Elon Musk has clarified that his ambitious proposed Tesla 2025 CEO Performance Award is driven by a desire for influence rather than personal wealth. The award, which could be worth up to $900 billion in Tesla stock, would position Musk as the world’s first trillionaire if he meets the challenging performance targets set for the electric vehicle manufacturer.
Understanding the Performance Award
Musk expressed his thoughts on social media platform X, addressing concerns regarding his compensation package. He emphasized that the award is not merely about financial gain but ensuring he maintains sufficient control over Tesla. “It’s not about ‘compensation,’ but about me having enough influence over Tesla to ensure safety if we build millions of robots,” he stated in a post. He further articulated his discomfort with the idea of being removed by activist shareholder advisory firms that do not hold shares in Tesla.
The new performance award enables Musk to earn shares as Tesla grows from its current valuation of $1.1 trillion to an astonishing $8.5 trillion over the next decade. Achieving this level would make Tesla the largest company by valuation, surpassing industry giants like Apple, Nvidia, and Microsoft.
Ambitious Goals for Growth
To qualify for this substantial award, Musk must lead Tesla to an operating profit of $400 billion annually, a dramatic increase from the company’s current operating profit of approximately $17 billion. Musk’s ownership stake in Tesla would also rise significantly from 13% to about 25% as the company’s valuation increases.
Tesla’s board has highlighted the importance of retaining Musk to reach these ambitious milestones. The performance award extends beyond financial metrics, including critical targets related to Tesla’s core products and emerging technologies. These objectives encompass delivering 20 million vehicles cumulatively, achieving 10 million active Full Self-Driving subscriptions, deploying 1 million robots, and launching 1 million Robotaxis.
Musk’s focus on influence reflects a broader strategy for Tesla as it seeks to innovate and expand its market presence in the increasingly competitive electric vehicle landscape. By tying his compensation to these ambitious goals, Musk aims to ensure that he remains at the helm of the company during a transformative period for both Tesla and the automotive industry as a whole.