Elon Musk’s path to world’s first trillionaire
In this DML Report…
Tesla shareholders voted Thursday to approve CEO Elon Musk's $1 trillion pay package, with more than 75% in favor at the annual meeting. The package, the largest on record, consists of 12 tranches of stock options tied to performance milestones over the next decade. The first tranche unlocks if Tesla achieves a $2 trillion market valuation and delivers 20 million vehicles. The second requires a $3 trillion capitalization and delivery of 1 million Optimus humanoid robots. Meeting all targets would elevate Tesla's market value to $8.5 trillion, granting Musk ownership of about a quarter of the company's shares and potentially making him the world's first trillionaire. Even achieving the first two benchmarks would yield Musk $26 billion, surpassing the combined lifetime compensation of Meta's Mark Zuckerberg, Apple's Tim Cook, and Nvidia's Jensen Huang, per a Reuters analysis. Musk, 54 and currently the richest person with a $490.1 billion net worth according to Forbes, had warned he might leave Tesla without the package.
The approval comes after a Delaware judge invalidated Musk's prior $56 billion 2018 compensation plan as excessive and conflicted, prompting Tesla to reincorporate in Texas while the case remains in litigation. Proxy advisory firms ISS and Glass Lewis opposed the new package, citing its excessiveness. Critics included Pope Leo XIV, who said it defies "the value of human life, of the family, of the value of society," and Norway's sovereign wealth fund, which voted against it. Betting platform Kalshi estimated a 92% approval probability beforehand. Supporters like billionaire investor Ron Baron described Musk as the ultimate "key man" risk, stating on X: "Without his relentless drive and uncompromising standards, there would be no Tesla." Tesla's board highlighted Musk's role in deploying millions of Optimus robots and self-driving taxis, quoting him from the third-quarter earnings call: "If we build this robot army, do I have at least a strong influence over that robot army? I don’t feel comfortable building that robot army if I don’t have at least a strong influence." The board campaigned via a website, urging: "The future of Tesla is in your hands" and "If you believe, like us, that Elon is the CEO that can make our ambitious vision a reality, vote NOW."
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The package imposes no restrictions on Musk's political activities, amid concerns over his former involvement with President Trump's Department of Government Efficiency and Tesla's recent sales decline. Tesla's stock has risen nearly 20% year-to-date despite challenges including an aging vehicle lineup and competition from Chinese EV makers like BYD. Musk indicated in July that the company may face tough quarters ahead but expects improvements through scaled autonomy in the second half of 2026.