Is Musk’s $1tr pay deal real and how could it affect Tesla?

Elon Musk’s $1 trillion pay deal has been in the spotlight, largely because of its unprecedented scale and Tesla’s ambitious targets. 

As companies prepare for year-end performance reviews, Tesla finds itself under scrutiny after shareholders approved the historic package on November 5, granting Musk the potential to secure nearly 424 million shares if the electric vehicle (EV) maker hits a series of milestones.

For those uninitiated, the $1 trillion figure reflects the theoretical value Musk could reach if Tesla climbs to an $8.5 trillion market valuation, a leap that would require the company’s share price to soar to around $2,400. 

Currently, Tesla trades near $420, putting the target at nearly six times its current level.

Notably, the plan has 12 milestones, including delivering 20 million vehicles, deploying one million robotaxis, selling one million humanoid robots, and dramatically boosting earnings. 

These targets mark some of the most ambitious goals Tesla has ever set, far eclipsing its current production and financial performance.

Whether the $1 trillion dream becomes reality remains uncertain. However, one thing is clear: Musk’s new deal further ties Tesla’s fate to bold, high-risk growth.