Tesla shareholders have approved a new pay package for Elon Musk that could make him one of the richest people in corporate history. This is the start of his trillion-dollar journey with the company, but the approval is just the beginning. To unlock the full payout, Musk must lead the company through a demanding set of goals that will test its innovation, growth, and leadership in the global market.
A huge pay package with a lot at stake
Tesla’s new pay plan, which was announced in early September 2025, includes 12 main groups of stock options that are tied to specific market and operational goals. These options are worth a total of 424 million shares, which means that if all of Musk’s goals are met, he could own about 25% of Tesla.
Before the approval, Musk owned about 13% of the company. In the past, he had sold shares. The new package is set up so that he will only get paid if Tesla continues its rapid growth, with both practical and financial goals.
There is a way to get $8.5 trillion.
Every one of the 12 tranches is linked to a different operational goal and a market capitalization level. The first goal is for Tesla’s market value to hit $2 trillion, which is not too far from where it is now ($1.5 trillion).
To get the whole package, the company needs to hit an amazing valuation of $8.5 trillion while also completing tasks like
Giving away its 20 millionth car,
Putting 1 million robotaxis to work,
Getting rid of a million Optimus robots and
Tesla made $16.6 billion last year, so this year they hope to make $400 billion in EBITDA.
The "lock-in" clause
Tesla has made sure that Musk will stay with the company for a long time. The shares he gets from this package can’t be sold for at least 7.5 years after he gets them, but he can vote with them right away. This condition keeps him from cashing out early and makes sure that he stays in line with the company’s vision in the long run.
Opinions of Experts and Views from Wall Street
Some experts say Musk’s automaker could have given Musk special voting stock instead of such a big payment, but Musk says that’s not possible because of how Musk’s automaker business is set up. Some critics, like Glass Lewis, have raised concerns about how flexible the plan is, pointing out that EV giant’s board has the power to release certain tranches even if Musk fails to meet some of his goals.
Bulls on Wall Street are still positive, even though there is debate. Wedbush Securities’ Dan Ives thinks that the company’s market value could reach $2 trillion by the beginning of 2026 and could reach $3 trillion by the end of that year. This is because EV giant is making more self-driving cars and robots.
For now, Elon Musk’s dream of a trillion-dollar Tesla depends on how well he can push the company to change not only the car business but also the future of AI, robotics, and energy.
