Elon Musk Could Become the World’s First Trillionaire with Tesla’s New Pay Package.
Tesla CEO Elon Musk may be on track to become the world’s first trillionaire if shareholders approve a massive new compensation plan designed to keep him focused on the electric vehicle maker.
The proposal would grant Musk up to 423.7 million additional Tesla shares, worth roughly $143.5 billion at current prices. However, these shares would vest only if Tesla’s market capitalization reaches an unprecedented $8.5 trillion—almost eight times today’s value of $1.1 trillion and nearly double that of Nvidia, currently the world’s most valuable company. If the targets are met, the additional shares alone could push Musk’s wealth close to $1 trillion.
The proxy statement also mentions a shareholder proposal for Tesla to invest in Musk’s AI company, xAI, which recently acquired X (formerly Twitter). While details are sparse, such an investment could further consolidate Musk’s business empire.
Currently, Musk owns 410 million Tesla shares, valued at around $139 billion, along with stakes in SpaceX, xAI, and other ventures. Bloomberg estimates his total net worth at $378 billion. He also holds options for another 304 million Tesla shares, though previous pay packages granting similar options were twice struck down by Delaware courts.
Tesla’s stock has seen dramatic swings, nearly doubling after the 2024 U.S. elections due to investor optimism over Musk’s political connections, before retreating amid protests, falling sales, and a clash with former President Trump. Shares are still down roughly 26% from their December peak, though early trading Friday showed a 5% increase.
Analysts say the plan aims to keep Musk focused on Tesla despite his wide-ranging business and political interests. It includes ambitious operational goals, such as achieving $50 billion in adjusted operating income and deploying one million humanoid robots or robotaxis.
Critics argue the package could incentivize Musk to pursue bold promises more to lift Tesla’s stock than to address existing challenges. Tesla faces growing competition from Chinese EV makers like BYD, which may soon overtake Tesla in global EV sales, and the loss of regulatory credit revenue that previously contributed billions to Tesla’s profits.
Despite skepticism, Musk and supporters remain confident that Tesla’s innovations in self-driving vehicles, AI, and robotics will drive future growth, potentially rewarding shareholders—and making history for Musk.
