Elon Musk Offered $1 Trillion To Keep Running Tesla
Tesla’s board has approved a new pay package for Elon Musk that could make him the world’s first trillionaire, but there’s a catch.
The package would grant Musk an increasing number of shares in the company as it meets several profit, market capitalization and operational targets.
It’s similar to the $50 billion deal that was recently thrown out by a Delaware court, a decision the company is fighting to overturn, but on a much larger scale.
One key point is that the company’s value would have to rise from today’s $1 trillion to $8.5 trillion for him to reach the full award. The percent of shares he would own at that point would be worth slightly more than $1 trillion.
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He’ll also have to stay in an executive position at the company for at least seven and a half years to get any of the shares, according to the New York Times, and 10 for the full amount.
Musk and his brother Kimbal, who is on the board, recused themselves from the deliberations. Tesla’s shareholders will have to approve the package.
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The generous package comes from concerns that Musk’s many endeavors, including SpaceX and xAI, distract him from his work at Tesla and is meant to incentivize his focus on the company.
Tesla’s stock has been recovering since a recent dip that occurred during Musk’s time working with the Trump campaign and as the head of the Department of Government Efficiency during the early days of the new administration.
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Since stepping back from that, he has been increasingly involved in Tesla as it rolls out its new Robotaxi service, several new models and works toward launching its line of humanoid Optimus robots, which Musk sees as its main revenue driver in the future.