Musk's Path to Becoming the First Trillionaire
Elon Musk, the CEO of Tesla, may soon become the world's first trillionaire, thanks to a groundbreaking new pay package proposed by Tesla's board. This ambitious pay package amounts to a staggering $1 trillion, where Musk stands to gain 12% of Tesla's stocks if the company meets specific performance targets. One of the key benchmarks includes expanding Tesla’s market value to a whopping $8.5 trillion.
If approved, Musk could receive 423.7 million additional shares, valued at approximately USD 143.5 billion at the current stock price, but this will only be possible if Tesla achieves the targeted market valuation. Experts estimate that the total potential value of this offer could reach up to $1.03 trillion. However, this requires a significant increase in Tesla’s current market value, which raises questions about the company's trajectory and growth.
According to reports, Musk currently owns around 410 million Tesla shares, worth about $139 billion, along with stakes in other companies like SpaceX and xAI. This brings his total net worth to an impressive USD 378 billion. Ross Gerber, a notable Tesla investor, commented that Musk's fear of being ousted from Tesla due to his relatively small ownership of 13% might be driving the necessity for this new package.
This proposed pay package mirrors a previous arrangement Musk had in 2018, which also significantly boosted his wealth. Although that package received approval from shareholders, it was later invalidated by a Delaware judge, citing Musk's influence over the board. The latest pay package aims to keep Musk focused on Tesla, especially as the company explores growth opportunities in new markets.
Earlier this year, the board also approved a $29 billion interim package for Musk to retain his leadership until 2030. Despite fluctuations in Tesla's stock, Musk and his supporters remain optimistic about the company's long-term prospects. They are particularly excited about Musk’s ambitious vision for innovations like self-driving robotaxis and humanoid robots, which could redefine the future of transportation and technology.
