Tesla Offers "Crazy" $1 Trillion Pay Package to Musk

Tesla Inc. has proposed a new compensation package for CEO Elon Musk potentially worth around $1 trillion—a record-setting deal without precedent in corporate America, Dana Hull reported for Bloomberg News.

If fully awarded, the package would raise Musk’s stake in Tesla to at least 25%. (Photo: Aubrey Gemignani, NASA Flickr) 

The long-awaited plan, designed to lock Musk into leading Tesla for the next decade, ties payouts to a series of ambitious benchmarks, including expanding Tesla’s robotaxi business and raising the company’s market valuation to at least $8.5 trillion from about $1 trillion today.

If fully awarded, the package would raise Musk’s stake in Tesla to at least 25%, in line with what he has publicly demanded.

The deal offers Musk—already the world’s richest person—a massive windfall and greater control of the company after his earlier $50 billion compensation plan from 2018 was struck down by a Delaware court.

While Tesla appeals that ruling, the board has been exploring other ways to pay Musk, including an interim stock award in August valued at about $30 billion.