Elon Musk is on track to potentially become the first trillionaire globally following the recent approval by Tesla shareholders. The company has given the green light to a new compensation plan for its CEO, which could unlock $1 trillion in Tesla stock for Musk if specific milestones are met within the next ten years.
For Musk to achieve trillionaire status, Tesla’s overall stock value must surge from its current $1.5 trillion to over $8.5 trillion. As part of the package, Musk will not receive a salary. Moreover, to earn an additional 12% of the company’s stocks by 2035, Musk must deliver 20 million electric vehicles, have 10 million active full self-driving subscriptions, introduce one million humanoid robots, and launch a commercial service of one million Tesla taxis.
Even if Musk falls short of the major goals, the package could still yield significant gains. For instance, he would receive $50 billion in additional Tesla shares if he boosts the company’s market value by 80%, increases vehicle sales twofold, and triples operating earnings, or meets any other two out of a dozen operational targets.
Currently the wealthiest individual globally with a net worth of $493 billion, according to Forbes, Musk emphasizes that his focus is not solely on money but on acquiring a larger stake in Tesla – which is set to double to nearly 30%. This move is driven by his desire to maintain control over the company, especially in anticipation of Tesla’s future “robot army,” a nod to the Optimus humanoid workers that Musk believes only he should manage.
While numerous investors, such as Baron Capital Management, have voiced support for the compensation package, critics like the significant US public pension fund Calpers and Norway’s sovereign wealth fund have raised concerns about its exorbitance. The Norway fund particularly highlights worries about the lack of independence in the board that devised the plan, which includes Musk’s brother. This sentiment echoes a previous Delaware court ruling from nearly two years ago, which criticized the approval process for an earlier Musk pay package as “deeply flawed,” citing his extensive connections to the directors involved.
