Tesla’s board of directors unveiled a “super ambitious” incentive package for CEO Elon Musk on Friday, a plan that could make him the world’s first trillionaire if he achieves a series of aggressive growth targets over the next decade.
Filed with the U.S. Securities and Exchange Commission, the plan would allow Musk to earn up to 12% of Tesla’s total stock in 12 separate tranches over ten years, contingent on meeting specific goals for market capitalization, share price, operating profits, and production.
Under the proposal, Musk would control at least 25% of Tesla, compared with his current 13%, provided he remains with the company for seven more years.
Musk is already the world’s wealthiest individual, with a net worth of $437.8 billion according to Forbes. In addition to Tesla, he controls SpaceX and the social media platform X.
The incentive package reflects Tesla’s desire to retain Musk, who has previously threatened to leave the company.
The first tranche grants Musk 96 million shares of restricted stock, valued at over $31 billion, which cannot be sold for five years.
Tesla’s board described the plan as designed for a “pioneering, ambitious and unique CEO,” aiming to secure Musk’s leadership and his ability to attract AI and robotics talent to the company.
To unlock the full reward, Musk must raise Tesla’s market capitalization to at least $8.5 trillion by 2035, far above its current valuation of just over $1 trillion.
Analysts have voiced concerns about corporate governance and social implications, questioning the precedent of such a massive payout for a single executive.
The package will seek shareholder approval in November 2025, with the outcome expected to influence not only Tesla’s leadership stability but also broader conversations about executive pay, corporate governance, and wealth concentration in technology Jcompanies.