Elon Musk's Trillionaire Quest: Tesla's Bold New Pay Package

Elon Musk, the CEO of Tesla, is on the brink of becoming the world's first trillionaire, following the company's board announcement of a new compensation package directly linked to significant growth targets, as reported by CNN. This package could award Musk 423.7 million additional Tesla shares, valued at approximately $143.5 billion based on current stock prices, contingent on Tesla's market capitalization reaching an unprecedented $8.5 trillion—substantially higher than its present $1.1 trillion valuation.

The proposed compensation plan echoes Musk's 2018 pay package, which notably increased his wealth. Although it received shareholder approval twice, it was later rejected by a Delaware judge. Tesla is now aiming to reauthorize that scheme while expanding upon it, according to CNN. 'This is all about Musk being scared about being kicked out of Tesla because he only owns 13%,' stated Ross Gerber, CEO of Gerber Kawasaki and an early Tesla investor who has since largely divested, as reported by CNN.

Musk expressed his concerns on X, posting, 'I am uncomfortable growing Tesla to be a leader in AI & robotics without having 25% voting control.' He emphasized that without such control, he would prefer to develop products outside of Tesla. Musk currently holds 410 million Tesla shares worth around $139 billion and has stakes in companies like SpaceX, xAI, and X (formerly Twitter), bringing his net worth to $378 billion, according to Bloomberg.

A proxy statement included a shareholder proposal advocating for Tesla to invest in Musk's AI startup, xAI. While the company did not formally take a position or offer specifics on the potential investment's size or value, this reveals additional investor interest in Musk's AI endeavors.

Even amid Tesla's recent stock volatility—it remains 26% down from its December 2024 peak—Musk and his Wall Street supporters are optimistic about Tesla's long-term prospects. This optimism stems from Musk's ambitious plans for self-driving robotaxis and humanoid robots, which are expected to eventually outpace its automotive business. (ANI)

(With inputs from agencies.)