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performance-based compensation package for CEO Elon Musk that could be worth up to $1 trillion if the company achieves extremely ambitious targets over the next decade. The deal, which passed with more than 75% of the vote at the annual meeting on Thursday, November 6, 2025, is the largest potential executive payout in corporate history.
Key Details
Performance-Based: Musk will not receive a salary; the compensation is entirely in the form of new stock options (approximately 423.7 million additional shares) that he will earn in 12 tranches only if specific financial and operational milestones are met.
Ambitious Milestones: To receive the full $1 trillion, Tesla must achieve a series of demanding goals within ten years, including:
Boosting its market capitalization from a current $1.5 trillion to an eye-watering $8.5 trillion.
Delivering 20 million vehicles.
Getting 10 million Full Self-Driving (FSD) subscriptions.
Deploying one million Robotaxis in commercial operation.
Producing one million Optimus humanoid robots for sale.
Goal: If all targets are met, Musk's ownership stake in Tesla could increase to nearly 30%.
Controversy: The package faced criticism from some major institutional investors and proxy advisory firms who raised concerns about its unprecedented size and the potential for excessive dilution of existing shares. However, the board argued the deal was necessary to ensure Musk's continued focus and prevent him from leaving to focus on his other ventures like SpaceX and xAI.
Previous Deal: This new package comes after a Delaware judge in 2024 struck down Musk's previous, smaller 2018 compensation package (then valued at up to $56 billion), ruling the approval process was flawed.
The approval makes it possible for Musk, already the world's richest person, to become history's first trillionaire, provided Tesla's value and operations reach the ambitious targets.
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