The pay package is unprecedented in both its size and the scale at which Tesla would have to grow for Elon Musk to achieve it.
Tesla has unveiled a new pay package for Elon Musk that could turn the world’s richest man into the first trillionaire.
The EV giant announced on Friday that it would submit the enormous new compensation plan, which requires the Tesla CEO to boost the company’s valuation to $8.5 trillion, for shareholder approval in November.
The proposed pay package is unprecedented in both its size and the scale at which Tesla will have to grow for Musk to achieve it.
Here are five takeaways from what could end up being one of the largest pay packages in corporate history.Musk needs to double Tesla’s valuation to unlock the first tranche of shares
The structure of the eye-watering pay package means Musk needs to grow Tesla’s business at an unprecedented rate.
To unlock just the first portion of shares, the billionaire would need to nearly double Tesla’s valuation to $2 trillion. The final tranches of shares would not vest until the EV giant’s valuation has hit $8.5 trillion, double the market cap of Nvidia, the most valuable company ever.
The full pay package is also contingent on Tesla meeting 12 „operational milestones.“
Those include selling about 12 million cars and one million Optimus robots over the next decade, putting a million robotaxis on the road, and boosting adjusted earnings from $16.6 billion in 2024 to a staggering $400 billion.
That’s way above tech giants like Microsoft and Apple, which reported adjusted earnings of around $162.
