The Tesla Board of Directors announced yesterday that it had established a new pay package for CEO Elon Musk, as it believes it is “critical” to secure his long-term commitment to the position.
However, the Board made it clear about Musk’s political involvement in its proxy filing, which announced the new pay package, and it seems the company is addressing it directly.
Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation
The proxy announced the massive pay package, which could give Musk $1 trillion if he achieves various goals that would help Tesla grow as an automaker, energy provider, and in the Robotics and AI sectors.
There are also some details about the Board’s decision, which we went over yesterday, as it felt that Musk was the right person to continue to lead Tesla for the foreseeable future.
It appears that there were four primary reasons behind the decision to retain Musk with this substantial pay package.
Tesla sought to secure Musk’s commitment to the company by offering him a path to increased ownership; if he were to achieve all tranches, he would hold approximately 27 percent ownership.
Another was to let Musk develop the newest Master Plan, which was released last week. Additionally, there needs to be a “meaningful framework for long-term succession planning led by the Board with Musk’s active participation.”
But there was one driving factor that was considered critical to Tesla: “Receive assurances that Musk’s involvement with the political sphere would wind down in a timely manner.”
This is an interesting tidbit in Tesla’s proxy filing. The board says: “Ultimately, the Committee believed it to be critical to Tesla to secure Musk’s commitment to Tesla, receive assurances that Musk’s involvement with the political sphere would wind down in a timely manner.”… pic.twitter.com/uGdVESprc8
— Sawyer Merritt (@SawyerMerritt) September 5, 2025
It is far from a secret that Musk’s involvement with President Donald Trump during his election campaign and after he was voted in rubbed many people the wrong way.
Musk was part of President Trump’s White House, serving as the Head of the Department of Government Efficiency (DOGE) and also acting as a Special Advisor.
President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)
Musk’s political involvement impacted sales, but by how much is unknown.
It appears the Board is truly ready to move on from politics and focus on what matters: expanding AI, Robotics, and sustainable energy. For what it’s worth, Musk has backed away from politics significantly compared to how it was during election season.
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