Tesla has announced a bold compensation package that could make Elon Musk the world’s first trillionaire, provided he manages to achieve highly ambitious performance goals.
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The plan is structured to grant Tesla shares as payment, as long as he significantly increases the company’s market value over the next ten years and remains CEO during this period.
According to The Richest, the package seeks to consolidate the company’s position in the global market. In a letter sent to shareholders, board members Robyn Denholm and Kathleen Wilson-Thompson stated that “retaining and motivating Elon is fundamental for Tesla to achieve these goals and become the most valuable company in history.” The proposal still requires shareholder approval and will be voted on at the general meeting on November 6.
The targets, however, are considered extremely challenging. Tesla would need to double in value to surpass companies like Nvidia, currently the world’s most valuable chipmaker. The recent drop in Tesla stock has already reduced Musk’s net worth to around $180 billion. Even so, the new compensation structure resembles the 2018 plan, which also seemed unattainable — but Musk managed to meet the goals.
In 2024, a Delaware judge invalidated the 2018 plan, which could have granted Musk more than $50 billion, citing excessive terms and a lack of transparency for shareholders. As The Richest recalls, Tesla appealed to the Delaware Supreme Court and, in parallel, introduced measures to replace that package, ensuring Musk remains at the helm.
According to Forbes, Musk’s fortune is already approximately $437 billion, largely tied to Tesla, SpaceX, and the artificial intelligence startup xAI. To earn the title of trillionaire, Tesla would need to grow from its current $1.1 trillion market capitalization to around $8.5 trillion — a figure comparable to the combined value of giants like Meta, Microsoft, and Alphabet.
The plan also sets ambitious financial and innovation goals: raising operating profit from $17 billion to $400 billion, selling 20 million vehicles by 2035, and accelerating the development of autonomous technologies, including robotaxis and Optimus, the company’s humanoid robot. Projections cited by Tesla estimate that humanoid robots could generate $4.7 trillion in global sales by 2050.
If Musk meets all the objectives, he could receive up to 423.7 million additional Tesla shares, currently valued at $143.5 billion, raising his stake in the company to nearly 29% and strengthening his decision-making power.
Despite the board’s enthusiasm for keeping Musk, critics and some shareholders question his strong political exposure and involvement in other companies, which could divert his attention from Tesla. Still, as The Richest highlights, the pressure to approve the package is enormous, as Musk has even suggested he might leave Tesla if he doesn’t receive a larger stake.
Source: The Richest. This content was created with the help of AI and reviewed by the editorial team.
