Elon Musk Could Reach Trillionaire Status Under Tesla’s New Plan
Elon Musk may become the first trillionaire if Tesla meets certain ambitious targets outlined in a recent company announcement.
The electric vehicle manufacturer detailed the terms of the incentive plan—which is unlike any other in corporate history—in an official disclosure that stated: "Yes, you read that correctly."
According to Tesla, Musk would need to increase the company's value from its current level of just over $1 trillion to $8.5 trillion over the next decade.
If the 54-year-old achieves this growth, he will receive additional shares that would boost his ownership stake from nearly 16% to over 25%. This would significantly increase his personal wealth, potentially exceeding $2 trillion.
Calculations of Musk’s current net worth differ, but according to a real-time ranking by Forbes, the South African-born entrepreneur is the world’s richest person with an estimated fortune of $430.9 billion. Investor and Oracle co-founder Larry Ellison ranks second with $272.3 billion.
Tesla disclosed the incentive plan in a filing submitted to U.S. regulators on Friday.
The document referenced a previous compensation agreement from 2018, approved by shareholders, which allowed Musk to earn a $55.8 billion bonus.
"The new plan builds on the structure of the 2018 award, ensuring Musk is rewarded only if performance goals are met and encouraging continued leadership during a period of significant growth," the company stated.
Tesla indicated that the updated terms include profit goals 28 times higher than the 2018 plan, alongside the requirement to develop new products. These include deploying 1 million driverless taxis and producing a million humanoid robots, which the company is currently working on.
Defending the size of Musk’s potential earnings, Tesla said: "If all targets are met, his leadership would make Tesla the most valuable company ever."
An $8.5 trillion valuation would more than double the current market capitalization of chipmaker Nvidia, currently the world’s highest-valued company.
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