Elon Musk’s $1 Trillion Pay: What Tesla Chief Must Achieve To Become World’s First Trillionaire
For Musk to receive $1 trillion pay package, several conditions have been set regarding Tesla’s objectives for the coming decade.
Tesla shareholders approved CEO Elon Musk’s $1 trillion pay plan on Thursday, awarding him the largest potential corporate payout ever. However, he needs to achieve the company’s required performance goals to receive this hefty pay package.
The deal, passed with 75% of votes, is the largest pay package ever offered to a CEO. The approval came at Tesla’s annual meeting in Austin, Texas, on Thursday.
For Musk to receive $1 trillion pay package, several conditions have been set regarding Tesla’s objectives for the coming decade. Among other things, one such key condition includes that Tesla's market capitalisation should increase from $1.5 trillion to $8.5 trillion within 10 years.
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Tesla Goals Musk Needs To Achieve
Musk, who currently enjoys the title of the world’s richest man, will need to significantly increase Tesla’s market value over the next decade to unlock the full potential of his approved pay. Shareholders still believe he can guide the company through the new era shaped by robotics and artificial intelligence.
The compensation plan is divided into 12 tranches. Each stage outlines a path for Tesla to reach an enormous market capitalisation. If Musk achieves this, he can claim an additional 12% of Tesla’s stock. To qualify, he must remain vested in the company for at least seven and a half years. He must also help create a long-term succession plan for Tesla, The Guardian reported.
The new stock options, combined with shares from his 2018 package, would give Musk a 25% ownership stake in Tesla. Within the next 10 years, Musk must deliver 20 million Tesla electric vehicles to customers.
He also needs to sell 10 million active full self-driving subscriptions. Another goal requires the development and sale of one million humanoid robots. In addition, Tesla must deploy one million robotaxis into commercial service.
Musk is also required to achieve $400 billion in actual earnings for four consecutive quarters. For context, Tesla’s actual earnings for the third quarter of 2025 were $4.2 billion, a decline of 9% from the same period a year earlier.
