Tesla (TSLA) stock climbed sharply on Friday after the electric-vehicle maker revealed an eye-popping new compensation plan for CEO Elon Musk. The proposal, filed with the Securities and Exchange Commission, would award Musk a package worth roughly $1 trillion if he hits a series of ambitious performance milestones over the coming decade. Shares jumped as much as 4.9% in early trading before paring gains to remain more than 2% higher by mid-morning.
According to the filing, Musk would be eligible for the massive payout if he can push Tesla’s market capitalization to an unprecedented $8.5 trillion and successfully deploy one million of the company’s much-anticipated “Robotaxis” into commercial operation. The board’s plan outlines several other milestones tied to both financial performance and product execution, reflecting Tesla’s drive to cement its position at the forefront of the global shift toward autonomous and electric vehicles.
If the targets are met, Musk would receive an additional 423 million shares of Tesla common stock, equivalent to about 12% of the company’s current shares outstanding. That would lift his total voting power to roughly 25%, giving him an even greater ability to shape Tesla’s strategic direction at a moment analysts describe as the most pivotal in the company’s history.
Wedbush Securities analyst Dan Ives wrote in a note to clients Friday that the voting-power element of the proposal is “critical to keep Musk at the helm to lead Tesla through the most critical time in the company’s history.” He added: “We believe this was the smart move by the Board as the biggest asset for Tesla is Musk… This is a crucial time for Tesla ahead, with autonomous and robotics front and center.”
The stock’s intraday high reflected investor excitement over the proposed package, which many see as an incentive for Musk to double down on Tesla’s core businesses while accelerating new initiatives such as AI-driven mobility and large-scale manufacturing of next-generation vehicles. However, some market participants also noted that such an enormous award raises questions about governance and shareholder dilution, particularly as Tesla faces intensifying competition from legacy automakers and new EV entrants.
As of 1:11 p.m. EDT, Tesla shares were trading at $349.33, up 3.19% on the day, after briefly touching higher levels earlier in the session. The board’s plan, which still requires shareholder approval, will be closely watched by investors and regulators alike, setting the stage for a high-stakes vote that could define the next chapter of Tesla’s growth — and Musk’s influence over it.
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