Tesla Offers Elon Musk $1 Trillion Incentive to Meet Ambitious Goals

Tesla boss Elon Musk will receive a pay package worth over $1 trillion (£740bn) if he hits a list of ambitious targets over the next decade, the board of the electric car firm has proposed.

To get the package, Musk, who is already the world's richest person, would need to boost Tesla's value eightfold, sell a million artificial intelligence robots, sell another 12 million Tesla cars, and hit several other moonshot goals.

Musk would not earn a salary or bonus but would instead be gradually awarded shares which would be worth $1 trillion if he achieves all the targets.

The company's board urged investors to vote in favour of the package, indicating the need to retain and motivate Musk is essential for future growth. Tesla chair Robyn Denholm emphasized that new ideas and better technology could unlock growth that may seem impossible today.

Under the latest plan, Musk would be awarded shares in twelve tranches, tied to market milestones. The first milestone is for Tesla's market value to double to $2 trillion, while the final one targets a valuation of $8.5 trillion, exceeding that of leading competitors.

Despite the ambitious proposal, the context of declining sales at Tesla raises questions about its feasibility. Analysts have expressed skepticism about whether Musk deserves such a monumental pay package, especially given the company's recent struggles.

This latest proposal follows Musk's previous receipt of $29 billion in shares after a court ruling against an earlier $50 billion pay package that was deemed unfair to shareholders. Critics worry about Musk's focus and effectiveness as Tesla faces increased competition and market challenges.

'Beggars belief'

Criticism is mounting as observers question the justification for such a staggering pay proposal, with investment analysts pointing to Musk's leadership during a turbulent period for Tesla as unconvincing.