Tesla shareholders have approved a massive new pay package for CEO Elon Musk, potentially valued near $1 trillion, that is contingent upon hitting 12 aggressive corporate targets. Musk, who previously held a 13% stake, could increase his control of Tesla to about 25% if he unlocks the full award of approximately 424 million shares.
Thank you for reading this post, don't forget to subscribe!The Dual Requirements
To earn each of the 12 tranches, Musk must simultaneously meet both an operational milestone and a market capitalization threshold.
| Goal Type | Key Targets to Unlock Full Award |
| Market Cap | Ranging from an initial $2 trillion up to a final $8.5 trillion valuation. (Tesla is currently valued at ~$1.5 trillion.) |
| Operational | Achieving milestones like an adjusted EBITDA of $400 billion, delivering 20 million vehicles, deploying 1 million robotaxis, and selling 1 million Optimus robots. |
Commitment and Contingency
- Long-Term Lock-In: The shares earned allow Musk to vote immediately but he cannot sell them for a minimum of 7.5 years from the award date, ensuring his continued involvement.
- Board Discretion: Proxy adviser Glass Lewis noted a clause that grants the board broad discretion to approve some tranches even if metrics are not fully met, though this is debated.
Wall Street analysts are optimistic, with Wedbush suggesting Tesla could reach a $2 trillion market cap by early 2026 and a $3 trillion market cap by the end of 2026 as its autonomy and robotics roadmaps scale up.
Would you like to know more about the controversy surrounding the potential use of a special class of voting stock for control instead of this massive payout?
