Tesla CEO Musk's Compensation Package Sparks Controversy: Can Earn Tens of Billions of USD Annually Even Without Meeting Performance Targets

  • 2025-10-09

 

IT Home, October 9th news, according to a Reuters report today, Tesla's board of directors granted CEO Elon Musk the highest executive compensation package in history this September. At that time, board members assured investors that the CEO would only receive a 10-year-long Tesla stock award worth $878 billion (approximately 6.26 trillion RMB at current exchange rate) as compensation after achieving performance goals comparable to "landing on Mars."

The board pointed out that Musk must achieve "groundbreaking feats that completely alter human perception" in areas such as autonomous driving, robotics, and Robotaxi, and also significantly increase Tesla's stock price and profits. If these ambitious goals are not met, he "won't get a cent."

However, today, Reuters, after analyzing its public performance targets and interviewing over a dozen executives, market capitalization, robotics, and autonomous driving experts, found that Musk could still earn tens of billions of dollars even without achieving most of the aforementioned performance targets.

Experts pointed out that Musk only needs to achieve some easily attainable targets to receive over $50 billion (approximately 356.471 billion RMB at current exchange rate) in stock awards. These targets do not fundamentally innovate Tesla's products/business model. Consequently, by merely achieving two inconsequential targets amid moderate stock price growth, he could earn $26 billion (approximately 185.365 billion RMB at current exchange rate), surpassing the lifetime total compensation of Meta CEO Zuckerberg, Apple CEO Cook, NVIDIA CEO Jensen Huang, and others.

Automotive industry experts believe that Musk's "sales target" is very easy to achieve. If Tesla sells an average of 1.2 million vehicles annually over the next 10 years, it could increase Tesla's market capitalization from the current $1.4 trillion (approximately 9.98 trillion RMB at current exchange rate) to $2 trillion (approximately 14.26 trillion RMB at current exchange rate) by 2035, allowing the CEO to receive $8.2 billion (IT Home note: approximately 58.461 billion RMB at current exchange rate) in compensation.

Furthermore, the definition of another target, "FSD reaching 10 million subscriptions," is relatively vague. Some experts believe that the "full self-driving" promoted by Tesla lacks an industry definition and is a "fabricated term." Moreover, Musk could easily achieve the target simply by reducing the price of FSD subscriptions.

Tesla and Musk have not yet responded to Reuters' request for comment.

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