Tesla Announces New Compensation Plan: Musk Might Become World’s First Trillionaire

On September 6, 2025, Tesla announced a new compensation plan that could make CEO Elon Musk the world’s first trillionaire if the company achieves several extremely ambitious targets over the next ten years. The plan grants Musk company shares in 12 tranches, totaling up to 12% of the company, tied to metrics including vehicle production, stock price, and operating profit. Once approved by shareholders, Musk could acquire enormous wealth through these shares, though the targets are extremely demanding.

Analysts note that to earn the first tranche, equivalent to 1% of company shares, Musk would need to convince investors to raise Tesla’s market value to $2 trillion and achieve other milestones; to fulfill all conditions, the company’s market value would need to reach $8.5 trillion, far exceeding the world’s current most valuable companies. The plan also requires sales of 20 million vehicles and one million units each in robotics and self-driving taxi businesses. Musk must remain in his role for at least seven and a half years, with full vesting after ten years.

However, Tesla’s EV growth has slowed, partly due to Musk’s political stances, especially alliances with Trump and far-right groups in Germany, leading to a 40% drop in European sales. Chinese competitors like BYD continue to expand, and Tesla’s market share lags behind rivals. Recent quarterly earnings showed a significant profit decline and revenue below expectations. Investors worry about Musk’s activities in Washington and social media remarks impacting the brand, but analysts consider the plan prudent since Musk remains Tesla’s greatest asset. The company will hold a shareholder meeting on November 6 to vote on the plan and grant Musk additional voting rights to prevent shareholder activism from affecting company control.