Tesla approves historic reward: Elon Musk can collect $1 trillion

Tesla shareholders have approved a new compensation plan for CEO Elon Musk. The plan must bind him to the company for the next ten years and is linked to ambitious growth goals in terms of technology and market value. But how much can Musk earn if he achieves those goals?

$1 trillion bonus for Musk

The documents from the shareholders’ meeting show that this is an unprecedentedly large amount, namely a bonus that could amount to 1 trillion dollars and will be paid entirely in shares. He will only receive that amount if Tesla reaches a market value of $8.5 trillion under his leadership, while it is currently around $1.5 trillion. This would be the largest bonus ever awarded to a company director.

The reward does not only depend on the stock market value. Tesla must also take concrete steps in the development of robot taxis and AI robots. These technologies are seen as crucial to the future of the company. According to Musk himself, Tesla should not just be a car manufacturer, but a pioneer in artificial intelligence (AI).

The plans are seen as an ambitious strategy that could transform Tesla, but also entails major risks. The required growth would make Tesla larger than the combined value of Apple, Microsoft and Saudi Aramco. Still, three-quarters of shareholders agreed to the plan, mainly to keep Musk.

Protest in Texas

Not everyone is enthusiastic. Dozens of demonstrators took to the streets in the Texas capital Austin to protest against the Tesla CEO’s mega reward. The Norwegian sovereign wealth fund, which owns about 1 percent of Tesla shares, also spoke out against the proposal. According to them, the pay is excessive regardless of performance.

Still, Musk got his way. He had previously threatened to leave the company if shareholders voted against. The approval means he will remain at the helm of Tesla for the time being.

With an estimated fortune of almost $500 billion, Musk is already the richest man in the world. But if he manages to achieve the set goals, that wealth could triple. The question now is whether Tesla can actually grow towards that unprecedented limit of $8.5 trillion or whether the promise of the century turns out to be mainly symbolic.