Elon’s $1 Trillion Windfall Only Needs a Touch of World Domination, Nothing Too Serious | Carscoops
The compensation package is based on an $8.5 trillion valuation, $400 billion in EBITDA, and 1 million Robotaxis.
Musk's 2025 CEO award aims for an $8.5 trillion market cap by 2035. The targets include achieving $400 billion in annual EBITDA, deploying 1 million Robotaxis, and producing 1 million AI bots. He must remain with Tesla for up to 10 years before the shares can fully vest.
Whether admired or criticized, Elon Musk has established himself as someone who can make the seemingly impossible appear achievable. His achievements range from electric vehicles thriving in worldwide markets to rockets that autonomously land with precision. Yet, even for an individual with such accolades, the 2025 CEO Performance Award presented by Tesla’s board poses an unprecedented challenge.
The award could grant Musk over 423 million shares and a total compensation package valued at approximately $1 trillion, contingent on Tesla meeting significant milestones. The award is divided into 12 tranches, with each tranche unlocking upon reaching specific market capitalization targets.
As detailed in the SEC filing regarding the package, the first tranche is set at $2 trillion, followed by nine further tranches at $500 billion increments, and the last two tranches at $1 trillion each, aiming for an astonishing $8.5 trillion valuation by 2035. Currently, Tesla's market value exceeds $1 trillion.
However, the market cap is just one aspect. Musk also needs to achieve at least $400 billion in sustained annual adjusted EBITDA—essentially the company's earnings from core operations before taxes, interest, or non-cash costs like depreciation.
In addition, he faces ambitious operational targets that venture into new territories, such as deploying 1 million fully autonomous Robotaxis and delivering another 1 million Optimus AI robots.
As of now, Robotaxis still require a safety driver, meaning these objectives are not mere theory; they necessitate advancements in autonomy, scaling, and execution. This package compels a critical evaluation of Musk's track record. While he is undoubtedly a visionary, he has often been accused of over-promising and under-delivering, frequently falling behind schedule on technological promises, not to mention his political involvement.
Placing His Legacy on Autonomy
If Musk can indeed meet all the requirements outlined in this compensation package, it will be difficult to dispute his status as a defining innovator of our time. However, the board has structured this award such that Musk cannot simply achieve the targets and cash out.
He must stay at Tesla for between 7.5 to 10 years, with goals needing to be met by 2035. Tesla remarked that it “believes that Mr. Musk’s vision and leadership are critical to executing that plan.”
At this juncture, all of Musk's promises regarding autonomy become even more compelling. His salary and possibly his legacy depend on his success in positioning Tesla at the forefront of autonomy sooner rather than later.
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Elon’s $1 Trillion Windfall Only Needs a Touch of World Domination, Nothing Too Serious | Carscoops
The compensation package is based on a value of $8.5 trillion, $400 billion in EBITDA, and 1 million Robotaxis.