Tesla Inc.’s board has unveiled a staggering new compensation proposal for Chief Executive Elon Musk, one that could catapult him to trillionaire status if the electric-vehicle giant achieves unprecedented growth targets over the next decade. The plan, which ties Musk’s rewards to aggressive performance milestones, underscores the company’s bet on transformative technologies like autonomous driving and robotics, while raising questions about executive incentives in an era of volatile markets.

Details of the package reveal it could be worth up to $900 billion or more, contingent on Tesla reaching a market valuation of $8.5 trillion—more than eight times its current level of just over $1 trillion. As reported by Engadget, the board is framing this as a motivational tool to keep Musk focused amid his sprawling empire, including SpaceX and xAI.

The Ambitious Milestones Ahead

To unlock the full payout, Musk must hit a series of escalating benchmarks, including revenue growth, profitability thresholds, and advancements in AI-driven products. This isn’t just about selling more cars; it hinges on Tesla evolving into a broader tech powerhouse, with robotaxis and humanoid robots potentially driving exponential value.

Critics argue the targets border on the fantastical, given Tesla’s recent challenges, such as slowing EV demand and regulatory scrutiny over self-driving claims. A New York Times analysis highlights how the package would grant Musk additional voting power, potentially solidifying his control over strategic decisions.

Shareholder Vote and Historical Context

The proposal still requires approval at Tesla’s annual shareholder meeting on November 6, as noted in coverage from Teslarati. This comes after a Delaware court voided Musk’s previous $56 billion package earlier this year, prompting the board to craft an even bolder successor.

Supporters view it as alignment of interests, ensuring Musk’s skin in the game matches Tesla’s high-stakes ambitions. Yet, governance experts worry about the dilution of shares and the precedent for outsized CEO rewards in public companies.

Implications for Tesla’s Future

If approved, the plan could accelerate Tesla’s push into uncharted territories, like full autonomy, where Musk has made bold—sometimes overstated—promises. A recent Forbes piece details ongoing legal battles over these claims, including a class-action suit and regulatory probes in California.

For industry insiders, this package signals Tesla’s all-in wager on Musk’s vision, potentially reshaping executive compensation norms across tech and automotive sectors. CNN Business reports that success here could make Musk the world’s first trillionaire, dwarfing current billionaires.

Balancing Risks and Rewards

Skeptics point to Musk’s divided attentions, with ventures like Neuralink and The Boring Company competing for his time. The board’s proposal includes clauses to ensure his commitment, but enforcement remains a gray area.

Ultimately, this compensation saga reflects broader tensions in corporate America: rewarding innovation versus safeguarding shareholder value. As Tesla navigates economic headwinds and competition from rivals like BYD and legacy automakers, the outcome of this vote could define its trajectory for years to come, with Musk’s trillion-dollar incentive hanging in the balance.