Tesla Approves $1 Trillion Pay Deal for Elon Musk Amid AI Talent Concerns

Tesla's board has greenlit a monumental 10-year compensation package for CEO Elon Musk, valued at up to $1 trillion. The deal, approved on Friday, grants Musk 96 million restricted shares upfront—worth $31 billion at current prices—with a five-year vesting period. Equilar estimates total 2025 compensation could exceed $113 billion if performance targets are met.

The board framed the package as essential to retaining Musk and securing Tesla's future in artificial intelligence and robotics. "A Super Ambitious Incentive Package for a Pioneering, Ambitious and Unique CEO" read the filing, emphasizing Musk's irreplaceable role in Tesla's next phase.

Negotiations spanned seven months, with Musk demanding 25% ownership and full strategic control. The filing reveals Musk repeatedly threatened to depart, raising concerns about an exodus of AI talent. The restricted stock allocation partially compensates for Musk's voided 2018 pay package.