A version of this article appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.

Tesla said it needed to incentivize CEO Elon Musk with a record-breaking pay package in order to compete with his private companies, according to a proxy the company filed last week.

The filing outlines a share award that could be worth $1 trillion if it all pays out. Tesla also said Musk's other companies — mainly SpaceX and xAI Holdings — now account for most of his wealth and therefore will command most of his attention unless Tesla pays him more.

"A majority of Mr. Musk's wealth is now derived from other business ventures outside of Tesla, and he has more at

See Full Page