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Tesla CEO Elon Musk could earn up to USD 1 trillion over the next decade if the company achieves a set of highly ambitious targets, according to documents disclosed on Friday as reported by AP.
In a regulatory filing, Tesla outlined a compensation package with rewards linked to targets related to vehicle production, market value, and expansion into robotics and AI.
Among the earliest milestones, Tesla would need to hit a USD 2 trillion market valuation and deliver 20 million vehicles, compared with fewer than 2 million in 2024. The plan also requires deploying 1 million robotaxis in commercial service and rolling out 1 million AI-powered humanoid bots.
Musk needs to remain with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount.
Musk has been one of the richest people in the world for several years.
Musk would also receive more voting power over Tesla under the proposed plan. The EV company is set to hold its annual shareholders meeting on November 6. Tesla’s last shareholders meeting was on June 13 of last year, where investors voted to restore Musk’s record USD 44.9 billion pay package that was thrown out by a Delaware judge earlier that year.
A condition of the 11th and 12th tranches of the plan includes Musk coming up with a framework for someone to succeed him as CEO.
Tesla shares have plunged 25 per cent this year largely due to blowback over Musk’s affiliation with President Donald Trump. But Tesla also faces intensifying competition from the big Detroit automakers and particularly from China.
Telsa sales have fallen precipitously in Europe after Musk aligned with a far-right political party in German.
Sales plunged 40 per cent in July in the 27 European Union countries compared with the year earlier even as sales overall of electric vehicle soared, according to the European Automobile Manufacturers’ Association.
In its most recent quarter, Tesla reported that quarterly profits plunged from USD 1.39 billion to USD 409 million. Revenue also fell and the company fell short of even the lowered expectations on Wall Street.
Investors have grown increasingly worried about the trajectory of the company after Musk had spent so much time in Washington this year, becoming one of the most prominent officials in the Trump administration in its bid to slash the size of the US government.
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Tesla said at the time that the grant was a “first step, good faith” way of retaining Musk and keeping him focused, citing his leadership of SpaceX, xAI and other companies. Musk said recently that he needed more shares and control so he couldn’t be ousted by shareholder activists. Tesla’s stock rose nearly 2 per cent in pre-market trading.
(With Inputs From Agencies)
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