Elon Musk may soon receive a $1 trillion payment from Tesla as a bonus if he achieves several targets set by the company.
The 54-year-old entrepreneur joined Tesla in 2003, a year after the company was founded by engineers Martin Eberhard and Marc Tarpenning. He led the company’s first investment round and quickly became the chairman of the board.
In 2009, a legal agreement granted Musk and two others the status of official co-founders. Despite the controversies, it’s impossible to deny the impact Musk has had in transforming Tesla into the company it is today, something highly valued by investors.
However, in 2018, Musk had a $56 billion compensation package approved, only for a Delaware court to strike it down in 2024, stating that the Tesla board’s approval process lacked independence and didn’t fully inform shareholders.
Now, Tesla is planning to appeal the decision to the Delaware Supreme Court. And to keep Musk at the company, they’ve revealed a new, impressive compensation package for the entrepreneur, according to a report by Bloomberg News.
Musk, who is already the world’s richest man, could receive $1 trillion if he hits several targets, including selling 20 million vehicles, producing one million robotaxis, delivering one million humanoid robots, and increasing adjusted EBITDA to $400 billion, according to The New York Post.
Currently, Tesla is worth around $1.09 trillion, but if Musk is successful in meeting the company’s targets, Tesla‘s market value could rise to an impressive $8.5 trillion.
“Simply put, retaining and incentivizing Elon is critical for Tesla to achieve these targets and become the most valuable company in history,” wrote board chairwoman Robyn Denholm and director Kathleen Wilson-Thompson in a letter to shareholders.
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