Tesla has unveiled a proposed $1 trillion compensation package for CEO Elon Musk, but many of the milestones attached to it are scaled-back versions of the ambitious targets Musk has previously set for himself and the company.
The plan, outlined in Tesla’s latest proxy statement, is designed to span the next decade and must still win shareholder approval in November. Given Musk’s loyal investor base and past overwhelming support for his pay deals, analysts say the proposal is likely to pass.
Revised product goals
- 20 million vehicles: Musk once pledged Tesla would produce 20 million electric cars per year by 2030. That goal has been replaced with a requirement to deliver 20 million vehicles in total by 2035. Tesla has already sold around 8 million cars and currently produces just under 2 million annually.
- 1 million robotaxis: In 2019, Musk claimed Tesla would deploy one million self-driving robotaxis by 2020. Today, the company has only a small pilot fleet in Austin, Texas. The new package reframes the goal as maintaining a “daily average aggregate” of 1 million robotaxis in commercial service, including customer-owned Teslas using Full Self-Driving.
- 1 million humanoid robots: Tesla’s board cites Optimus, its humanoid robot project, as potentially its best-selling product. While Musk previously suggested annual production of 1 million bots by 2029, the new milestone simply requires 1 million robots total by 2035.
- 10 million Full Self-Driving subscribers: Perhaps the toughest benchmark, Tesla is aiming for 10 million active subscriptions to its FSD software. Current adoption is believed to be in the low millions at best.
Financial targets
Beyond products, the board wants Musk to guide Tesla to an $8.5 trillion market valuation, more than Apple and Saudi Aramco combined, and boost annual earnings to around $400 billion, up from $17 billion last year.
Conditions
Two notable clauses stand out. Musk must work with the board on a CEO succession plan, effectively tying him to Tesla for at least 7.5 years. The package also includes “assurances” that Musk will wind down his political involvement in a “timely manner.”
Related: The Boring Company Begins Testing Tesla’s Self-Driving Tech in Las Vegas Tunnels
Looking ahead
The proposal mirrors Musk’s 2018 pay deal, which was also criticized as unrealistic but ultimately achieved, before being struck down by Delaware’s Chancery Court. Whether this new package anchors Tesla to more practical goals or simply resets the stage for Musk’s next big promises remains to be seen.
