Tesla (NASDAQ:TSLA) has asked shareholders to approve a new performance-based pay package for CEO Elon Musk, according to a Friday filing.
The proposal includes 12 tranches of stock awards to be granted if the EV maker hits certain milestones over the next decade. It would also grant Musk greater voting control over the company and aspiring robotics titan, a demand he has voiced since early 2024.
To unlock the first tranche, Tesla must nearly double its valuation to $2 trillion and hit a cumulative 20 million vehicle production and deliveries milestone.
Additional goals for Musk to reach under the 2025 CEO Performance Award include hitting adjusted EBITDA benchmarks and and rolling out new or expanded product offerings (including 1 million Robotaxis in commercial operation and delivery of 1 million AI Bots).
“In 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award,” the filing read.
Chairwoman Robyn Denholm told CNBC that the plan is designed to keep Musk “motivated and focused on delivering for the company.” Musk remains politically entangled while juggling multiple ventures, including SpaceX, The Boring Company, Neuralink, and the AI startup xAI, which has merged with his social platform X.
In addition, the automaker is also seeking shareholder approval for a potential investment in Musk’s AI venture, xAI.
Tesla (NASDAQ:TSLA) shares rose 2% premarket Friday.