Elon Musk is on track to potentially become the world’s first trillionaire, but shareholders of Tesla have the authority to hinder this outcome. As the current wealthiest individual globally, with a net worth exceeding $500 billion, Musk’s wealth is primarily derived from his ownership stakes in various ventures, including Tesla, SpaceX, xAI, and X (formerly Twitter).
Forecasts suggest Musk could reach trillionaire status by 2027 if his wealth continues its rapid growth, averaging 110% annually. Although Musk initially faced backlash that impacted Tesla sales after aligning with Donald Trump, the company’s stock has since surged, leading Musk to seek increased compensation from Tesla.
At the upcoming annual meeting in Austin, Texas, Tesla shareholders will vote on a proposal to potentially elevate Musk to the first trillionaire in history. The decision has sparked intense debates, with critics, including certain pension funds, raising concerns about Musk’s behavior and the proposed riches. Conversely, supporters argue that Musk’s visionary leadership is crucial for Tesla’s future success, particularly in pioneering self-driving cars and humanoid robots.
Musk’s eligibility for the proposed pay package hinges on meeting specific operational and financial targets, such as delivering 20 million Teslas within a decade and substantially boosting the company’s market value and operating profits. Even if Musk falls short of some major goals, he could still receive significant compensation. The proposed package includes additional Tesla shares worth billions if he achieves certain milestones.
While critics, including major pension funds, question the excessive nature of the proposed pay package, supporters emphasize Musk’s irreplaceable role in Tesla’s growth and innovation. The debate has even drawn attention from the Vatican, denouncing the widening wealth gap and the trillion-dollar offer as emblematic of such disparities.
Despite Musk’s track record of ambitious promises and occasional setbacks, his supporters highlight his ability to overcome challenges and drive Tesla’s success. Musk’s ambition to secure a higher stake in Tesla is seen as a strategic move to maintain control over the company, particularly in the context of upcoming technological advancements like robotic workers.
Ultimately, the fate of Musk’s potential trillionaire status rests on the outcome of the shareholder vote at the annual meeting, where stakeholders will determine the future trajectory of Tesla and Musk’s role within the company.