Tesla offers Elon Musk a $1 trillion pay package, largest in corporate history

Tesla is preparing to hand Elon Musk the biggest corporate pay deal ever conceived — a $1 trillion package that makes his controversial $56 billion plan from 2018 look like pocket change, according to a report by Reuters. The proposal underscores just how much the carmaker believes its future rests on Musk’s shoulders as it tries to pivot from slowing EV sales to a grander bet on AI, robotaxis, and humanoid robots.

The regulator filing lays out an incentive structure unlike anything granted to a U.S. executive. If Tesla can hit a market cap of $8.6 trillion over the next decade — nearly eight times its current value — Musk could walk away with as much as 12% of the company. That would boost his voting power well beyond the 13% stake he holds today and cement his grip on the automaker.

“Tesla’s board has proposed a $1 trillion compensation plan for CEO Elon Musk in what would be the largest corporate pay package in history,” Reuters reported.

Musk’s Potential $1 Trillion Tesla Payout Hinges on AI, Robotaxis, and 8x Valuation Growth

Supporters argue the structure keeps Musk fully invested in Tesla’s long-term vision, as every dollar depends on execution. Critics view it as another governance gamble, one that risks diluting shareholder value and giving Musk even more unchecked control. “Mr. Musk has shown a troubling history of being easily distracted into other paths that don’t necessarily directly benefit a company like Tesla,” said Peter Anderson, founder of Andersen Capital Management.

For the board, the scale of the award is meant to align Musk with the company’s next act: turning years of promises about robotaxis and humanoid robots into reality. The plan ties vesting to both market-cap milestones and operational goals. There’s no salary or cash bonus involved, echoing the design of his 2018 package.

Tesla framed the move as an effort to keep Musk firmly at the helm as rivals close in. The company has been losing ground to China’s BYD and other automakers as electric-vehicle demand cools. At the same time, Tesla has reincorporated in Texas and is appealing a Delaware ruling that voided Musk’s previous pay plan. The new proposal, reviewed by a committee of independent directors, will head to a shareholder vote in November.

Shares ticked up 2% in premarket trading after the filing. The board has already approved an interim deal worth about $29 billion in restricted stock to keep Musk tied to Tesla through at least 2030. The trillion-dollar carrot is meant to go much further — locking him in as Tesla tries to become the most valuable company on Earth.