Elon Musk is already the world’s richest man, but today he could take a giant step towards becoming the world’s first trillionaire.
Shareholders at Tesla are voting on a pay deal for their chief executive that is unlike anything corporate America has ever seen.
The package would grant Musk, who already has a net worth of more than $400bn, around 425 million shares in the company.
That would net him about $1trn (£760bn) and, perhaps more importantly to Musk, it would tighten his grip on the company by raising his stake from 15% to almost 30%.
The board, which has been making its case to retail investors with a series of videos and digital ads, has a simple message: Tesla is at a turning point.
Yes, it wants to sell millions of cars, but it also wants to be a pioneer in robotaxis, AI-driven humanoid robots, and autonomous driving software. At this moment, it needs its visionary leader motivated and fully on board.
Musk has served his warning shot. Late last month, he wrote on X: “Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla? It won’t be me.”
Not everyone is buying it, however.
With so much of his personal wealth tied up in Tesla, would Musk really walk away?
Musk poses after his company’s initial public offering at the NASDAQ market in New York on 29 June 2010. Pic: Reuters
Bad for the brand?
Others see his continued presence and rising influence as a risk. Norway’s sovereign wealth fund, the world’s largest, which owns 1.1% of the company (making it a top 10 shareholder), has already declared it will vote against the deal. It cited concerns about “the award’s size, dilution, and lack of mitigation of key person risk”.
Several major US pension funds have followed…
