Anything can happen…

On October 22, Tesla’s board of directors designed a new compensation plan for Elon Musk, hoping that he will stay in his position as CEO for at least another decade. Theoretically, the maximum value of this plan could be up to one trillion dollars, a significant increase that has attracted widespread attention.

But as soon as the news was announced, controversy broke out. Doubts and concerns from the outside world continued to grow, leaving the proposal in doubt before the official vote.

Musk himself took a very tough stance and said bluntly: If my salary is not enough, I will resign as CEO of Tesla!

Musk’s salary journey at Tesla has been full of ups and downs. The last time, in 2018, the board set him extremely challenging goals, and he not only met them but also exceeded them. However, despite that, he has not received a single penny, mainly due to legal disputes.

Perhaps because of previous experience, Musk is completely unwilling to endure this time. He made it clear that if he does not receive a high salary that he believes is worthy of his contributions, he will leave Tesla, at least he will not sit in the CEO position.

So, how much is the “high salary” he mentioned?

In fact, it’s a new set of “compensation OKRs” Tesla has designed specifically for him. The core goal is one: to keep Musk on board for the next ten years at astronomical profits.

However, making a lot of money is harder than climbing the ladder:

1. Market capitalization: Need to reach a maximum of $8.5 trillion, nearly eight times Tesla’s current market value.

2. Profits: Need to reach a maximum of $400 billion, nearly 24 times higher than 2024 profits.

3. Products: Need to deliver a total of 20 million Tesla vehicles, complete 10 million FSD service subscriptions, deliver 1 million Tesla robots, and put 1 million self-driving taxis (Robotaxi) into service.

If all goals are met, Musk’s stake in Tesla will increase from 13% to about 25%. Based on the highest market value, this additional 12% stake is worth exactly $1 trillion (about 7.13 trillion yuan).

This is not only the largest compensation package in history, but also far exceeds Tesla’s total profit since its inception. If achieved, Musk will become the first trillionaire in history. Even if he only partially achieves the target, Reuters estimates that he could easily earn between $20 billion and $40 billion.

Such a high salary has naturally attracted a lot of concern and opposition from outside. The opposition mainly comes from some institutions and analysts, who believe that this salary is too high, “sky-high”, and will seriously dilute the shares of existing shareholders.

A former Tesla employee also questioned the X platform, arguing that the pay package was too high and that its returns would struggle to keep up with inflation and would lag significantly behind the S&P 500. He even suggested that other capable CEOs could drive Tesla to similar growth at lower costs.

Musk responded with a blunt response, retorting, “Tesla’s market cap is higher than the combined value of all other car companies. Which CEO would you want as CEO? Not me.” He meant that my accomplishments are unique and I deserve this price.

Of course, there are many supporters. Tesla’s official account has posted a message urging shareholders to vote in favor, and the company’s biggest fan, Cathie Wood, has also predicted that the plan will pass with an overwhelming majority, just like in 2018.

However, the final outcome of the whole matter will not be revealed until Tesla’s shareholder meeting on November 6. Musk has declared the meeting “very special” – in addition to determining his lofty salary, it is rumored that the next generation of product roadmaps will also be announced, such as the new Roadster supercar that has been delayed for years.

So the pressure is now on Tesla shareholders: accept this “trillion dollar” merger plan and keep this stubborn but talented CEO; or reject him and face the situation where Musk might actually resign?

What do you think? Let us know in the comments~