Elon Musk is on track to potentially become the world’s first trillionaire following approval from Tesla shareholders. The company has greenlit a new compensation plan for Musk, allowing him to unlock $1 trillion in Tesla stock if specific benchmarks are met within the next decade.
For Musk to achieve trillionaire status, Tesla’s overall stock value must increase from its current $1.5 trillion to over $8.5 trillion. This compensation package also entails Musk forgoing a salary. By 2035, Musk must deliver 20 million electric vehicles, secure 10 million active full self-driving subscriptions, introduce one million humanoid robots, and launch a commercial service of one million Tesla taxis to earn an extra 12% of the company’s stocks.
Even if Musk falls short of the major targets, he stands to gain substantially. For instance, he could receive $50 billion in additional Tesla shares if he boosts the company’s market value by 80%, doubles vehicle sales, triples operating earnings, or achieves any other two of a dozen operational objectives.
Currently, Musk holds the title of the wealthiest individual globally, with a net worth of $493 billion according to Forbes. He emphasizes that his pursuit is not primarily about wealth but about increasing his Tesla stake to nearly 30% to maintain control over the company, particularly in anticipation of Tesla’s forthcoming “robot army.”
While many investors, such as Baron Capital Management, support the compensation package, critics like the US public pension fund Calpers and Norway’s sovereign wealth fund have raised concerns about its extravagance. The Norway fund, the world’s largest, questions the independence of the board responsible for designing the package, which includes Musk’s brother. This skepticism echoes a previous Delaware court ruling that criticized the flawed process of approving Musk’s prior pay package due to his close relationships with board members.