Saturday, September 6, 2025

Tesla Proposes Elon Musk Pay Package That Could Make Him The World’s First Trillionaire

Elon Musk, already the wealthiest individual on the planet, may be on track to become the world’s first trillionaire. The Tesla board of directors has proposed an extraordinary new compensation plan designed to keep Musk focused on the electric vehicle maker as it navigates increasing challenges in the automotive and technology sectors.

The proposed package would reward Musk with 423.7 million additional shares of Tesla stock if the company is able to achieve unprecedented growth. At today’s stock value, those shares are worth an estimated $143.5 billion. However, Musk would only be eligible to receive the payout if Tesla’s market capitalization soars from its current $1.1 trillion to an ambitious $8.5 trillion.

If achieved, such a valuation would make Tesla the most valuable company in history, surpassing Nvidia, currently the world’s largest publicly traded firm by market value. It would also cement Tesla’s position as the most dominant automaker globally, despite competitors like Toyota producing more vehicles and generating higher profits.

Tesla’s latest move echoes Musk’s previous pay plan, which was initially considered overly ambitious but ultimately contributed significantly to his wealth as the company met growth milestones.

The proxy statement outlining Musk’s proposed compensation also included a shareholder proposal for Tesla to invest in xAI, Musk’s privately held artificial intelligence venture. While the statement did not specify the size or terms of a potential stake, supporters argue such an investment could strengthen Tesla’s foothold in the rapidly expanding AI sector.

XAI has already garnered attention following its acquisition of X, formerly known as Twitter, which Musk purchased in 2022 for $44 billion. Any financial link between Tesla and xAI could further boost Musk’s fortune, given his majority ownership in the AI firm.

Musk’s Current Holdings

Musk currently owns about 410 million Tesla shares, valued at roughly $139 billion based on recent closing prices. Combined with his ownership stakes in SpaceX, xAI, and several other ventures, Musk’s personal fortune is estimated at $378 billion, according to the latest calculations.

Should Tesla’s market capitalization rise to $8.5 trillion under the proposed plan, Musk’s additional shares could be worth nearly $1 trillion alone, further extending his lead as the richest person in the world.

The proposal will now move to Tesla shareholders for review and discussion. If approved, it could mark one of the most significant executive compensation plans in corporate history—and potentially rewrite the record books on personal

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