- Tesla ties Musk’s $1T pay plan to diluted goals on EVs, robotaxis, and bots.
- Shareholder approval in November is highly likely.
- Biggest challenge: reaching $8.5T valuation and $400B in annual earnings.
Tesla has proposed a staggering $1 trillion compensation plan for CEO Elon Musk, framing it as a pathway to creating “the most valuable company in history.” But a closer look at the fine print reveals that many of the milestones required for Musk to unlock the payout are diluted versions of promises he has already made in past years.
The package, outlined in Tesla’s annual proxy statement, will go to a shareholder vote in November. Given Tesla investors’ history of overwhelmingly approving Musk’s pay deals, the proposal stands a strong chance of passing.
20 Million Cars — But Over a Decade
Musk once pledged Tesla would produce 20 million vehicles annually by 2030, a goal that has since been dropped as sales slowed and factory expansion plans were shelved. Under the new plan, the target has been watered down to 20 million total vehicles delivered by 2035. With nearly 8 million already sold, the company only needs to maintain modest growth to meet the requirement.
Robotaxis and AI Bots in Focus
Another condition ties Musk’s payout to launching 1 million robotaxis in commercial operation, a revision of his 2019 claim that Tesla would field a million self-driving cabs by 2020. The company is currently only testing a handful in Austin.
The deal also includes a goal to build 1 million humanoid “Optimus” robots by 2035. This is far less ambitious than Musk’s earlier projection of producing that many per year by 2029. Tesla has yet to finalize commercialization plans for Optimus, but the board insists it could one day be the company’s best-selling product.
The Road to $8.5 Trillion Valuation
Perhaps the most ambitious target is financial: Tesla must hit an $8.5 trillion market valuation and grow annual earnings to $400 billion, up from about $17 billion in 2024. While Musk has boasted that Tesla could surpass Apple and Saudi Aramco combined, the new plan sets a slightly more grounded path.
Also Read: Tesla Sales Plunge 40% in Europe as BYD Surges 225%
Tesla’s proposal signals a balance between Musk’s sky-high ambitions and the company’s need to establish achievable benchmarks. If approved, the plan will tie Musk to Tesla for at least 7.5 more years, with clear milestones around cars, robotaxis, humanoid robots, and financial performance. Whether these scaled-back goals are bold enough to justify a trillion-dollar payday remains to be seen.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
