Tesla’s $1 Trillion+ Pay Package for Elon Musk

Tesla just dropped a bombshell: its board has proposed a record-breaking compensation plan for Elon Musk that could top $1,000,000,000,000 (that’s over one trillion dollars). But of course, there’s a catch.

“A Tesla logo is pictured on a car in the rain in the Manhattan borough of New York City” [Image]. Tesla has not yet applied for robotaxi permits in California, state regulators say, Reuters, 5 May 2021, reuters.com/business/autos-transportation/tesla-has-applied-arizona-robotaxi-service-certification-state-transport-2025-07-10. Accessed 10 Sept. 2025.

How the deal works

The plan runs for 10 years and would reward Musk with Tesla shares depending on how high the company’s stock market value goes.

• If Tesla hits $2 trillion, Musk pockets around $20 billion in shares.

• At the very top end? A stratospheric $8.5 trillion valuation would unlock the full package equivalent to Musk getting about 12% of Tesla’s current capital.

To put that into perspective: $8.5 trillion is more than double the market value of Nvidia, the current world leader in market cap. Right now, Tesla is valued at just over $1 trillion, so Musk has some climbing to do.

Why this matters

If Musk manages to pull this off, he wouldn’t just reinforce his status as the world’s richest person, he’d also boost his control over Tesla to nearly 25% ownership. Basically, he’d tighten his grip on the company while reaching a level of personal wealth humanity has never seen before.

The board says this new pay plan is designed to “retain and motivate” Musk at Tesla.

“Tesla Logo on a Car in the Rain in Manhattan, New York City” [Image]. Reuters, 5 May 2021, reuters.com/business/autos-transportation/tesla-has-applied-arizona-robotaxi-service-certification-state-transport-2025-07-10. Accessed 10 Sept. 2025.

The legal drama

Musk’s pay has been a hot legal topic for years. A 2018 package worth $56 billion was approved by shareholders but later struck down in 2024 by a Delaware judge, who said shareholders had been misled.

• June 2024: shareholders voted again to approve the plan.

• December 2024: Delaware court struck it down again.

• 2025: Tesla appealed and set up a special committee to study Musk’s pay.

Meanwhile, in August 2025, Tesla still awarded Musk millions of shares worth about $29 billion as a sort of “in-between” compensation.

What’s next?

For this new trillion-dollar package to become reality, shareholders need to give it the green light and German regulators aren’t the only ones watching. Courts are still circling the issue, and Tesla’s financial struggles (aging lineup, political controversies) could make this an uphill climb.

But if anyone thrives on impossible goals, it’s Elon Musk. And if this plan passes, the world might just see the first trillionaire in history.