Tesla’s board has introduced a bold new compensation package for CEO Elon Musk, potentially worth up to $975 billion, aimed at securing his leadership as the company pursues ambitious growth in artificial intelligence, robotics, and autonomous vehicles.
The plan, announced on September 5, 2025, would grant Musk up to 423.7 million additional Tesla shares over the next decade, contingent on the company achieving significant milestones. These include doubling Tesla’s current market capitalization to $2 trillion for the first award, with further targets up to $8.5 trillion, alongside operational goals such as delivering 20 million vehicles, securing 10 million Full Self-Driving (FSD) subscriptions, producing 1 million robots, and operating 1 million robotaxis.
The proposed package comes amid ongoing legal battles over Musk’s 2018 compensation plan, valued at $56 billion but later adjusted to $101 billion, which was struck down twice by a Delaware court for being unfair to shareholders. Despite shareholder approval in June 2024, the court ruled that the Tesla board lacked independence in negotiating the deal. The new plan, which requires shareholder approval at Tesla’s November 6, 2025, annual meeting, aims to incentivize Musk to remain focused on Tesla, especially as he juggles leadership roles at SpaceX, xAI, Neuralink, and The Boring Company, alongside recent political activities.
Additionally, Tesla’s proxy statement includes a shareholder proposal to consider investing in xAI, Musk’s artificial intelligence company, which could further integrate his business ventures. The company has not taken a stance on this proposal, which lacks details on the potential stake or cost. Analysts, such as Wedbush Securities’ Dan Ives, argue that the substantial compensation is justified to retain Musk, whom they view as critical to Tesla’s future in the AI and robotics era. However, critics question the scale of the package, noting Musk’s existing 18% stake in Tesla—worth approximately $139 billion—and his significant wealth from other ventures, estimated at $378 billion by Bloomberg.
Tesla’s stock has faced volatility, nearly doubling after the 2024 U.S. election due to Musk’s ties to President Donald Trump, but later declining 26% from its December peak amid protests and falling sales.
Despite these challenges, Musk remains optimistic about Tesla’s potential, particularly with its robotaxi service and humanoid robot development, which he believes could drive unprecedented growth.