Elon Musk, the world’s richest man, could get even richer—potentially becoming a trillionaire—after Tesla announced a 10-year compensation package for the electric vehicle company’s “unique” CEO. The “super ambitious” incentive plan could make him the world’s first trillionaire if Musk accepts the deal and achieves aggressive growth targets.
How Does the Reward Work?
The reward is entirely in Tesla stock, not cash. Musk could receive 423.7 million new Tesla shares, currently worth about $143.5 billion. To claim the full package, Tesla’s stock would need to grow from $1.1 trillion today to $8.5 trillion in 10 years—over eight times its current value and nearly double the value of Nvidia, today’s most valuable company. Among the goals, Tesla’s annual vehicle sales would need to reach 20 million, and Musk would also need to expand Tesla’s robot and robotaxi businesses, selling a million robots and a million driverless cabs.
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What Are the Conditions to Receive the Stock?
Musk must remain at Tesla for at least seven-and-a-half years to access any shares, and 10 years to earn the full amount. Currently, Musk’s net worth is $437.8 billion, according to Forbes’ real-time tracker, and this new package could push it over $1 trillion.
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Elon Musk’s net worth
With a net worth of $421.2 billion, Elon Musk topped the Forbes list. Musk, who founded SpaceX in 2002 and serves as its CEO, also heads Tesla and holds stakes in social media platform X, AI company xAI, and tunnelling firm Boring Co. Before launching SpaceX in 2002 and joining Tesla in 2004, Musk co-founded PayPal, which was later sold to eBay.
Why is Elon Musk’s retention considered crucial?
Robyn Denholm, Tesla’s board chair, and director Kathleen Wilson-Thompson highlighted Musk’s importance in a letter to shareholders, stating, “Retaining and incentivising Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history,” according to The New York Times.
The filing also included a shareholder proposal suggesting that Tesla take a stake in Musk’s private AI firm, xAI, which recently acquired the social media platform X (formerly Twitter). CNN reported that the proposal does not specify the size of the stake or its cost, and Tesla has not yet taken a position. The move could allow Musk to further consolidate his business empire.
However, the pay plan is expected to face criticism, with some shareholders claiming that Musk’s recent performance has been poor and that his behaviour has at times harmed the company.
