Tesla just threw down the biggest financial challenge ever seen in corporate history. In a bold move, the board proposed a pay package for Elon Musk that could make him the world's first trillionaire. However, it is not a guaranteed payday. It all depends on Tesla hitting some seriously massive goals.

Right now, the Tesla boss is already the richest person alive. But if this new Tesla compensation plan passes and he checks all the boxes, he could more than double his fortune. The prize? Up to 423.7 million shares of Tesla stock, worth around $143.5 billion at today’s prices. But that is only if he takes Tesla to a whole new level.

Craig / Pexels / For Musk to get the full payout, Tesla needs to skyrocket in value. The company’s current market cap sits around $1.1 trillion.

The plan is to push that number to $8.5 trillion. That is more than any company has ever achieved. For perspective, that is nearly eight times what Tesla is worth now and far beyond even Apple or Nvidia.

The package breaks down into 12 tranches. Each step gives Musk more stock if Tesla hits a new milestone. The first? A $2 trillion market cap. It only gets harder from there.

Musk needs to sell 20 million cars, get 10 million people to sign up for Tesla’s Full Self-Driving software, and put 1 million robotaxis on the road. Oh, and he also has to deliver a million humanoid robots.

Why the Board is All in?

Tesla’s board says Musk is the secret sauce. They believe he is the only one who can lead Tesla into the next phase, where AI, autonomous driving, and robotics define the business. It is not just about cars anymore. They want to keep him focused, especially since he is juggling a lot, including SpaceX, xAI, and his media empire over at X.

Without this deal, Musk has hinted he might step back or shift focus to his other ventures. This package is the board’s way of saying, "Stay with us, and here’s your reward."

The Tesla Boss Wants More Control

Elon Musk isn’t just asking for money. He also wants power. Right now, he owns around 13% of Tesla. With this deal, his stake could climb past 25%, giving him much more say in how the company runs. Musk has been open about this. He says he needs that kind of control to lead Tesla’s AI efforts without getting blocked by the board or outside investors.

This proposal would give him that control, assuming shareholders agree.

GTN / Musk’s 2018 pay package, worth $56 billion, was struck down by a Delaware court for being excessive and poorly approved. Tesla is still fighting that ruling.

Critics say this new plan feels like déjà vu, just on steroids.

The company will need to tread carefully. Another legal stumble could kill the deal before it even gets started.

Some investors are calling foul. Ross Gerber, a vocal Tesla shareholder, says the whole thing reeks of greed. He believes Musk is scared of being pushed out and wants to secure his seat at the table no matter what.

Others say the goals are just too far-fetched. Tesla’s sales have slipped recently, and competition is heating up. Chinese EV makers like BYD are gaining ground fast, and Tesla’s once-hyped models are starting to feel stale.

Analysts are also nervous. Dan Coatsworth, among others, called the package "excessive" and warned it could open the door for more outrageous executive pay deals elsewhere. If Musk pulls it off, it is game-changing. If he doesn’t, it is a $143 billion swing and miss.