Elon Musk, already the world’s richest person, could be on the path to becoming the first trillionaire in history after Tesla’s board unveiled a massive new pay package for its CEO.
The plan would grant Musk 423.7 million additional Tesla shares if the company achieves extraordinary growth.To unlock the shares, Tesla’s market capitalization must first rise to $2 trillion, nearly double today’s value, and eventually reach $8.5 trillion.
Musk must also meet ambitious operational and financial milestones, such as having 1 million robots in operation or boosting Tesla’s adjusted operating income to $50 billion, well above the $16.6 billion it reported last year.
For Musk to receive the full package, Tesla’s market capitalization would need to rise to $8.5 trillion, far beyond its current $1.1 trillion valuation. That milestone would make Tesla the most valuable company in history, worth about twice Nvidia’s current market cap.
“It’s a big pay package but Tesla needs to keep its biggest asset in Musk as CEO,” Wedbush Securities analyst Dan Ives told a media outlet. “In this AI era Musk now will drive its next leg of growth. The Board had a $1 trillion dollar decision and made the right one.”
The company’s proxy statement stressed Musk’s role in Tesla’s future, saying the board “believes that Mr. Musk singularly possesses the leadership characteristics necessary to transform Tesla and realize its long-term mission at an unparalleled level.”
Musk already owns 410 million Tesla shares, worth $139 billion, alongside stakes in SpaceX, xAI, and other ventures. He has said it is essential for him to hold around 25% of Tesla’s voting control. “I am uncomfortable growing Tesla to be a leader in AI & robotics without having 25% voting control.Unless that is the case, I would prefer to build products outside of Tesla,” he wrote in a post on X.
The new package connects Musk’s fortune to Tesla’s ability to achieve unprecedented growth. If those targets are reached, he would not only secure his position as the richest person alive, but also become the world’s first trillionaire.