Elon Musk’s newly approved Tesla compensation package, touted as the largest ever, could still pay him tens of billions of dollars even if he fails to hit most of the ambitious performance targets, Reuters reports. The package is valued at up to $878 billion over ten years, contingent on massive achievements in robotics, autonomous driving, and company value.

Analysis of the deal shows Musk could receive over $50 billion by accomplishing a few of the easier mandates alone—such as moderate vehicle sales and incremental boost in market capitalization. More modest goals tied to selling 1.2 million cars annually and modest stock growth could yield $8.2 billion in stock awards.

Critics argue Tesla’s board set vague definitions around targets like “advanced driving systems” and robotics, allowing broad interpretation. The hardest benchmarks—such as hitting profit goals up to $400 billion—are seen as much less likely to be met. Yet the structure of the deal means Musk could still be rewarded heavily even without delivering full transformational results.

Tesla’s board asserts that Musk must serve as an executive for at least 7.5 years before collecting any payout. Voting rights tied to the share awards would vest earlier, but Musk can’t claim stock awards unless minimum tenure and some performance conditions are satisfied.

Some governance experts warn the package gives Musk disproportionate influence, placing extreme faith in a single leader. Others believe stakeholders will ultimately judge whether results justify the payout. The arrangement underscores the high stakes Tesla sees in pushing forward its ambitions in AI, robotics, and autonomous mobility.

Source: Reuters.