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Journalism of Courage
Tesla’s board on Friday proposed a new compensation plan for CEO Elon Musk that could make him the world’s first trillionaire, provided he meets a set of performance goals.
The package, composed entirely of Tesla shares, must still be approved by shareholders, with a vote scheduled for November 6.
Tesla’s board said the plan is tied to Musk’s ability to transform the company from an electric vehicle manufacturer into a technology and AI-driven powerhouse, with milestones expected in areas like autonomous systems, robotics, and artificial intelligence products, as per a report by The New York Times.
According to a securities filing, Musk would need to boost Tesla’s market valuation eightfold over the next decade — from its current $1.1 trillion to $8.5 trillion — to unlock the full value of the package. This would need a leap from company’s current $1.1 trillion market cap and nearly double the value of Nvidia, the world’s most valuable company.
As per a report by CNN, Tesla’s proxy statement detailing the plan also included a shareholder proposal for the company to take a stake in xAI, Musk’s privately held artificial intelligence venture. Such a move would not only deepen Tesla’s AI ambitions but also further tighten Musk’s grip across his sprawling business empire.
If successful, the plan could add nearly $900 billion to Musk’s existing fortune of over $400 billion, cementing the largest executive compensation deal in corporate history.
Earlier this year, Tesla granted Musk an interim package worth $29 billion in restricted stock, designed to secure his leadership through at least 2030 as the company accelerates its AI-first strategy.
