Tesla has announced that its board has recommended a new compensation plan for CEO Elon Musk, potentially worth around $1 trillion if he achieves a set of ambitious goals. If approved, this would become the largest executive pay package in corporate history.
The 10-year plan ties Musk’s payout to major performance targets, including expanding Tesla’s robotaxi business, developing AI-powered products, and boosting Tesla’s market value from $1 trillion to $8.5 trillion. Achieving all the targets would increase Musk’s stake in Tesla to at least 25%.
To unlock the first tranche of shares, Tesla must nearly double its market value to $2 trillion and reach a cumulative production and delivery milestone of 20 million vehicles.
Earlier this year, Tesla approved an interim compensation plan for Musk valued at approximately $29 billion in restricted stock. This package was designed to retain him at Tesla through 2030, as the company pivots towards an AI-first strategy.
The new plan reflects Tesla’s confidence in Musk’s leadership and its commitment to maintaining a leading position in technology and innovation. It underscores the company’s focus on autonomous driving, AI integration, and long-term growth in the electric vehicle and technology sectors.
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Last reviewed by Abhishek Sharma on February 7, 2026
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