Tesla has proposed a huge $1 trillion compensation plan for its CEO Elon Musk, and many of the benchmarks he needs to hit are just the promises he has spent years making to the company.
That’s not a picture drawn by Tesla’s board of directors in the company Annual Agent Statementthey revealed the proposed compensation plan. Instead, the board focuses on planning how to create “the most valuable company in history.”
To be sure, if Tesla meets the goal of this deal, it looks like a very different company at the end of the 10-year period covered. That hasn’t changed the milestones that the company demanded Musk’s goal, rather than the ambitiousness of his previously stated goals.
While shareholders still need to approve unprecedented compensation benefits at a meeting in November, it’s easy to see the company’s keen fan base vote “yes.” The previous vote on Musk’s compensation has been overwhelmingly approved by Tesla shareholders.
With that in mind, let’s look at what Musk needs to do to get the full spending.
20 million cars
Musk spend Year Claims Tesla can build 20 million electric cars each year By 2030. This is when he and his company still promise to grow at a rate of 50% per year.
But Tesla got rid of these promises as sales growth stagnated, and then Reversal in 2024. The company then extracted 2 billion targets per year from its impact report last yearand stop building planned factories in Mexico Will increase production.
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Now, Tesla’s first “product goal” on the road achieved by Musk is to deliver 20 million cars All. Tesla has sold 8 million cars to date, and even with sales trends, it still drives below 2 million each year.
With the new compensation plan being laid out over 10 years, this means the target has ranged from 20 million EV per year by 2030 to a total of 20 million by 2035.
One million robotaxis*
One of Musk’s most notorious and outrageous promises about Tesla was in 2019, when he claimed the company would have There are 1 million robots on the road in 2020. It’s now 2025 Safety driver on board.
To access his full proposed salary package, Tesla asked Musk to help the company achieve a changed version of the promise, as another product listed target is “one million robots in commercial operations.”
This is a warning goal. The exquisite prints show that Tesla only requires one “daily average summary” of 1 million robots. [Tesla] As part of the transportation service, for three consecutive months. ”
Tesla continues to define “Robotaxi” as any Tesla car, including but not limited to the specially built “network cabinets” it is developing, that is, using the company’s complete autonomous driving software to provide people with rides.
This includes the vehicles owned by customers, another thing Musk has long promised but never delivered. He spent years claiming that Tesla could flip digital switches and turn existing vehicles into fully autonomous vehicles, and that owners could add these vehicles to a larger fleet of robots at will.
But Musk said since then Many Teslas on the road currently do not have the necessary hardware In order for the former to happen, the company has not yet proved the latter. Anyway, Musk now has a looser schedule to try these two things.
One million “robots”?
Musk believes that Tesla’s future is the humanoid robot it is developing, called Optimus Prime. Just this week, he claimed it could account for 80% of the company’s future revenue.
As he became more focused on Optimus Prime, Musk made some very crazy promises about his future appearance. One of his core claims is that Tesla will make one million Optimus Prime each year go through As early as 2029.
However, as part of the proposed compensation plan, Tesla’s board of directors simply asked Musk to provide one million “robots”. Tesla also defines “robots” as “any robot or other physical product that uses artificial intelligence using AI made on behalf of the company”, although the company’s vehicles do not count.
The directors seem to agree that Optimus Prime has “the potential to be Tesla’s best-selling product,” they say, “the clearest example of how Tesla has the ability to benefit autonomy.”
But the board also pointed out that Optimus Prime’s “commercialization plan” is “still under development” and Musk will not reach a million points until 2035.
Everything else
The fourth and final product goal Musk must achieve is to provide 10 million active subscriptions to Tesla’s fully autonomous driving (FSD) software. It can be said to be the most ambitious product target. The company did not say how much the current owner paid for FSD, although executives recently said Adoption rate In “Youth”. At best, this means that from hundreds of thousands to millions of Tesla cars installed the software.
Everything that Tesla’s board of directors asked Musk to be related to money. Ultimately, Musk needs to help Tesla reach a $8.5 trillion valuation to release the full value of the compensation package and become ten million miles himself.
Musk already has a grand design to accomplish something similar. He often claims that Tesla may one day be more valuable than the sum of Apple and Saudi Aramco. According to current valuations, the two companies are worth about $5.5 trillion. But earlier this year, the CEO claimed that Tesla’s value may be more valuable than The most variable company merger next – That meant that his goal was to get closer to a $15 trillion trademark.
In addition to blowing up Tesla’s valuation, Musk was asked to increase the company’s revenue to essentially $400 billion a year, a huge figure, compared with about $17 billion last year.
Finally, Tesla’s board of directors asked Musk to provide two notable guarantees to unlock the full value of the compensation package. One of them is that he has to work with the company to develop plans to make him successful as CEO of Tesla (which basically locks him to the company for at least 7.5 years).
Another thing buried in the footnote is that Tesla gets “Musk’s assurances for participation in the political field will be reduced in time.”
Overall, it’s a complex deal with many real sky ideas about where Tesla can go under Musk’s leadership over the next decade. The same is true about the previous compensation agreement between Tesla and Musk Back in 2018However, the company has achieved all the seemingly euro targets. (Musk’s award is ultimately Dust settled by Delaware School Court)
Still, it’s hard not to notice that these new goals seem to come from the company’s attempt to drag its CEO’s commitment back to Earth.
