Tesla's board of directors has crafted a new, potentially record-breaking compensation package for CEO Elon Musk. Under this plan, if Musk successfully attains a series of exceptionally ambitious performance targets, he stands to receive a stock award valued at a staggering US$1 trillion.

Since 2017, Musk has foregone significant compensation, and his prior compensation package was left unrewarded following a decision by the Delaware Court of Chancery. In light of these circumstances, Tesla is now taking proactive steps to ensure that Musk receives appropriate compensation. The board firmly believes that Musk's continued leadership is vital for the company's future success.

At the upcoming shareholder meeting, critical discussions surrounding this compensation package will take place. Notably, Robyn Denholm and Kathleen Wilson-Thompson, both prominent board members, are urging shareholders to endorse the 2025 CEO Performance Award Package.

This new package sets even loftier goals for Musk. It encompasses achieving core operational milestones, launching or significantly expanding new product lines, and driving substantial growth in the company's market capitalization. Moreover, the package incorporates an innovative structural design aimed at aligning Musk's interests with those of the shareholders.

Should Musk successfully accomplish all the stipulated performance milestones, his leadership would undoubtedly propel Tesla to unprecedented heights, potentially making it the most valuable company in history. The board of directors is unequivocal in its belief that Musk is the ideal candidate to shoulder this immense responsibility and is hopeful that he will continue to lead Tesla into the future.

If shareholders give their approval, this compensation package is designed to secure Musk's long-term commitment to Tesla, ensuring that the company remains under the guidance of its visionary leader.