Bloomberg Businessweek Tesla Offers Elon Musk an Unprecedented $1 Trillion Pay Package
Sep 5, 2025
In this discussion, Ed Ludlow dives into Tesla's jaw-dropping $1 trillion pay package for Elon Musk, which sets ambitious targets for the future of the company. Ira Jersey analyzes the current movements in the Treasury market amid Fed decisions, while Misty Heggeness highlights challenges women face in the labor force post-pandemic. Louis Navellier sheds light on market trends and investor sentiment. Together, they unpack how these diverse factors are influencing the tech and economic landscape.
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Tranche-Based Trillion-Dollar Pay Plan
- Tesla's proposed pay plan could total roughly $1 trillion if a long list of operational and financial milestones are met over 10 years.
- The package ties compensation to hard targets and includes safeguards like succession involvement and staggered voting rights.
Negotiations Included Musk's Quit Threat
- The board negotiated the package over many meetings and delayed the shareholder meeting while hiring outside advisers.
- Musk reportedly threatened to leave Tesla for ventures like XAI and SpaceX unless given larger voting power.
AI Milestones Drive Valuation Target
- The plan links an $8.5 trillion market-cap target to AI and robotics operational goals like 1 million robo-taxis and 1 million humanoid robots.
- The board preserved traditional vehicle targets, requiring 20 million vehicle sales to keep Musk tied to core auto business.
