Elon Musk could become world’s first trillionaire with Tesla’s new pay package

The plan, announced by Tesla’s board on Sept. 5, would grant Musk compensation entirely in Tesla shares, pending approval at the company’s Nov. 6 annual meeting.

Musk, whose net worth is estimated by Forbes at more than $400 billion, could add about $900 billion if Tesla’s market value rises to $8.5 trillion from the current $1.1 trillion. The package would be the largest in corporate history and could leave him with nearly 29% ownership of Tesla, The New York Times reported.

According to Bloomberg, Musk warned Tesla’s board he might leave the company to "pursue his other interests" unless he secured about 25% voting control and was "fully paid for his past services."

To unlock the compensation, he would need to remain at Tesla for at least seven and a half years and meet demanding milestones, including deploying one million autonomous taxis, one million humanoid robots, and achieving a 24-fold profit increase.

The world's richest man, Elon Musk. Photo from X

"Simply put, retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history," board chair Robyn Denholm and director Kathleen Wilson-Thompson said in a letter to shareholders, as quoted by the New York Post.

The proposal could face pushback. Some investors have previously criticized Musk’s political involvement and questioned his commitment as CEO. In 2018, shareholders approved a similar performance-based package worth more than $50 billion, but it faced legal challenges and was struck down twice by a Delaware judge in 2024.

Analysts also point out that reaching the new targets may be extremely difficult. Tesla’s sales have fallen in the past year, and the company faces competition from global rivals in autonomous vehicles and robotics.

Critics argue the package underscores income inequality. Natalia Renta, associate director at Americans for Financial Reform, said: "His own median worker is making $57,000 while he is awarded a pay package that could add up to $1 trillion by being a part-time C.E.O.," she said. "It’s just very outrageous."

Tesla Motors was founded in July 2003 by tech entrepreneurs Martin Eberhard and Marc Tarpenning, named in tribute to inventor Nikola Tesla. The pair approached Musk in 2004 to raise funding, leading to a $7.5 million Series A round, with Musk contributing $6.5 million and becoming board chair, according to Investopedia.

Initially an advisor and investor, Musk pushed for greater control over product decisions and often overruled management. In August 2007, Tesla’s board, dominated by Musk, removed Eberhard as CEO and later from the company altogether. Musk became CEO in 2008 and has held the role since.