Tesla has put forward a record-breaking pay proposal that could hand Elon Musk more than $1tn (£740bn) if he achieves a set of highly ambitious targets over the next decade. The plan would see the Tesla boss receive no salary or bonus, with the entire award tied to the company’s performance and market value. It comes only weeks after a US court struck down Musk’s earlier $50bn package, ruling it was excessive and unfair to shareholders. The latest proposal, revealed by Tesla’s board on Friday, has already sparked debate among investors and analysts.
How the Pay Package Works
If approved, the award would become the largest in corporate history. To unlock it, Musk would need to steer Tesla towards extraordinary milestones. Targets include boosting one key earnings measure by 24 times, putting one million self-driving “robotaxis” on the road, selling one million humanoid AI robots, and delivering an additional 12 million cars. Chair Robyn Denholm said the deal was about securing Musk’s leadership for Tesla’s most ambitious phase yet. “Growth that may seem impossible today can be unlocked with new ideas, better technology and greater innovation,” she said.
Sharp Reactions From Analysts
Reaction has been divided. Dan Coatsworth, an analyst at AJ Bell, called the proposed award “astonishing” and questioned its justification. “Is one person worth that much?” he asked. Coatsworth argued that Tesla has been losing ground to rivals in the electric vehicle market and that Musk’s actions outside the company have damaged the brand. “Surely Musk should be fighting for his job, not Tesla’s board fighting to keep him,” he added. Critics say the package illustrates a board too dependent on one individual, while supporters argue it shows confidence in Musk’s ability to deliver transformative growth.
Background: A Controversial History
Musk, already the world’s richest person, received $29bn in Tesla shares last month as part of his previous deal, even though a Delaware court invalidated the $50bn plan it was based on. The court said the award lacked proper oversight and unfairly favoured Musk. The latest $1tn proposal suggests the board remains determined to keep him in place despite ongoing controversy. Earlier this year, the Wall Street Journal reported that Tesla had quietly explored leadership alternatives amid concerns over Musk’s political focus and his ties to US President Donald Trump. Tesla denied the report as “absolutely false,” though the paper stood by its story.
What’s at Stake for Tesla
The package will go to a shareholder vote and is likely to divide opinion. For Tesla’s backers, it is a bold gamble designed to ensure the company keeps its high-profile founder at the helm and pushes towards innovations that could transform transport and technology. For critics, it raises questions about governance, accountability and the risks of tying such a vast sum to a single executive. Whatever the outcome, the proposal reflects both the scale of Tesla’s ambitions and the extraordinary influence Musk still commands within the company.
