Tesla surprised the market again by announcing a compensation plan of historic dimensions for its CEO, Elon Musk. This is a ten-year plan that, if the proposed goals are met, could grant the businessman more than a trillion dollars in shares.

The objective declared by the board of directors is clear: to retain Musk at the helm of the company and at the same time encourage unprecedented growth in its stock market valuation.

The official document, published on the website of the United States Securities and Exchange Commission (SEC), establishes that Musk will receive Tesla shares as the company reaches certain capitalization levels. If, for example, the company achieves a valuation of $2 trillion dollars, the CEO would obtain close to $20 billion dollars in shares.

The most ambitious scenario

The compensation scheme is designed with several stages of objectives. The most ambitious of all proposes that Musk could control up to an additional 12% of Tesla, provided the company reaches a market capitalization of $8.5 trillion. This level would easily surpass any historical record, as it would double the highest valuation ever reached by a company: Nvidia, a leader in semiconductors and artificial intelligence. If this goal is achieved, Musk would not only consolidate his place as the richest man on the planet, but would also increase his shareholding in Tesla to 25%. In doing so, he would strengthen his direct influence on the company's strategic decisions, ensuring almost absolute control over its future. A company in a challenging phase Although Tesla remains one of the most valuable car manufacturers in the world, the company faces a complex reality. Its current stock market valuation is around $1 trillion,but its sales have slowed down in recent months.

Among the causes are the wear and tear of its model range, which has lost freshness compared to competitors, and the controversial figure of Musk, whose political activity has generated divided reactions in the market.

The paradox is evident: while Tesla struggles to maintain its attractiveness in sales and new launches, compensation is being discussed that project scenarios of practically unattainable wealth.

Compensation shrouded in controversy

The debate over how much Elon Musk should earn at Tesla is not new. In 2018, shareholders approved an extraordinary payment plan valued at $56 billion. However, this scheme became the center of a prolonged legal dispute.

In January 2024, a Delaware judge invalidated the plan, considering that shareholders had received "erroneous" and "misleading" information in the process prior to its approval. Although the package was ratified again by shareholders in June 2024, the courts rejected it again in December of that same year.

Tesla did not sit idly by. The company appealed the court decision and formed a special committee to review the case. In the company's own words: "Elon Musk's compensation remains in legal limbo despite two separate shareholder votes that overwhelmingly supported it."

Shareholder Support in the Courts

Shareholder support for Musk has been consistent, even when the courts have blocked his compensation plans.

For many investors, Musk's vision remains indispensable to Tesla's future, not only in the field of electric vehicles, but also in the integration of new technologies such as autonomous driving and artificial intelligence applied to mobility.

Even so, the Delaware courts have been steadfast in their arguments regarding the transparency and legitimacy of the approval process. This struggle between shareholder will and court decisions keeps uncertainty surrounding the payments Musk could receive.

Despite the litigation environment, Tesla awarded Elon Musk a package of 96 million shares in August 2025. Its estimated value was $29 billion, a figure that reinforces the magnitude of the ongoing debate about how high a CEO's compensation should be, even for a figure as disruptive and relevant as Musk.

For the company, keeping the entrepreneur at the helm remains strategic. Tesla faces increasingly aggressive rivals,especially Chinese electric vehicle manufacturers and technology giants that see smart mobility as a new area for expansion.

An unprecedented future or a bubble?

The potential of this new plan places Tesla and Elon Musk in an unprecedented position in global financial history. Reaching a capitalization of $8.5 trillion would not only double Nvidia's record, but also transform Tesla into a giant whose value would surpass many national economies.

The big question is whether this growth is realistic or if it responds more to a narrative that seeks to protect Musk as the undisputed leader of the company. Between the unwavering support of shareholders, legal obstacles, and market challenges, the path to this "stratospheric" fortune seems to be far from resolved.

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