Elon Musk’s $1 Trillion Tesla Pay Award Can Earn More Money for You. Here’s How.

Core Points - Tesla shareholders approved Elon Musk's 2025 pay package, which includes 400 million incentive-laden shares contingent on meeting performance targets over the next decade [3][6][10] - The package aims to restore Musk's ownership in Tesla to 25% and could potentially make him the first trillion-dollar CEO if all milestones are achieved [6][11] - The approval margin was more than three to one, indicating strong shareholder support for the compensation plan [4] Financial Metrics - Musk's performance targets include generating $400 million in EBITDA over a 12-month period, with Tesla expected to generate approximately $13 billion in EBITDA for 2025 [3][10] - Prior to this package, Musk had already earned 380 million shares valued at over $150 billion, translating to an annual compensation of around $12 billion [7][10] - If Musk meets all targets, his earnings could average approximately $275 million per day, significantly higher than the average annual compensation of $20 million for S&P 500 CEOs [10] Historical Context - Musk's previous pay package from 2018, which included 300 million stock options, was voided by a Delaware judge due to inadequate shareholder disclosures, but shareholders later voted to re-award it [5][6] - The 2012 award of 80 million incentive-laden shares is now valued at roughly $34 billion, showcasing the substantial growth in Tesla's stock value over time [5][6]