Elon Musk, the world’s richest man, could soon become the first trillionaire if Tesla’s board approves a massive new pay package designed to keep him focused on the electric carmaker’s future.
What’s in the New Deal?
The proposal would give Musk 423.7 million Tesla shares—worth about $143.5 billion today—if Tesla hits some extremely ambitious growth targets. To get the full package, Tesla’s market value would need to soar to $8.5 trillion, far above its current $1.1 trillion valuation.
If that happens, those new shares alone could make Musk nearly $1 trillion richer, cementing Tesla as the most valuable company in history—worth double today’s leader, Nvidia.
Why Tesla Wants Musk Locked In
Tesla’s board says Musk is its “biggest asset” and wants to ensure he stays focused despite his growing empire, which includes SpaceX, xAI, and social media platform X (formerly Twitter). The proposal also requires Musk to create a succession plan for Tesla’s future leadership.
Analysts say the board is betting that Musk’s vision for self-driving cars, robotaxis, and humanoid robots could generate massive profits. Supporters believe keeping Musk in charge is critical for Tesla’s next growth phase in the AI era.
Musk’s Demand for Control
Musk has openly said he wants at least 25% control of Tesla to push forward with AI and robotics projects. Without it, he hinted he might build those innovations outside of Tesla.
Currently, Musk owns 410 million shares, worth about $139 billion, plus disputed stock options that would boost his stake to 18%.
Challenges Ahead
Despite Musk’s bold promises, Tesla faces serious hurdles:
- Growing competition from Chinese EV giant BYD.
- Falling profits and slower sales.
- Loss of revenue from U.S. emissions credits.
- Skepticism about Musk’s unfulfilled promises, especially around fully autonomous cars.
Critics warn that the stock may never hit $8.5 trillion, calling the package overly ambitious. But Tesla’s stock still jumped 5% after the news broke, showing Wall Street’s ongoing faith in Musk’s vision.
#ElonMusk #Tesla #Trillionaire #EVs #AI