Elon Musk is on track to potentially become the world’s first trillionaire following a recent vote by Tesla shareholders. The company has endorsed a new compensation plan for its CEO, which could result in Musk unlocking $1 trillion worth of Tesla stock if specific benchmarks are achieved over the next ten years.
In order for Musk to reach trillionaire status, Tesla’s total stock value must surge from its current level of around $1.5 trillion to over $8.5 trillion. As part of the package, Musk will forgo a salary and will need to meet certain ambitious targets by 2035, including delivering 20 million electric vehicles, securing 10 million active full self-driving subscriptions, introducing one million humanoid robots, and launching a commercial service of one million Tesla taxis.
Even if Musk falls short of these ambitious goals, the package offers substantial rewards. For instance, he could receive $50 billion in additional Tesla shares by boosting the company’s market value by 80%, doubling vehicle sales, tripling operating earnings, or achieving two of twelve operational targets.
With a current net worth of $493 billion, Musk is already the wealthiest individual globally, according to Forbes magazine. Despite his financial success, Musk has emphasized that his focus is not solely on monetary gain but on increasing his stake in Tesla to nearly 30% to maintain control over the company, particularly in light of Tesla’s envisioned “robot army.”
While many investors have shown support for the compensation plan, critics, including notable entities like the US public pension fund Calpers and Norway’s sovereign wealth fund, have raised concerns about the package’s perceived excessiveness and the independence of the board overseeing it. This scrutiny is reminiscent of previous criticisms leveled at a Delaware court decision two years ago, which questioned the approval process for a prior Musk pay package due to potential conflicts of interest among board members.
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