Elon Musk package: Tesla board files $1 trillion Musk pay plan if 12 goals met; targets include robotaxis, AI bots – The Times of India

Tesla CEO Elon Musk could be in line for a payout worth as much as $1 trillion if the electric carmaker meets a series of highly ambitious targets over the next decade, according to a regulatory filing released on Friday, the news agency AP reported.The proposed package includes a dozen share tranches linked to goals ranging from vehicle deliveries to market valuation. Tesla would need to hit a $2 trillion market cap, deliver 20 million cars, deploy one million robotaxis, and roll out one million AI-powered bots early in the plan. Musk must stay with the company for at least seven and a half years to cash out on any stock, and 10 years to receive the full amount.The filing also noted that the 11th and 12th tranches require Musk to present a framework for succession planning. The EV maker’s annual shareholders’ meeting is scheduled for November 6. At its last meeting in June 2024, investors restored Musk’s earlier $44.9 billion pay package that had been struck down by a Delaware court.The targets come as Tesla battles declining sales, intensifying competition from Detroit rivals and China’s BYD, and a sharp erosion in its European market share. The European Automobile Manufacturers’ Association reported Tesla sales in the EU plunged 40% year-on-year in July, dropping its market share to 0.7% while BYD rose to 1.1%.Tesla’s financials have also faltered. Quarterly profit fell to $409 million from $1.39 billion a year earlier, with revenue missing Wall Street’s lowered forecasts. Investors have expressed concern about Musk’s focus, with the billionaire spending much of this year in Washington as a prominent figure in President Donald Trump’s administration.Despite the turbulence, Tesla said the package was designed to “retain and incentivize Elon” and align his performance with shareholder value. Last month, Tesla awarded Musk a $29 billion stock grant as a “first step” in retaining him, even as a Delaware judge revoked his 2018 pay deal for a second time. Tesla has appealed the ruling.Tesla shares rose nearly 2% in premarket trading on Friday following the filing.