Elon Musk To Become First Trillionaire

At its 2025 annual meeting, Tesla shareholders overwhelmingly approved a compensation plan for Elon Musk that could make him the first trillionaire in history. More than 75 % of shares voted in favor of the package, which ties Musk’s payout to multiple performance milestones over the next ten years

Under the plan, Musk would receive up to roughly 423.7 million additional Tesla shares, if Tesla’s market capitalisation reaches approximately $8.5 trillion (from about $1-2 trillion currently) and other benchmarks are met—such as delivering millions of vehicles, deploying robotaxis, and achieving “humanoid robot” sales. The payout would be broken into 12 tranches and distributed over a decade. Musk does not take a salary, so this plan is entirely performance-based.

Supporters argue this aligns Musk’s incentives with Tesla’s long-term transformation—from electric vehicles to artificial intelligence, robotics, and autonomous services. For example, Tesla chair Robyn Denholm called the arrangement a way to motivate Musk to undertake “superhuman” effort and long-term vision. Critics, however, raise concerns including: the astronomical size of the award, shareholder dilution, corporate governance (concentrated control for Musk), key-man risk (reliance on Musk), and the possibility that ambitious goals may not be realistically achievable.

Institutional investors were divided. For instance, Norway’s sovereign wealth fund publicly said it would vote against the plan because of concerns about size and governance. The approval of the plan itself signals strong board and shareholder confidence (or willingness) in Musk’s vision and control over Tesla. The board explicitly warned that failure could lead Musk to shift focus away from Tesla.

Projections & Meaning

• For Tesla: The company is publicly signalling a pivot beyond cars toward AI, robotics and autonomous systems. If Musk succeeds, Tesla could morph into a technology-juggernaut rather than just an automaker. If the goals fail, investors may face disappointment and value erosion.
• For Musk: If the milestones are met, Musk would become the first trillionaire and greatly expand his control and wealth. But realising that depends on highly ambitious targets (market cap magnitude, robot production, autonomous fleet deployment).
• For shareholders and governance: The episode raises questions about executive pay norms: when does a pay package become so large it invites moral-hazard or misalignment? It also highlights governance issues when one individual (Musk) holds outsized control and influence.
• For broader markets: The plan may set a precedent for tying executive compensation to ultra-long-term and speculative tech/AI outcomes. This could influence how other technology and automotive companies structure executive incentives.
• Risks: If Tesla fails to deliver, or if market sentiment shifts, the value of the package could collapse or be perceived as mis-allocated capital. Also, regulatory, production, supply-chain, and competitive risks abound in EV/robotics markets.

References

• Reuters: “Elon Musk’s $1 trillion Tesla pay plan wins shareholder approval.” Reuters
• The Verge: “Tesla shareholders approve Elon Musk’s $1 trillion pay package.” The Verge
• Financial Times: “Tesla shareholders approve Elon Musk’s $1tn pay package.” Financial Times
• Wired: “Tesla shareholders approve Elon Musk’s $1T pay package.” WIRED
• The Guardian: “Tesla shareholders to vote on $1tn pay package for CEO Elon Musk.” The Guardian
• Associated Press (via news list): “Musk could become history’s first trillionaire as Tesla shareholders approve giant pay package.”