Bloomberg Tech

Musk Could Earn $1 Trillion With New Tesla Pay Package

12 snips
Sep 5, 2025
Kunjan Sabani, a Bloomberg Intelligence analyst, dives into Elon Musk's eye-popping $1 trillion pay package tied to ambitious Tesla goals. They discuss the implications for Tesla and the broader auto industry. Furthermore, there's a fascinating look at Tesla shareholders' potential vote on investing in Musk's AI startup, xAI. Meanwhile, Qualcomm CEO Cristiano Amon highlights innovations in automated driving set to debut in BMW cars, showcasing the fast-paced evolution of automotive technology.
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INSIGHT

Trillion-Dollar Bet On Robotics And Market Cap

  • Tesla's $1 trillion proposal ties pay to extreme market-cap and operational milestones across AI, robots, FSD, and vehicle sales.
  • The board hopes these high bars will refocus Elon Musk on long-term AI and robotics goals for shareholder upside.
INSIGHT

12 Tranches With Aggressive Unlock Conditions

  • The package is split into 12 tranches unlocked by market-cap hurdles starting at $2 trillion and operational milestones like robotaxi deployment.
  • Bloomberg's Dana Hull emphasizes these targets are aggressive and Tesla is far from meeting them today.
ADVICE

Design Pay To Force Long-Term Focus

  • Boards should tie CEO incentives to measurable, high-threshold outcomes and succession involvement.
  • This aligns long-term founder focus while protecting shareholder interests during transition planning.
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