Elon Musk Could Become World's First Trillionaire After Tesla Pay Plan Approval

‎Tesla shareholders have voted overwhelmingly to approve CEO Elon Musk’s massive pay package, potentially making him the world’s first trillionaire. The decision came during Tesla’s annual shareholder meeting, where more than 75% of shares cast were in favor of the deal. The vote excluded the 15% stake Musk already owns in the company.

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‎Tesla shareholders approve Elon Musk’s $1 trillion pay package, securing his control as CEO and setting bold goals for robots and self-driving tech.

‎Jae C. Hong/AP

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‎The announcement sparked cheers from attendees, with Musk thanking both the shareholders and the Tesla board. “I super appreciate it,” he said, following the confirmation of his landmark compensation plan.

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‎Musk’s pay deal is structured entirely as a stock-based grant, offering up to 423.7 million additional Tesla shares over the next decade. These shares could reach a value of about $1 trillion if Tesla achieves an $8.5 trillion market capitalization. To unlock the full amount, Tesla must meet a series of performance milestones, both financial and operational, with shares released in 12 equal tranches.

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‎The payout would make Musk’s compensation the largest in corporate history, equating to roughly $275 million per day over ten years if fully realized.

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‎Massive Growth Targets Ahead

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‎To reach the $8.5 trillion market cap required for the full payout, Tesla’s stock price must surge 466% from its current level. That valuation would exceed Nvidia’s recent $5 trillion market cap milestone by around 70%.

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‎Musk’s current estimated net worth stands at $473 billion, according to Bloomberg’s billionaire index. Most of that wealth stems from his ownership stakes in Tesla, SpaceX, and his artificial intelligence venture, xAI.

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‎Tesla’s board previously warned that rejecting the compensation plan could have led Musk to step down as CEO, as he had reportedly sought greater voting control through the package.

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‎Challenges and Shifts in Focus

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‎Tesla’s approval of the package comes amid a difficult financial period. The company has faced declines in sales and profits during the first half of the year and risks losing billions in U.S. government support for electric vehicles.

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‎Musk and other executives, however, emphasized that Tesla’s future growth lies beyond electric cars. The company is now focusing on self-driving technology and robotics, including plans for autonomous “robotaxis” and humanoid robots.

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‎During the shareholder meeting, Musk devoted much of his speech to Tesla’s robotics initiatives. He predicted that the company’s humanoid robots could surpass the success of its vehicle line. “I think it’s going to be the biggest product of all time by far,” he told shareholders, comparing the potential of Tesla’s robots to the ubiquity of smartphones.

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‎Musk claimed the robots could eventually perform complex tasks, even replacing surgeons and contributing to global economic change. Tesla aims to produce them at a cost of about $20,000 each, roughly equivalent to the price of an average car.

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‎Future Prospects and Control

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‎Despite the approval of the record-setting pay plan, Tesla’s ambitious goals remain unfulfilled. The company must overcome its current challenges and deliver on promises surrounding AI and robotics before Musk can unlock the full payout.

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‎Musk has maintained that his pursuit of additional shares is about securing control over Tesla’s direction rather than increasing personal wealth. “It’s not like I’m going to go spend the money,” he said during a recent investor call, adding that he needs enough voting power to maintain influence while remaining accountable to shareholders.