After a previous, colossal pay package was struck down in court, Tesla is returning with an even more audacious proposal for Elon Musk, raising the potential reward from tens of billions to over a trillion dollars. This new incentive plan is designed to be legally robust while setting targets that are exponentially more challenging than its predecessor.
The company is still appealing a court ruling that voided a $55.8 billion bonus for Musk announced in 2018. That ruling was based on claims that the deal’s targets were inappropriately set. In its new filing, Tesla is making it clear that this new package is built on a framework of “meteoric growth,” with profit targets set 28 times higher than the 2018 plan.
The central goal is to increase Tesla’s market value from just over $1 trillion to $8.5 trillion in ten years. This leap would trigger share awards for Musk that would increase his company stake to over 25% and make him the first person with a net worth measured in trillions. The package also specifies tangible deliverables, including the deployment of one million robotaxis and AI bots.
This move can be seen as both a reward for past performance and a powerful incentive for future innovation. The board is arguing that to achieve its next phase of growth—transforming into an AI and robotics powerhouse—it needs Musk fully engaged. By proposing a pay package of this magnitude, Tesla is making a clear statement that it believes his leadership is worth a history-making price.