Elon Musk net worth: How much richer will he get after Tesla’s $1 trillion pay deal? Details
Tesla shareholders voted to approve the largest CEO pay package in company history; It’s a deal that could make CEO Elon Musk the world’s first trillionaire. The package, which could be worth up to $1 trillion over 10 years, is contingent on Tesla meeting a series of ambitious performance targets, including sales of one million humanoid robots, the company said Thursday.
If Elon Musk reaches all milestones, he will earn more than $500 billion and his current net worth will increase to $461 billion. Bloomberg Billionaires Index.
Although Tesla’s brand has taken a hit among left-leaning consumers due to Elon Musk’s political connections and his role in the Trump administration’s Department of Government Efficiency (DOGE), its fortunes have continued to rise this year.
As protests and falling revenue hurt Tesla’s sales in the first half of the year, Musk shifted his focus to robot development. It is investing in products such as domestic worker robots and self-driving robotaxis to stimulate growth. But, CNBC reports that neither product is ready for market, droids are not available for order, and robotaxis require workers in the vehicles for safety.
What Elon Musk needs to achieve to get paid
In order to receive the full compensation package, Elon Musk must achieve certain goals. This also depends on Tesla meeting a set of operational goals and reaching a certain market capitalization. Here are the conditions the manager must meet:
— Eligibility period: Elon Musk must remain Tesla CEO for seven and a half years to receive any share of the new pay package; but the deal allows him to continue his other CEO roles at rocket company SpaceX and artificial intelligence startup xAI.
— Target share value: The package would give Musk a stake of up to 12 percent of the company if Tesla’s market value rises to at least $8.5 trillion. He is already Tesla’s largest shareholder.
— Operational milestones: To secure the full 12% of the company, Tesla must meet 12 operational milestones. These include delivering 20 million Tesla vehicles, reaching 10 million active subscriptions for the Full Self-Driving service, producing one million robots, deploying one million robotaxes in commercial operation, and meeting eight separate profitability criteria.
— Succession planning: The agreement also requires Musk to “develop a framework” for the eventual successor to the new Tesla CEO, but does not lay out a timeline for Musk to leave the CEO role.
Elon Musk is not currently receiving a salary. His compensation is entirely in stock options and tied to Tesla’s performance. If the company achieves its goals, Musk’s shares could be worth $1 trillion if the company reaches a market cap of $8.5 trillion. CNBC reported.
Why does Elon Musk want control?
Elon Musk framed the deal as more than just financial. He sees this as a way to maintain control over Tesla and its products, especially its robotics ambitions.
“If I go ahead and build this massive army of robots, will I be deposed at some point in the future? That’s my biggest concern,” he said in a webcast with Wall Street analysts last month.
He emphasized that he would not feel comfortable creating a “robot army” unless he had strong influence over the company. CNBC reported.
Shareholder support and public reaction
More than 75% of shareholders voted in favor of Musk’s pay offer, but Tesla has yet to release its final vote tally and plans to detail it in its upcoming SEC filing. CNBC reported.
In the weeks before the vote, Musk’s fans, from small retail shareholders to prominent Silicon Valley investors, took to social media app
