Elon Musk in Line for $1T Payout

Tesla CEO Elon Musk could be in line for a payout of $1 trillion if his electric car company meets a series of extremely aggressive targets over the next 10 years, according to documents released by the company. Tesla, which is leaning heavily into robotics and AI, said in a regulatory filing on Friday that the package has a dozen share tranches that include awards for Musk if targets, ranging from car production to the total value of the company, are met over that time period, reports the AP. Very early in the plan, Tesla would have to reach a market valuation of $2 trillion and achieve 20 million vehicle deliveries. Tesla delivered less than 2 million vehicles in 2024. That milestone would also require a million robotaxis in commercial operation and the delivery of 1 million artificial intelligence 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 Nov. 6. Tesla's last shareholders meeting was on June 13 of last year, where investors voted to restore Musk's record $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.

The goals set out for Musk and Tesla are extremely ambitious given recent tumult at the Texas company. Tesla shares have plunged 25% this year largely due to blowback over Musk's affiliation with President Trump. But Tesla also faces intensifying competition from the big Detroit automakers and particularly from China. Last month Tesla said that it gave Musk a stock grant of $29 billion as a reward for years of "transformative and unprecedented" growth despite a recent foray into right-wing politics that has hurt its sales, profits and its stock price. Tesla's stock rose nearly 2% in premarket trading.