Elon Musk, the world’s richest man and CEO of Tesla, is in the spotlight once again for his extravagant pay package. Tesla recently disclosed its plan to award Musk with another trillion dollars if he meets certain performance targets. Yes, you read that right – a trillion dollars, which is equivalent to the GDP of the entire Netherlands.
This news comes after a Delaware judge rejected a previous $100 billion pay package for Musk, citing flawed negotiations and weak oversight by Tesla’s board. However, Musk was not left empty-handed as the company awarded him 96 million restricted shares valued at $29 billion as a “good faith” payment to keep him at the helm while they worked on an even bigger compensation package.
The new pay package offered to Musk by Tesla is valued at $87.8 billion and includes 12 tranches of shares tied to market capitalization and operational milestones. To receive these shares, Musk must stay on as either CEO or executive officer responsible for product or operations and achieve goals like delivering 1 million Optimus robots and 20 million Tesla vehicles, among others.
The company’s market cap would need to reach $8.5 trillion for Musk to receive the full payout, more than eight times its current valuation. This ambitious target is heavily reliant on the success of Tesla’s endeavors in robotaxis, AI, and humanoid robots. While Musk believes in the potential of these ventures to propel the company’s valuation to trillions, skeptics question the feasibility of achieving such goals.
Meanwhile, Rivian, a startup in the EV industry, is facing challenges as it announces layoffs to improve operational efficiency ahead of its R2 launch. The company, which is not yet profitable, is striving to compete with Tesla’s Model Y with its upcoming electric vehicles.
In a surprising turn of events, U.S. Immigration and Customs Enforcement (ICE) officers raided Hyundai’s EV plant in Georgia, alleging unlawful employment practices and arresting hundreds of workers. This incident has raised concerns about the company’s largest economic development project in the state’s history.
As Musk aims for a trillion-dollar payday, questions arise about the feasibility of achieving the set targets and the company’s focus on AI and robotics over its core EV business. With the stakes high and the challenges ahead, it remains to be seen if Musk can deliver on his promise and secure his place as the world’s first trillionaire.