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Tesla Offers Elon Musk Pay Package That Could Make Him A Trillionaire
Bank of Tesla // Illustration by Kate Walker
Tesla’s board has proposed a pay package for CEO Elon Musk that could make him the world’s first trillionaire — if he stays at the company for the next decade and hits some extremely ambitious financial targets.
The Big Bet: While Tesla was once the frontrunner in the EV revolution, it has recently lost significant ground to competitors in both the US and abroad. And with Musk’s attention constantly shifting to other companies and politics, Tesla sees keeping its controversial leader focused as essential to long-term success — a point emphasized by both the company’s board chair and director in their proposal.
Behind The Package: No matter how focused Musk may be, reaching the full potential of the proposed pay package will be a steep challenge.
The package is valued at $900 billion in Tesla shares (at the current price), which would give him control of 29% of the company — a rare level of ownership.
But he would have to lead Tesla to an annual operating profit of $400 million (24x more than last year) and raise its valuation to $8.5 trillion (it’s currently $1.1 trillion).
He would also need to sell a total of 20 million cars by 2035 (up from eight million) and deploy one million robotaxis and one million Optimus robots globally — both of which generate barely any revenue today.
He would additionally need to create a succession plan for when he inevitably steps down at the end of the contract (yeah, they’re handing him the ole Silicon Valley exit strategy).
Final Offer: According to Forbes, Musk is currently worth $400 billion. Combined with the proposed $900 billion in compensation, that would land him in a party-of-one, 12-figure club. The pay would be awarded piecemeal as he hits certain benchmarks and commits to remaining CEO for at least seven and a half years.
That is, of course, if shareholders approve the package on November 6th — though they still haven’t signed off on the 2018 plan, which is still mired in litigation. And not everyone thinks Musk deserves such unprecedented compensation, especially when Tesla has faltered while he also runs SpaceX, X, xAI, Neuralink, and… you get the idea.
Prediction: There’s no way Tesla can hit those financial targets through car sales alone, so it will have to lean on its emerging technologies to reshape the business. That’s a big gamble.
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Today’s email was written by David Vendrell.
Edited, Polled, and Copy-edited by Kait Cunniff.
Published by Darline Salazar.