Elon Musk lands a historic pay deal that could make him the first trillionaire if Tesla hits tech milestones
Elon Musk stands poised to become the world’s first trillionaire, following Tesla shareholders’ approval of a record-breaking compensation plan that ties his payout to a series of ambitious milestones in artificial intelligence, robotics, and autonomous vehicles, according to Reuters.
The package, which received over 75 percent support at Tesla’s annual meeting, is the largest corporate pay deal in history.
It could grant Musk up to US$1tn in stock over the next decade, though the net value would be US$878bn after required payments, as reported by Reuters.
The plan’s structure ensures Musk only benefits if Tesla’s market value and operational targets are met, aligning his incentives with those of shareholders.
For every milestone—such as delivering 20 million vehicles, deploying 1 million robotaxis, and selling 1 million humanoid robots—Musk receives 1 percent of Tesla’s stock, up to a maximum of 12 percent if all goals are achieved, as per CNN.
Tesla’s future valuation, and Musk’s compensation, hinge on the company’s ability to transform from an electric vehicle manufacturer into a leader in AI and robotics.
Musk outlined plans to begin production of the Cybercab, a steering-less robotaxi, and to unveil a next-generation Roadster, while also highlighting the need for a “gigantic chip fab” to support AI ambitions, according to Reuters.
The board warned that Musk might leave Tesla if the package was not approved, a risk that many investors were unwilling to take.
While some major shareholders, including Norway’s sovereign wealth fund and proxy firms Glass Lewis and Institutional Shareholder Services, opposed the plan due to concerns about its size and concentration of power, the majority endorsed it as a way to retain Musk and drive long-term value, as reported by The New York Times.
Shareholders also approved Tesla’s investment in Musk’s AI start-up, xAI, though many abstained, reflecting some hesitancy about the arrangement and calls for stronger board oversight, according to Reuters.
The package’s value will fluctuate with Tesla’s stock price, and Musk has emphasized that his primary interest is increased voting control rather than personal wealth, as per CNN.
Ultimately, the board and many investors argue that the plan is designed to “supercharge Tesla’s next phase of exceptional growth, innovation and value creation,” as stated by Tesla’s board chair and reported by The New York Times.
The approval is expected to keep Musk focused on Tesla’s future, with the potential for both unprecedented executive compensation and transformative advances in technology.
