Tesla shareholders have approved a record-breaking compensation plan for CEO Elon Musk, potentially worth up to $1trillion over the next decade, though some reporting frames the likely payout at around $878billion based on plan mechanics.
The proposal passed on November 6, 2025, with more than 75% shareholder support, making it the largest executive pay package in corporate history.
How the pay package works
The compensation is entirely performance-based, with no guaranteed payout. Musk must remain Tesla’s CEO for at least 7.5 years to qualify for any portion of the award. The package consists of approximately 424million restricted Tesla shares, distributed across 12 tranches that vest only when specific performance thresholds are achieved.
Shares earned in the first five years vest at 7.5 years, while those from the second five years vest at 10 years, and Musk must remain an approved Tesla executive at the time of vesting to receive them.
The “Mars Shot” targets
To unlock the full payout, Tesla must meet a series of ambitious milestones over the next decade. These include increasing its market capitalization from around $1.5trillion to $8.5trillion, scaling annual vehicle production to 20million units, and deploying one million autonomous robotaxis. The company is also expected to sell one million Optimus humanoid robots, reach 10million Full Self-Driving subscriptions, and generate up to $400billion in EBITDA.
Why it matters
The plan is designed to secure Musk’s long-term leadership while directly linking his compensation to Tesla’s most aggressive growth ambitions. It signals strong shareholder backing for a high-risk, high-reward strategy aimed at transforming the company’s scale and capabilities.
Impact on Musk’s Wealth
Musk became the richest person in history in February 2026, with a net worth of $852 billion following the merger of SpaceX and xAI. If Tesla meets its targets, the new pay package, combined with his existing holdings and a potential SpaceX IPO, could position him to become the world’s first trillionaire by 2026 or 2027.
In a separate development, the Delaware Supreme Court reinstated Musk’s 2018 Tesla compensation package in December 2025, previously valued at approximately $138billion after it had been overturned by a lower court.
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