Tesla’s new pay plan could make Elon Musk first trillionaire in history

Tesla's board is proposing a plan for stakeholders to vote on Elon Musk’s new compensation package. If approved, the pay package, known as the 2025 CEO performance award, would grant the industrialist billionaire $900 billion in Tesla stock, effectively making him a trillionaire.

However, the proposal that the board would present at the next annual general meeting on November 6, 2025, comes with some formidable terms and conditions. Musk only gets this pay if Tesla grows in size, profit, and product success.

Presently, Tesla’s market cap or total share value is about $1.1 trillion. Over the next ten years, Musk must raise that to $8.5 trillion to get his massive payout. For comparison, Nvidia, established in 1993, is the world’s largest company today, with a market capitalization of approximately $4.2 trillion. Microsoft, worth $3.8 trillion, has been in business since 1975. Essentially, Tesla would need to be twice as big as Nvidia today and nearly eight times bigger than it is now.

A second target is that Musk has to raise Tesla’s annual profit to $400 billion every year. Last year, the auto company turned in $17 billion in operating profit. This is in addition to increasing the sales of Tesla products. He also needs to achieve 20 million cumulative vehicle sales with 10 million people subscribing to Full Self-Driving (FSD) software monthly, one million Tesla Bots, and one million Robotaxis in operation.

If Musk succeeds, his Tesla ownership would grow from 13% of the company to about 25%, giving him even more control over the EV company.