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Tesla’s board has proposed a historic $1 trillion compensation package for Elon Musk, making it the largest corporate pay plan ever. The proposal underscores Musk’s influence over Tesla as it transforms into an AI and robotics-driven company, despite a legal battle still ongoing over his 2018 pay plan worth $56 billion.

If approved, Musk could gain up to 12% of Tesla’s stock, valued at about $1.03 trillion, provided the company reaches a market cap of $8.6 trillion—an eightfold increase over the next decade. The award is structured in tranches tied to both market value and operational milestones, such as mass production of robotaxis and humanoid robots. Musk predicts that Optimus humanoid robots alone could eventually account for 80% of Tesla’s value, potentially pushing the company’s worth to $25 trillion.

Unlike traditional packages, Musk would receive no salary or cash bonus; all rewards depend entirely on performance, echoing his 2018 deal. Tesla’s board argues this is vital to keep him committed, while critics warn it could dilute shareholder value, raise governance concerns, and give Musk even more control—he already holds about a 13% stake in the company.

The proposal comes at a politically sensitive time: Musk has recently announced the launch of the “America Party”, clashing with Donald Trump over tax and spending policies, fueling investor worries about distractions. Despite this, analysts believe the plan will likely pass, as “what Elon wants, Elon gets,” highlighting the board’s confidence in him.

A shareholder vote on the package is scheduled for November 2025.