Tesla CEO Elon Musk may be on the road to becoming the world’s first trillionaire after the company board unveiled a new pay package proposing $1 trillion in compensation to him. The new pay package has proposed that 12 per cent of the Tesla stocks will go to Musk if all targets of the company are met.
The plan also sets a series of benchmarks that Musk must reach to move forward, including expanding the company’s market value to at least $8.5 trillion.
According to a report by CNN, if the move is approved, the package would grant Musk 423.7 million additional Tesla shares, worth approximately USD 143.5 billion at the current stock price. However, this package would be granted if Tesla’s Market value reaches $8.5 trillion.
The potential value of the offer has been estimated at $1.03 trillion, with a significant boost needed in Tesla’s current market value to reach the target.
“This is all about Musk being scared about being kicked out of Tesla because he only owns 13%,” Ross Gerber, CEO of Gerber Kawasaki, told CNN. Ross is an early Tesla investor who has since sold most of his stake.
As per the report, Musk currently owns 410 million Tesla shares worth around USD 139 billion, along with stakes in SpaceX, xAI, and X (formerly Twitter), bringing his net worth to a total of USD 378 billion.
This pay package mirrors Musk’s 2018 pay package that led to a boost in his wealth and was twice approved by shareholders but was ultimately struck down by a Delaware judge, ruling that Musk had significant sway over the board.
The incentives provided to Musk in the latest offer are part of an effort to keep Musk’s focus on Tesla while the company is looking to pursue growth in new markets. With Musk’s involvement in several companies, there have been concerns that he may shift his focus from Tesla.
The board also approved a $29 billion interim package for him earlier this year to retain Musk throughout 2030. Despite the recent volatility in Tesla’s stock, Elon Musk and his supporters remain optimistic about the company’s long-term growth, fueled by his ambitious vision for self-driving robotaxis and humanoid robots.
