Tesla's board approved a $158 billion pay package for Elon Musk, the largest executive compensation deal on record. The award takes the form of stock options rather than cash, meaning Musk cannot access the money unless Tesla hits a series of performance targets.
Those targets include reaching a $650 billion market capitalization, a $2.5 trillion valuation, and specific revenue and profitability milestones. The package also requires Musk to maintain voting control of Tesla through a specific ownership threshold.
As of now, Musk has not yet achieved the conditions needed to unlock any portion of the pay. Tesla's current market cap sits below the initial threshold, and the company faces slowing growth in its core markets alongside increased competition in electric vehicles.
The compensation structure effectively ties Musk's financial reward to Tesla's future performance over several years. If the company fails to meet these benchmarks, the package remains worthless to him. The board framed the deal as necessary to retain Musk's focus on Tesla amid his other ventures, including X (formerly Twitter) and SpaceX.