Key Takeaways
1. Tesla’s board is proposing a new pay package for Elon Musk, potentially making him a trillionaire if accepted.
2. The proposal requires Musk to significantly grow Tesla’s market cap from $1.1 trillion to $8.5 trillion over the next decade.
3. Musk must increase Tesla’s yearly profit to $400 billion, up from last year’s $17 billion.
4. Additional goals include achieving 20 million cumulative vehicle sales and attracting 10 million monthly subscribers to Full Self-Driving software.
5. If successful, Musk’s ownership stake in Tesla could increase from 13% to 25%, enhancing his influence in the company.
Tesla’s board is putting forth a plan for its stakeholders to vote on Elon Musk’s new pay package. If the proposal is accepted, known as the 2025 CEO performance award, it would give the billionaire $900 billion in Tesla shares, making him a trillionaire.
Conditions for Approval
However, the proposal that will be discussed at the upcoming annual general meeting on November 6, 2025, includes some tough terms. Musk’s pay depends on Tesla’s growth in size, profit, and product success.
Currently, Tesla’s market cap is around $1.1 trillion. Over the next decade, Musk needs to increase that number to $8.5 trillion to receive his huge payout. To put this into perspective, Nvidia, which started in 1993, is the largest company globally today, with a market value of about $4.2 trillion. Microsoft, which has been around since 1975, is valued at $3.8 trillion. This means Tesla must become twice the size of Nvidia and almost eight times its current worth.
Financial Goals
Another requirement is that Musk must boost Tesla’s yearly profit to $400 billion. Last year, the car company reported an operating profit of $17 billion. Additionally, he needs to increase the sales of Tesla products. Musk is also aiming for 20 million cumulative vehicle sales, with 10 million subscribers to Full Self-Driving (FSD) software each month, plus one million Tesla Bots and one million Robotaxis in service.
If Musk achieves these milestones, his ownership stake in Tesla would rise from 13% to about 25%, giving him greater influence over the electric vehicle firm.
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