Filenews 6 September 2025
Tesla Inc. has submitted a proposal for a new pay package to CEO Elon Musk, with a potential value of up to $1 trillion. A plan that is unprecedented in American business history.
The package, which is designed to encourage Musk to remain at the helm of Tesla for the next decade, sets out a number of ambitious goals. To fully secure the pay, the head of the company will have to implement achievements such as the development of the autonomous taxi sector (robotaxi) and the soaring market value of Tesla to $8.5 trillion. From about $1 trillion where it is today.
The additional shares Musk could receive would boost his stake in Tesla to at least 25 percent, according to data included in Friday's filing. He has publicly stated that he wants to reach such a percentage.
The plan promises huge economic benefits and increased control over the world's already richest man, following the cancellation of the previous $50 billion pay package. from a Delaware court. While Tesla is appealing, the board is considering alternative ways of paying, such as an interim share package in August worth about $30 billion.
The motivation of the new plan is to keep Musk focused on Tesla while the company seeks growth in new markets, such as robotics and artificial intelligence. Friday's filing also included a non-binding shareholder proposal for Tesla to participate in Musk's xAI startup, an idea he has discussed himself.
The new deal underscores Musk's dominant role in the auto industry, despite his multiple engagements. Since 2008, Musk has remained CEO of Tesla, while also leading SpaceX, xAI, Neuralink and Boring Co. In an interview with Bloomberg in May, he said he was committed to staying at the helm of Tesla for five years.
Tesla's stock has fallen 16% since the beginning of the year through Thursday.
