(NewsNation) — Tesla is asking shareholders to approve a compensation package for CEO Elon Musk that could be worth nearly $1 trillion if the electric vehicle maker hits certain milestones over the next decade.
In a regulatory filing Friday, Tesla outlined a package of 12 share tranches tied to targets that include reaching a $2 trillion market cap, producing and delivering 20 million vehicles annually, rolling out 1 million robotaxis, and deploying 1 million AI-powered robots. Tesla delivered fewer than 2 million vehicles in 2024.
Musk would need to stay at Tesla for at least seven and a half years to access any of the stock, and the full 10 years to earn the complete payout. The plan would also increase his voting power at the company.
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Musk would later be required to create a framework for Tesla’s next CEO.
That milestone would also require a million robotaxis in commercial operation and the delivery of 1 million artificial intelligence bots.
The proposal comes as Tesla faces steep challenges: Its shares are down 25% this year, quarterly profits plunged from $1.39 billion to $409 million, and revenue fell short of expectations. The company is also under pressure from rising competition in the U.S. and China, while Musk’s deep involvement in President Donald Trump’s administration has fueled investor concerns about his focus.
Shareholders will vote on the package at Tesla’s annual meeting on Nov. 6. Last year, they restored Musk’s record $44.9 billion pay deal, which had been struck down in court.
