Tesla Inc. has offered its CEO a compensation package that could net him USD 1 trillion if he meets a number of specific goals over the next decade.
This was announced in a Bloomberg report.
The unprecedented move appears to be aimed at encouraging Musk to get back into business. In the past year, his interests have expanded far beyond the four companies he runs: Musk has dabbled in politics and decided to form a party after being ousted from the White House.
To receive the promised bonus, Musk will have to spend a lot of time working at Tesla, whose business continues to suffer from his past political activism and increased competition, primarily from Chinese electric car manufacturers.
The package was designed to align the company's "exceptional shareholder value over the long term with incentives that maximize the performance of our visionary leader," Tesla Chairman Robyn Denholm wrote in a letter to shareholders who must approve the proposal.
"Retaining and incentivizing Elon" Denholm called "fundamentally necessary for Tesla… to become the most valuable company in history."
Tesla's board has set a number of ambitious goals, including developing a self-driving taxi business, which the company only began testing in real-world conditions in June, and achieving a market capitalization of USD 8.5 trillion. In this case, Musk would receive 12% of the company's shares, which would be worth just over USD 1 trillion. Together with the shares he already owns, his stake would reach 25%; Musk has previously said he would like to control a stake of that size.
Achieving the capitalization goal will be difficult. At the end of last year, it reached USD 1.5 trillion, and now it is less than USD 1.1 trillion. The most valuable company in the world, the chip manufacturer Nvidia, is worth about USD 4 trillion. In addition to Tesla, Musk has three more companies - xAI, Neuralink and Boring.
In addition, in early July he announced his intention to launch his own political party. However, the process of its creation has slowed down due to Musk's desire to focus on business and his unwillingness to enter into conflict with influential members of the Republican Party, from which his union will inevitably take away votes.
Tesla's business is in serious trouble. Sales in the second quarter fell by almost 14% compared to the same period in 2024, revenue decreased by 12% to USD 22.5 billion (which was the most significant drop in more than a decade), net profit by 16% to USD 1.17 billion. At the end of last year, Tesla lost first place in the world in sales of electric cars to China's BYD.
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