Tesla CEO Elon Musk could become the world’s first trillionaire.
Musk, 54, is in line for a payout of US$1 trillion if his electric car company meets a series of targets over the next 10 years, according to documents released by Tesla on Friday.
Tesla, which is leaning heavily into robotics and artificial intelligence, said in the regulatory filing that the package has a dozen share tranches that include awards for Musk if targets — ranging from car production to the total value of the company — are met over that time period.
The company would have to reach a market valuation of $2 trillion and achieve 20 million vehicle deliveries very early in the plan for Musk to receive the payout. Tesla delivered fewer than two million vehicles in 2024.
It would also be required to have one million robotaxis in commercial operation and one million artificial intelligence bots delivered.
Musk, who is already the world’s richest person, would need to remain with Tesla for at least seven-and-a-half years to cash out on any stock, and 10 years to earn the full amount.
All compensation would be in the form of Tesla shares. The package is expected to be put to a vote at an annual meeting on Nov. 6, where it must be approved by the company’s shareholders.
The tech billionaire would also receive more voting power over Tesla under the proposed plan and would be required to come up with a framework for someone to succeed him as CEO of the company.
According to Forbes, Musk’s current net worth is more than $400 billion. The potential new pay could add about $975 billion if he reaches the series of goals set by Tesla, CNBC reports.
Tesla’s last shareholders meeting was on June 13 last year, when investors voted to restore Musk’s record $44.9-billion pay package that was thrown out by a Delaware judge earlier that year.
The company’s shares have plunged 25 per cent this year, largely due to blowback over Musk’s affiliation with U.S. President Donald Trump. But Tesla also faces intensifying competition from the big Detroit automakers and particularly from China.
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Tesla sales have fallen precipitously in Europe after Musk aligned with a far-right political party in Germany. In January, Musk made a surprise virtual appearance during an Alternative for Germany (AfD) election campaign event in Halle in eastern Germany.
Addressing a hall of 4,500 people alongside party leader Alice Weidel, Musk spoke about preserving German culture and protecting the German people.
Musk spoke in support of the far-right party, saying: “I’m very excited for the AfD, I think you’re really the best hope for Germany. Something I think that is just very important is that people take pride in Germany and being German. This is very important. It’s OK to be proud to be German. This is a very important principle.”
“It’s good to be proud of German culture, German values, and not to lose that in some sort of multiculturalism that dilutes everything,” Musk told onlookers.
Earlier that same month, following a post-inaugural speech where Musk made multiple Nazi salute-like motions, U.K.- and Germany-based activist groups projected a still image of the billionaire tech mogul mid-gesture alongside the words “Heil Tesla” onto the outside of the company’s Gigafactory in Berlin.
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Crowds protesting Musk’s purge of the U.S. government under Trump also began amassing outside Tesla dealerships throughout the U.S. and in some cities in Europe in March.
The protesters were trying to escalate a movement targeting Tesla dealerships and vehicles in opposition to Musk’s previous role as the head of the newly created Department of Government Efficiency (DOGE), where he gained access to sensitive data and shuttered entire agencies as he attempted to slash government spending.
Sales plunged 40 per cent in July in the 27 European Union countries compared with the year earlier, even as sales overall of electric vehicles soared, according to the European Automobile Manufacturers’ Association. Meanwhile, sales of Chinese rival BYD continued to climb fast, grabbing 1.1 per cent market share of all car sales in the month versus Tesla’s 0.7 per cent.
Last month, Tesla said it gave Musk a stock grant of $29 billion as a reward for years of “transformative and unprecedented” growth, just six months after a judge ordered the company to revoke his massive pay package.
The electric vehiclemaker said in a regulatory filing in August that Musk must first pay Tesla $23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 pay package that was awarded to the company’s CEO.
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— With files from The Associated Press