Tesla shares are on the move again, climbing nearly 18 percent in September after a jaw-dropping new proposal for CEO Elon Musk hit the headlines. The company’s board has put forward a plan that could see Musk earn what is being called the largest pay package in corporate history, valued at up to one trillion dollars.
According to reports, the deal is entirely performance based. Musk won’t see a penny unless Tesla meets an ambitious list of milestones. These include growing the company’s market cap to $8.5 trillion, producing 20 million vehicles annually, delivering one million robotaxis and one million humanoid robots, and signing up 10 million paying customers for its Full Self-Driving software. If Tesla misses, Musk walks away empty-handed.
Investors, however, seem to be betting that he won’t. The stock’s sharp rally suggests the market views the package as a bold way to keep Musk fully engaged at a time when Tesla is facing mounting competition from rivals like BYD in China and established automakers in the US and Europe.
Some analysts point out that Musk’s previous 2018 pay deal, then valued at $56 billion, was also considered outrageous but ended up delivering as Tesla smashed through its targets. That track record is fueling optimism that history could repeat itself. Others argue that these new goals are even more audacious, essentially requiring Tesla to transform from an electric car company into a robotics and AI powerhouse.
The proposal has also reignited debates about corporate governance. Critics question whether any single executive should hold so much potential control, while supporters say Musk’s vision and relentless drive are precisely why Tesla has managed to dominate the EV market for so long.
This comes at a critical moment. EV demand growth has slowed in some markets, and Tesla has seen its market share slip. Tying Musk’s compensation directly to future breakthroughs might be exactly the signal Tesla needs to send—that it is not just defending its turf but planning to leap far ahead.
Whether the company can actually pull off milestones like one million working humanoid robots is anyone’s guess. But one thing is clear: Tesla has never been afraid of big bets, and neither has Musk. This pay package is simply the latest in a long line of high-risk, high-reward moves.
