Saturday, March 29, 2025
Elon Musk Could Become the World’s First Trillionaire After Record Pay Package Approval
Summary: If Elon Musk meets all performance targets tied to his new pay package, he could earn more than $500 billion, taking his net worth to around $461 billion — making him the first person in history to potentially cross the trillion-dollar wealth mark.
Tesla shareholders have approved what is being called the largest executive compensation package in world history for CEO Elon Musk. The company announced on Thursday that the deal could be worth up to $1 trillion over the next 10 years, but only if Tesla achieves a set of highly ambitious performance goals — including the sale of one million humanoid robots.
According to the Bloomberg Billionaires Index, if Musk succeeds in hitting all targets, he stands to gain over $500 billion, significantly increasing his current net worth of approximately $461 billion. Musk’s wealth has been rising this year despite negative publicity linked to his political alliances and his advisory role in the Trump administration, which has impacted Tesla’s reputation among left-leaning consumers.
Tesla’s sales dropped during the first half of the year due to protests and reduced consumer demand. In response, Musk shifted focus toward robotics. He is betting on household assistant robots and autonomous robot taxis to drive Tesla’s future growth.
However, CNBC reports that none of these products are ready for commercial release. Some robot-taxi prototypes reportedly still require human safety operators.
To unlock the entire compensation package, Musk must achieve several milestones:
1. Tenure Requirement
Musk must remain Tesla’s CEO for at least 7.5 more years to receive any stock benefits. He is still allowed to continue as CEO of SpaceX and his AI company, xAI.
2. Market Capitalization Target
Tesla’s valuation must reach at least $8.5 trillion. If this happens, Musk will earn shares equal to up to 12% ownership of the company. He is already Tesla’s largest shareholder.
3. Operational Performance Goals
To secure full ownership benefits, Tesla must meet 12 specific operational goals, including:
Delivering 20 million Tesla vehicles
Reaching 10 million active subscribers for Full Self-Driving (FSD)
Producing one million humanoid robots
Deploying one million commercial robot taxis
Achieving eight different profitability benchmarks
4. Succession Roadmap
Musk must create a long-term transition plan for appointing a new CEO in the future, although no timeline is required for him to step down.
Musk does not receive a traditional salary. His compensation comes entirely from stock-based incentives, tied directly to Tesla’s performance. If Tesla reaches the $8.5 trillion valuation target, Musk’s shares alone could be worth $1 trillion, according to CNBC.
Musk emphasizes that this deal is not just about money — but about maintaining firm control over Tesla’s robotics vision.
“If I build a massive fleet of robots, I don’t want to be removed later,”
Musk said during a recent analyst webcast.
He argued that he must retain strong influence to safely manage what he called a “robot army.”
CNBC reports that over 75% of shareholders voted in favor of Musk’s compensation package, though Tesla has not yet disclosed the final vote tally. The details will be released in an upcoming SEC filing.
Leading up to the vote, Musk enjoyed widespread support from both small retail investors and major tech industry figures. Supporters argued that Musk will only benefit if Tesla becomes significantly more valuable — meaning shareholders profit first, not Musk.
