Tesla proposes new pay plan for Musk that would expand his voting power

Tesla is asking investors to approve yet another outsized pay plan for CEO Elon Musk, according to a financial filing out Friday.

The proposed compensation plan for Musk, already the world’s wealthiest individual, consists of 12 tranches of shares to be granted if Tesla hits certain milestones over the next decade. It would also give Musk increased voting power over the EV maker and aspiring robotics titan, which he has publicly demanded since early 2024.

To obtain the first award in the plan, Musk and Tesla would need to almost double their current market cap to reach $2 trillion, while also hitting a production and deliveries milestone of a cumulative 20 million vehicles.

Among the additional targets for Musk to reach in the 2025 CEO Performance Award: Adjusted EBITDA targets, rolling out product offerings “including 1 million Robotaxis in commercial operation and delivery of 1 million AI Bots” and ultimately “he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.”

Musk has remained politically embroiled, while also running a collection of companies, including aerospace and defense contractor SpaceX, drilling venture The Boring Company, health tech company Neuralink and the artificial intelligence venture, xAI, which has merged with his social network, X.

This is breaking news. Please refresh for updates.