Elon Musk could become the world’s first trillionaire if he meets ambitious targets set out in a new incentive scheme disclosed by Tesla, the electric car company he runs and where he is the largest shareholder.
Tesla outlined the terms of the unprecedented package in its latest stock market update, which began: “Yes, you read that correctly.”
Under the plan, Musk must raise Tesla’s market value from just over $1tn today to $8.5tn over the next decade. Should he succeed, the 54-year-old would be awarded additional shares that could lift his stake from nearly 16% to more than 25%, taking his personal fortune above $2tn. (A trillion is million multiplied by million; or a lakh-crore)
Forbes estimates Musk’s current wealth at $430.9bn, placing him ahead of Oracle co-founder Larry Ellison on $272.3bn.
The scheme, filed with the US Securities and Exchange Commission on Friday, comes as Tesla battles slowing growth and questions over Musk’s political interventions. The company’s European sales dropped 40% earlier this year, a decline some analysts linked to Musk’s outspoken backing of far-right parties and his fleeting alliance with Donald Trump.
Musk also divides his time between Tesla and other ventures including SpaceX, Neuralink, xAI and the Boring Company, alongside his frequent activity on social media platform X.
“One minute Tesla’s board is wondering if Elon Musk is a liability given his outspoken views and political distractions, the next they’re effectively saying ‘pick a number, any number’ to lock him in for as long as possible,” said Dan Coatsworth, investment analyst at London-based AJ Bell. He described the package as one that “beggars belief”, questioning whether any individual could be worth that much.
Nevertheless, Tesla’s board has offered Musk an emphatic vote of confidence. In a statement to shareholders, two directors called him the company’s “visionary leader” and urged investors to back the deal.
The company also highlighted past challenges in securing pay agreements for Musk. A legal ruling last year blocked a $55.8bn award announced in 2018 after investors argued its targets were improperly set. Tesla has appealed, with a hearing due next month.
According to Tesla, the new plan is 28 times more ambitious than the 2018 scheme, linking payouts not only to profit but also to ambitious product milestones, including the launch of 1m self-driving “robotaxis” and 1m AI-powered humanoid robots.
If Musk fails to at least double Tesla’s valuation within the 10-year timeframe, he will receive nothing. But if he delivers, Tesla argues his leadership would propel it to become “the most valuable company in history”.
At $8.5tn, Tesla’s valuation would dwarf even Nvidia, now the world’s most valuable company.
“Ultimately, shareholders will decide if he deserves a $1tn pay deal,” said Coatsworth. “Progress so far suggests Musk would need extraordinarily good fortune to reach that figure. Investors may back it in the hope of sharing the upside, but the bigger question is whether this sets a precedent for boardrooms across America to simply keep adding zeroes to executive pay. It all feels a symptom of weak corporate governance.”