Tesla’s $1 Trillion CEO Pay Package Reflects Scaled-Back Targets Amid Past Overpromises

Tesla Unveils Ambitious Yet Tempered $1 Trillion Pay Plan for Elon Musk

Tesla has introduced a proposed $1 trillion compensation package for CEO Elon Musk, contingent on a series of long-term performance milestones. While the company’s board frames this as a pathway to making Tesla “the most valuable company in history,” the targets Musk must meet are notably less aggressive than his earlier public promises.

Revised Production Targets Mark a Shift

Among the product goals, Tesla expects Musk to oversee the delivery of 20 million vehicles total by 2035. This represents a substantial revision from Musk’s previous assertion that Tesla would produce 20 million electric vehicles annually by 2030. Tesla has already sold approximately eight million vehicles to date, with recent annual sales just under two million units, reflecting a slowdown that has prompted the company to abandon plans for a new Mexico factory and remove the 20-million-per-year goal from its impact report.

Robotaxi Ambitions Tempered but Still Significant

One of Musk’s most ambitious and widely publicized claims was the deployment of one million robotaxis on the road by 2020. As of 2025, Tesla has only initiated limited trials involving a small fleet in Austin, Texas. The new compensation terms require achieving a “daily average aggregate” of one million robotaxis in commercial operation over a consecutive three-month period by 2035. Notably, Tesla’s definition of robotaxis includes any vehicle equipped with its Full Self-Driving software providing rides, encompassing customer-owned cars — a feature Musk has long promised but which remains unrealized due to hardware limitations and software development delays.

Optimus Bot Production Goal Also Scaled Back

Musk has positioned Tesla’s humanoid robot, Optimus, as a core future revenue driver, previously forecasting production of one million units annually as soon as 2029. The board’s current target is more modest: producing one million bots total by 2035. The definition of “bots” extends to any AI-enabled mobile robot manufactured by Tesla, excluding vehicles. While recognizing Optimus’s potential, Tesla acknowledges that commercialization plans are still evolving.

Full Self-Driving Subscriptions and Valuation Targets

Another product milestone requires reaching 10 million active subscriptions to Tesla’s Full Self-Driving (FSD) software. Current adoption rates reportedly remain in the “teens,” implying a significant ramp-up is necessary. Financially, Musk must help elevate Tesla’s market capitalization to $8.5 trillion and achieve annual earnings near $400 billion, a dramatic increase from recent figures around $17 billion.

Governance and Political Commitments

To unlock the full pay package, Musk must collaborate on a CEO succession plan effectively binding him to Tesla for at least 7.5 years. Additionally, Tesla has secured assurances that Musk will reduce his political engagements within a reasonable timeframe, signaling the board’s desire for focused leadership.

Outlook and Shareholder Considerations

The proposed compensation plan, subject to shareholder approval in November, encapsulates highly ambitious and complex objectives. While some critics highlight the dilution of Musk’s earlier promises, Tesla’s history includes meeting seemingly improbable targets under his leadership. However, the recalibrated goals suggest a more cautious approach reflecting recent operational realities and market conditions.