By Steve Jurvetson
A great leader is a major asset for any company — but can anyone truly be worth $1 trillion? That is the staggering pay package Tesla shareholders have now approved for Elon Musk, contingent upon him meeting a series of ambitious performance targets over the next decade.
Under the deal, Musk will not receive a traditional salary in the meantime but is expected to dedicate himself even more intensely to the company’s mission. The billionaire seemed energised at Tesla’s headquarters in Texas, dancing and celebrating the shareholder vote before a cheering audience. “Other shareholder meetings are snoozefests,” he declared, “but Tesla’s are bangers.”
A Divisive Figure with Loyal Supporters
Elon Musk remains one of the most polarising figures in global business. He has drawn fierce criticism for his political commentary, his alignment with former US President Donald Trump, his attacks on government programmes, and his vocal support for far-right causes abroad.
Yet, despite this, he retains a massive following among those who see him as a visionary capable of reshaping industries. His supporters — including the majority of Tesla shareholders — voted overwhelmingly to back his unprecedented new pay package.
Financial analyst Dan Ives of Wedbush Securities said the decision made sense for investors. “If Musk succeeds — and I think he will — he will have created trillions of dollars in shareholder value. That’s ample payback,” Ives said.
“Tesla Without Musk Is Like Pizza Without Cheese”
Ives compared Musk to “a modern-day Albert Einstein or Thomas Edison,” adding that without this enormous incentive package, there was a real risk that Musk could eventually walk away from Tesla, taking his artificial intelligence ventures with him.
“Tesla without Musk is like pizza without cheese,” he remarked.
Ives, who does not personally hold Tesla stock, believes Musk’s talent lies in his willingness to explore areas others shy away from — a mindset that could help him achieve the extraordinary goals laid out in his compensation plan.
“There’s edgy behaviour, there are haters, but many people love that,” Ives said. “That’s why he’s the richest person in the world. Does it help sell cars in Europe? No. But does it help Tesla win the AI race? Absolutely.”
The “Musk Premium” and Tesla’s Sky-High Valuation
Musk’s outspoken political behaviour has provoked protests, including demonstrations outside Tesla showrooms earlier this year. However, London-based analyst Matt Britzman of Hargreaves Lansdown says the impact on Tesla’s bottom line is minimal.
He believes roughly a third of Tesla’s $1.4 trillion market valuation can be attributed to what he calls the “Musk premium” — the belief among investors that Tesla’s future potential is inseparable from its CEO’s vision.
“It’s not a $1.4 trillion company based on the current car business,” Britzman said. “It’s a $1.4 trillion company based on what people believe it can achieve in the next three years.”
For many investors, those expectations hinge on Musk’s track record of thinking boldly and planning long-term.
Lofty Targets and Astronomical Rewards
The scale of Musk’s potential reward is as immense as his ambitions. A $1 trillion payout could buy 20 million Model Y Teslas, each priced at around $50,000. Alternatively, it could buy a $10 million mansion every day for 250 years — with money left over for furnishing.
To earn this package, Musk must meet a series of extraordinary performance goals, including the production of 20 million vehicles, one million humanoid robots, and one million fully self-driving Robotaxis. In addition, Tesla’s market capitalisation must soar from its current $1.4 trillion to $8.5 trillion.
“These are incredibly high milestones,” said Ann Lipton, a law professor at the University of Colorado. However, she noted that Tesla’s board retains discretion over when certain goals are considered achieved.
“If intervening events prevent him from reaching the goals, the board can still deem them met,” Lipton explained — suggesting the targets may be less rigid than they appear.
No Constraints on Musk’s Political Commentary
The terms of Musk’s new compensation package impose no restrictions on his political speech or public commentary.
“Even after the pay package was proposed, he didn’t pull back from political commentary,” said Professor Lipton. “So it seems whatever the goals are, they’re not going to stop him from saying or doing whatever he wants.”
That freedom, however, could be a double-edged sword.
A Visionary — or a Distraction?
According to Stephanie Valdez Streaty, director of industry insights at Cox Automotive, Musk’s brilliance is also his biggest risk.
“He’s a visionary, but he’s unpredictable,” she said. “It’s possible that his other interests could distract him again — as they have in the past — causing him to neglect Tesla, which is already a complex business with many moving parts.”
She added that Tesla’s board now faces the challenge of ensuring Musk stays focused. “I’m hoping he’s learned from his political involvement and how that hurt his brand and sales. But it’s up to the board to keep him within the guardrails and focused on what’s right for Tesla.”
Reaching for the Sky — or Mars
If Musk can stay on course, the rewards — for him and for Tesla — could be astronomical. His ambitions have always been as high as the stars, sometimes literally.
“People laughed when his 2018 pay package was approved,” Professor Lipton noted. “And he hit those milestones well ahead of schedule.”
Now, with a $1 trillion prize at stake, Musk’s next chapter could see him push Tesla — and himself — to even greater heights. Whether those heights stop at the sky or stretch all the way to Mars remains to be seen.
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