Tesla has revealed in its latest financial filing that it wants to give chief executive Elon Musk a new pay deal worth around one trillion dollars (specifically $900 billion). If approved, the package would be the largest ever offered to a CEO and could make Musk the first person in history to become a trillionaire.
The plan, which will be put before shareholders for approval at the company’s annual meeting in November, does not include any salary or cash bonus. Instead, it is linked to the company’s stock market value and business performance over the next decade.
The package is divided into twelve parts (also known as tranches). Each tranche is tied to a financial milestone and an operational goal. Every tranche represents around 1% of Tesla’s stock, giving Musk the opportunity to earn a huge stake in the company if the targets are met. The financial milestones start with Tesla reaching a market value of $2 trillion, which is almost double its current value of just over $1 trillion. After that, the goals increase in steps of $500 billion until Tesla’s market value reaches about $8.5 trillion (almost eight times higher than it is today). This would make Tesla one of the most valuable companies in history.
On top of valuation, the firm has also set tough business goals. The company expects to greatly increase electric car production, sell tens of millions of self-driving software subscriptions, roll out a large network of robotaxis, and deliver up to one million humanoid robots. Tesla has also included profit targets, requiring adjusted annual earnings (EBITDA) to rise as high as $400 billion. This is significant because Musk will only receive stock if both the financial and operational goals are met.
The proposal also includes rules on how Musk can use any stock he gains. He would have to keep the shares for at least seven and a half years before selling them. In addition, any large sale of stock would need to be coordinated with Tesla’s board to avoid sudden market disruptions. If Musk unlocks the entire package, his voting control in Tesla could climb to around 32%, though taxes and share dilution would likely reduce that closer to 25%.
According to the firm, the plan is needed to keep Musk leading the company at a time when it is pushing beyond car manufacturing into areas like artificial intelligence (AI), robotics, and autonomous transport. The move comes months after a Delaware court cancelled Musk’s earlier $56 billion pay package, ruling it was excessive. After that ruling, the company moved its legal registration from Delaware to Texas.
Clearly, this is not Musk’s first big payout. In August 2025, Tesla’s board approved a smaller interim award worth around $29 billion in restricted stock to secure his leadership until at least 2030. The timing of these latest moves is especially notable as Tesla is facing a difficult year. Its stock has dropped about 25% since the start of 2025, driven by falling electric vehicle sales (particularly in China) and weaker government support in the US. In the first quarter (Q1 2025), the company reported its weakest results since 2022, with profits dropping 71% and revenue down to $19.3 billion.
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