Tesla CEO Elon Musk may pocket tens of billions from his new $878 billion pay package even if he misses the company’s most ambitious technological goals, a Reuters review found.
The board touted the plan as tied to “Mars-shot” milestones in AI, robotics and autonomous driving, but experts say many targets are vague or easy to reach, allowing Musk to secure stock awards without major innovation.
By meeting only a few performance goals—such as moderate vehicle sales and FSD subscriptions—Musk could earn over $50 billion. Achieving two basic goals with steady stock growth could net him $26 billion, analysts said.
Critics argue the plan rewards Musk even if Full Self-Driving remains non-autonomous, since it only requires an “advanced driving system.” Others note the robot targets are undefined enough to include non-humanoid machines.
While the board insists shareholders benefit if Tesla’s valuation doubles, governance experts say the package risks giving Musk huge power with little accountability. Profit goals of up to $400 billion EBITDA appear far harder to reach than the market-value milestones, which analysts say could happen naturally over time.
