• Source:JND
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Elon Musk, already the world’s richest person, could become the planet’s first-ever trillionaire under a newly proposed Tesla compensation plan. But the potential payout, valued at nearly USD 1 trillion in Tesla stock, comes with conditions so demanding that analysts describe it as “the largest and riskiest executive compensation package in history.”

According to Tesla’s proxy filing, the package could award Musk nearly 423.7 million additional shares, representing about 12 per cent of Tesla’s total stock. If all conditions are met, his stake in the company could rise to almost 29 per cent, cementing his influence for years to come.

Unlike traditional executive payouts, this plan ties Musk’s wealth to Tesla’s long-term performance. Partial vesting of the shares requires him to remain as CEO for at least 7.5 years, while full vesting demands a 10-year commitment. Musk will not be able to sell the stock immediately, though he will retain voting power.

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“This isn’t cashing out, it’s locking in,” one analyst noted, highlighting the unusual nature of the arrangement. “The payout looks massive on paper, but Musk can only unlock it if Tesla hits almost mythical targets.”

The Targets: Robotaxis, Robots And $8.5 Trillion Valuation

To secure the full payout, Musk must drive Tesla’s market capitalisation from its current USD 1.1 trillion to USD 8.5 trillion, a figure no automaker has ever achieved. In addition, Tesla must successfully deploy one million autonomous taxis and humanoid robots, placing the company at the forefront of mobility and AI innovation.

These benchmarks reflect Musk’s long-standing vision of transforming Tesla from a car manufacturer into a leader in robotics and artificial intelligence. However, achieving such growth in just a decade would require Tesla to redefine entire industries.

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This is not the first time Tesla has attempted to incentivise Musk with outsized rewards. A 2018 pay package, valued at over USD 50 billion, was later struck down by a Delaware court. Earlier this year, Tesla’s board floated a USD 30 billion interim stock award to retain Musk’s focus.