Tesla CEO Elon Musk might be in line for a payout of $1 trillion if his electrical automobile firm meets a collection of extraordinarily aggressive targets over the next 10 years, based on paperwork launched by the corporate.
Tesla, which is leaning closely into robotics and AI, mentioned in a regulatory submitting on Friday (September 5, 2025) that the package has a dozen share tranches that embody awards for Mr. Musk if targets, starting from automobile manufacturing to the overall worth of the corporate, are met over that point interval.
Very early in the plan, Tesla must attain a market valuation of $2 trillion and obtain 20 million automobile deliveries. Tesla delivered fewer than 2 million automobiles in 2024.
That milestone would additionally require one million robotaxis in industrial operation and the supply of 1 million synthetic intelligence bots.
Mr. Musk wants to stay with Tesla for a minimum of seven and a half years to money out on any inventory, and 10 years to earn the complete quantity.
Mr. Musk has been one of many richest folks in the world for a number of years.
Mr. Musk would additionally obtain extra voting energy over Tesla below the proposed plan. The EV firm is ready to carry its annual shareholders assembly on November 6. Tesla’s final shareholders assembly was on June 13 of final 12 months, the place traders voted to revive Mr. Musk’s document $44.9 billion pay package that was thrown out by a Delaware choose earlier that 12 months.
A situation of the eleventh and twelfth tranches of the plan contains Mr. Musk arising with a framework for somebody to succeed him as CEO.
The goals set out for Mr. Musk and Tesla are extraordinarily formidable given current tumult on the Texas firm.
Tesla shares have plunged 25 per cent this 12 months, largely resulting from blowback over Mr. Musk’s affiliation with U.S. President Donald Trump. But Tesla additionally faces intensifying competitors from the large Detroit automakers and significantly from China.
Telsa gross sales have fallen precipitously in Europe after Mr. Musk aligned with a far-right political celebration in German.
Sales plunged 40% in July in the 27 European Union international locations in contrast with the 12 months earlier, whilst gross sales general of electrical automobiles soared, based on the European Automobile Manufacturers’ Association.
Meanwhile, gross sales of Chinese rival BYD continued to climb quick, grabbing 1.1% market share of all automobile gross sales in the month versus Tesla’s 0.7%.
In its most up-to-date quarter, Tesla reported that quarterly income plunged from $1.39 billion to $409 million. Revenue additionally fell, and the corporate fell wanting even the lowered expectations on Wall Street.
Investors have grown more and more frightened in regards to the trajectory of the corporate after Mr. Musk had spent a lot time in Washington this 12 months, turning into one of the distinguished officers in the Trump administration in its bid to slash the scale of the U.S. authorities.
Last month, Tesla mentioned that it gave Mr. Musk a inventory grant of $29 billion as a reward for years of “transformative and unprecedented” development regardless of a current foray into right-wing politics that has damage its gross sales, income and its inventory worth.
The award arrived eight months after a choose revoked Mr. Musk’s 2018 pay package for a second time, one thing the corporate famous in August. Tesla has appealed the ruling.
Tesla mentioned on the time that the grant was a “first step, good faith” method of retaining Mr. Musk and retaining him centered, citing his management of SpaceX, xAI and different corporations. Musk mentioned not too long ago that he wanted extra shares and management so he could not be ousted by shareholder activists.
Tesla’s inventory rose practically 2% in pre-market buying and selling.
