production.
If Tesla hits those milestones, Musk could unlock $1 trillion in stock options spread over more than 10 years. If the company fails, Musk gets nothing beyond his small base salary.
What Elon Musk Needs to Do
Tesla’s board has suggested a new pay plan for CEO Elon Musk that could be worth around US$1 trillion if he reaches some very big goals. If approved, it would be the largest CEO pay package in history. This shows how much Tesla is relying on Musk to lead the company as it changes from just a carmaker into a full technology giant.
The plan will likely be linked to tough performance targets, such as boosting growth in AI-based products and self-driving systems. Earlier this year, Tesla’s board had already given Musk an interim pay deal worth about $29 billion in restricted stock. That package was meant to keep him leading Tesla until at least 2030, as the company focuses on becoming an AI-first business.
Mixed Reactions from Experts
The idea of Musk earning a trillion dollars has divided opinion:
- Supporters say Musk has already changed the auto industry forever and proven he can achieve the impossible. They believe setting bold goals fits Tesla’s style.
- Critics argue that the deal represents corporate greed and may increase wealth inequality. Shareholder groups are likely to challenge whether such a big reward is fair, especially with growing competition from traditional carmakers and Chinese EV companies.
There are also concerns about giving Musk even more power, since he already runs Tesla, SpaceX, and other ventures.
Musk’s Response
As always, Musk commented with humor and boldness. On social media, he wrote: “$1 trillion is just a number. What matters is making the future happen.”
He later added that the package would only reward real results, not promises, and repeated Tesla’s mission of speeding up the world’s move to sustainable energy.
What’s Next
The plan will be put to a shareholder vote later this year. Legal experts say lawsuits are almost certain, just like with Musk’s previous pay package.
Whether it passes or not, this proposal proves one thing: Tesla and Musk are still pushing the limits of business and executive pay like no one else.
