Tesla’s board has unveiled a staggering compensation plan for CEO Elon Musk, potentially worth $900 billion, that could make him the world’s first trillionaire—if he hits astronomical targets like an $8.5 trillion valuation. Is this a bold bet on Musk’s genius or a risky move that could shake Tesla to its core?

Elon Musk, the enigmatic billionaire steering Tesla, SpaceX, and X, is no stranger to defying expectations, but the latest proposal from Tesla’s board has sent shockwaves through the business world. Announced in September 2025, a new compensation package could see Musk become the world’s first trillionaire, with a potential payout of up to $900 billion in Tesla stock if he achieves audacious goals, including boosting the company’s market capitalization to $8.5 trillion over the next decade. With Tesla’s current valuation at $1.1 trillion, the plan—set for a shareholder vote on November 6—has sparked fierce debate: Is this a visionary incentive to keep Musk focused, or a reckless gamble that prioritizes one man over the company’s future?

A Pay Package Unlike Any Other

The proposed package, dubbed the 2025 CEO Performance Award, would grant Musk 423.7 million additional Tesla shares, currently valued at $143.5 billion. To unlock the full payout, Musk must elevate Tesla’s market cap to more than eight times its current value, a feat that would dwarf Nvidia’s $4.2 trillion valuation, the current global leader. The plan also sets operational milestones, including deploying one million autonomous robotaxis, producing one million AI-powered robots, and achieving a 24-fold profit increase. These targets, described as “unprecedented in corporate history,” would require Musk to remain at Tesla for at least 7.5 years, with the full payout vesting after a decade.

Musk, already the world’s richest person with a $378 billion net worth, currently holds 410 million Tesla shares (13% of the company) and options for 304 million more, which a Delaware court struck down twice as illegal despite shareholder approval. The new package, if approved, could raise his stake to nearly 29%, granting him extraordinary control. Tesla’s board, led by chair Robyn Denholm, insists that “retaining and incentivizing Elon is fundamental to Tesla becoming the most valuable company in history.” But with Musk juggling SpaceX, Neuralink, and X, and even threatening to pursue “other interests” without such incentives, is this massive payout a necessity or a power play?

Controversy and Criticism

The scale of the package has drawn sharp criticism. Some investors, like Ross Gerber of Gerber Kawasaki, argue it’s justified only if Musk meets the ambitious targets, which could make Tesla “twice as valuable as Nvidia.” Others, however, see it as excessive. “It’s a question of greed,” Gerber remarked, noting Musk’s 13% stake is already worth $139 billion. Critics also point to Tesla’s challenges, including declining EV sales and growing competition from Chinese automakers like BYD. Musk’s focus on robotaxis and AI, while visionary, remains unproven, with analysts like Gordon Johnson questioning his promises of fully autonomous vehicles since 2014.

The proposal also includes a shareholder suggestion that Tesla invest in Musk’s AI firm, xAI, which recently acquired X (formerly Twitter) for $44 billion. While Tesla hasn’t taken a stance on this, it raises concerns about conflicts of interest, as Musk could further consolidate his business empire. With his attention split across multiple ventures and political endeavors, including plans for a third political party, can Musk deliver the focus Tesla needs to justify this historic payout?

A Visionary or a Risk?

Musk’s track record lends weight to the board’s confidence. His 2018 compensation plan, once deemed unattainable, propelled Tesla to new heights, proving skeptics wrong. Supporters, like Wedbush analyst Dan Ives, call the new package a “$1 trillion decision” to keep Musk, Tesla’s “biggest asset,” driving innovation in the AI era. Yet, the sheer scale of the plan—potentially worth more than the GDP of many nations—invites scrutiny. If successful, Musk’s current holdings alone could approach $1 trillion at an $8.5 trillion valuation, even without the new shares. But if he fails, or if his divided focus falters, Tesla’s shareholders could bear the cost.

As the November vote looms, the world watches: Will Musk’s audacious goals redefine corporate ambition, or is this a step too far? Can one man’s vision justify a trillion-dollar reward, or will Tesla’s bet on its mercurial CEO reshape the future of business? The stakes couldn’t be higher, and the outcome will define Musk’s legacy—and Tesla’s—for generations.