Tesla’s Controversial Pay Package for Elon Musk Raises Investor Concerns

Tesla's board proposed a historic $878 billion compensation package for Elon Musk in September, tied to ambitious performance goals. While framed as requiring transformative achievements in robotics, autonomous vehicles, and financial metrics, Reuters analysis reveals the targets may be easier to hit than investors realize.

The package includes loosely defined milestones that could yield massive payouts without delivering expected breakthroughs. One target calls for 10 million subscriptions to Tesla's Full Self-Driving software—regardless of whether it achieves true autonomy. Analysts note this could be met through price reductions rather than technological progress.

Similarly vague is a goal to deploy one million robots, with no requirement they be humanoid. Even the robotaxi benchmark, while specifying no human driver, might permit remote control systems. These findings raise questions about corporate governance and alignment with shareholder interests.