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Tesla’s $1 Trillion Elon Musk Award Faces New Questions Over Payout Triggers

New disclosures highlight 12 stock tranches that pair valuation steps with operational metrics, fueling concern that lower hurdles could unlock large grants.

Overview

  • Tesla investors approved the performance-based package earlier this month, described as the first $1 trillion CEO award.
  • The plan uses 12 restricted-stock tranches that vest only when a market-cap threshold aligns with an operational milestone.
  • Market-cap targets start at $2 trillion and rise in $500 billion increments to $8.5 trillion over a ten-year window.
  • Operational goals cited include selling 1 million robots, deploying 1 million robotaxis, delivering 20 million cars, reaching up to $400 billion in EBITDA, and securing 10 million full self-driving subscriptions.
  • A reported mechanic grants 35.312 million restricted shares when a new valuation step is hit plus any one operational target, a structure critics say could enable large partial payouts as supporters argue it aligns incentives.