Tesla CEO Elon Musk publicly acknowledged a jaw-dropping pay package worth as much as $1 trillion, according to Canadian investment news site BayStreet.
The electric vehicle manufacturer endured extraordinary volatility in 2025, difficulties attributed in no small part to Musk's ongoing political involvement in the United States and abroad.
Musk's words and deeds caused considerable brand image difficulties for Tesla in the United States, and that backlash quickly became global. For better or worse, Tesla's brand identity is deeply intertwined with its CEO's personality, which has proved to be both an asset and a liability.
Among broader concerns about Tesla's sharp ups and downs were fears that the brand's woes would discourage drivers from making their next car an EV. On that front, Tesla faced novel competition from several affordable EV competitors gaining market share in the chaos.
After Musk barreled through the United States federal government with a metaphorical chainsaw, Tesla's seemingly indomitable sales faltered in the U.S. and Europe. As Musk wound down his government stint in May, longtime Tesla bulls feared the damage was irreversible.
However, Tesla's trajectory wasn't solely on the downswing, and scattered upward sales trends emerged in some markets. Faced with diverse challenges, the electric vehicle manufacturer appeared to settle on a strategy of going all in on Musk's leadership.
In an August letter to shareholders, Tesla announced plans to "reward" Musk with a $29 billion pay package in the form of stock, presumably incentivizing him to keep share prices high.
One month later, in another shareholder letter, Tesla upped the stakes significantly, both in terms of compensation and Musk's time commitment to the brand. The Board proposed a compensation package worth an estimated $1 trillion, causing some pushback.
A few weeks after the Board's second letter, a self-identified Tesla fan and investor tweeted to encourage fellow investors to vote in favor of the latter pay package. Musk responded to the tweet to justify the gargantuan figure, claiming the Board was future-proofing his leadership.
"It's not about 'compensation,' but about me having enough influence over Tesla to ensure safety if we build millions of robots," Musk began, before disclosing concerns about potential internal opposition.
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"If I can just get kicked out in the future by activist shareholder advisory firms who don't even own Tesla shares themselves, I'm not comfortable with that future," he concluded.
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