— Tesla Inc. on Friday proposed a 10-year compensation plan that could be worth roughly $1 trillion if CEO Elon Musk meets a set of ambitious targets, including scaling a nascent robotaxi business and lifting Tesla’s market value to at least $8.5 trillion from about $1 trillion today, Bloomberg reported.
Key Takeaways
- Proposal value: about $1 trillion over a 10-year period if all benchmarks are met.
- Main conditions: growth of Tesla’s robotaxi operations and a company market valuation target of at least $8.5 trillion.
- Current reference market value: roughly $1 trillion.
- Plan is described as unprecedented in size for a corporate pay package in the U.S.
- Package is intended to retain Musk and align his long-term incentives with Tesla’s growth plans.
- Details such as shareholder approval and precise vesting mechanics remain to be finalized.
Verified Facts
Tesla presented a proposed compensation agreement for CEO Elon Musk that spans a decade and ties potential payouts to a sequence of performance milestones. The proposal was publicly reported on September 5, 2025.
One of the explicit benchmarks is expanding Tesla’s robotaxi business — a strategic area the company has flagged as a future revenue driver that would require vehicle, software and regulatory advances to scale commercially.
The package also conditions awards on Tesla reaching a market capitalization of at least $8.5 trillion, compared with the roughly $1 trillion market value cited in reports at the time of the proposal. The plan’s full value would be realized only if all stipulated goals are met over the 10-year term.
| Metric | Approx. Now | Proposal Target |
|---|---|---|
| Company market value | ~$1 trillion | $8.5 trillion |
| Plan duration | — | 10 years |
| Potential payout | — | ~$1 trillion |
Context & Impact
If adopted, the package would dwarf typical CEO pay awards and reshape discussions about executive incentives, corporate governance and shareholder returns. Large, performance-based awards are sometimes used to retain founders, but the scale reported is historically large.
Shareholders, proxy advisors and market participants will likely scrutinize the plan’s performance metrics, dilution effects, and assumptions behind the valuation targets. Regulators and institutional investors may evaluate whether the structure aligns board oversight with long-term shareholder interests.
Market reaction — including share trading and analyst commentary — could influence how quickly the proposal proceeds through whatever internal and regulatory approvals are required. Implementation would also depend on clear, verifiable milestones for robotaxi commercialization and sustained value creation.
Official Statements
Tesla did not immediately provide a public comment on the proposal when it was reported.
Tesla (no immediate comment)
Unconfirmed
- Whether and when the board will finalize and submit the plan for shareholder approval.
- Exact vesting schedule, payout timing and tax treatment of any awards.
- Specific regulatory clearances or revenue timelines assumed for large-scale robotaxi operations.
- Market assumptions underpinning the $8.5 trillion target and the probability assigned to hitting that valuation.
Bottom Line
The proposed package underscores Tesla’s and Elon Musk’s focus on long-term, high-growth objectives—especially autonomous mobility—but raises immediate governance and feasibility questions. Investors and regulators will watch for more detail on how targets are measured, shareholder votes, and the commercial path for robotaxis.