Elon Musk may become the world’s first trillionaire if he meets specific performance targets established by Tesla, the electric car company he leads and where he holds the majority of shares. Tesla disclosed an unprecedented incentive package in its latest stock market update, indicating that Musk would need to boost the company’s market value from just over $1 trillion to $8.5 trillion over the next decade.
Under this plan, Musk’s ownership stake in Tesla could increase from approximately 16% to over 25%, potentially raising his net worth beyond $2 trillion. Current estimates place Musk’s financial standing at around $430.9 billion, with Larry Ellison trailing at $272.3 billion.
This incentive package, which was filed with the US Securities and Exchange Commission, follows a period of scrutiny regarding whether Musk’s political views and activities might negatively impact Tesla. Earlier this year, the company faced a 40% drop in European sales, which some analysts have linked to Musk’s public support for certain political factions and his association with former President Donald Trump.
Musk’s responsibilities span multiple ventures, including SpaceX and Neuralink, along with his engagement on the social media platform X (formerly Twitter). Observers express concerns about potential distractions arising from these commitments.
For the new pay structure to be approved, it requires shareholder support, despite the skeptics questioning its justification. Previous incentive plans encountered legal challenges, culminating in a ruling that favored shareholders who argued that the targets were improperly set. Musk’s new compensation plan aims to incentivize significant growth in Tesla, featuring profit and new product targets considerably higher than those set in earlier agreements.
If Musk fails to achieve the outlined goals within the designated timeframe, he will receive no financial award. While shareholders hold the ultimate decision-making power, the implications for corporate governance are still under examination.
Source: https://www.theguardian.com/technology/2025/sep/05/tesla-elon-musk-trillion-dollar-pay-package