Elon Musk’s $1 Trillion Tesla Pay Package Approved

Tesla shareholders approved a historic pay package for CEO Elon Musk worth up to $1 trillion. The approval came from 75% of shareholders during the annual general meeting on Thursday. Musk, who owns about 13% of Tesla, and his brother Kimbal, also a board member, participated in the vote.

Conditions for the Payout

This unprecedented pay package is contingent on ambitious performance targets rather than a simple grant. The $1 trillion will be distributed in 12 tranches of stock options, each unlocking after specific financial and operational milestones are reached.

The first milestone starts when Tesla’s valuation reaches $2 trillion.
Full vesting requires Tesla’s valuation to hit approximately $8.5 trillion.
Currently, Tesla’s market capitalization stands at $1.54 trillion.
Operational goals include delivering 20 million vehicles cumulatively over the next decade.
This target exceeds Tesla’s total vehicle production over the previous 12 years by more than twofold.

Elon Musk will become the first dollar trillionaire if all targets are met.

Summary

The pay package aligns Musk’s rewards with Tesla’s growth, requiring massive increases in market value and vehicle deliveries to unlock the full $1 trillion payout.

Author’s Summary

Elon Musk’s $1 trillion Tesla pay package links his immense reward to extraordinary company growth, incentivizing unprecedented vehicle production and valuation milestones.

Finance Magnates — 2025-11-07