Will Elon Musk become the first trillionaire in history? Tesla meeting decides the title

Amid widespread anticipation from the financial markets, shareholders of the American electric car company Tesla are preparing to vote on a proposal that grants the company’s CEO, Elon Musk, a stock package that could make him the first trillionaire in history, if approved. 

Musk is already the richest man in the world with a net worth of $493 billion, according to Forbes magazine, and is far ahead of some of the richest people in the world in recent years.

And the compensation package, which amounts to a trillion dollars, was It was proposed by Elon Musk, and is based on the growth of the market value of Tesla (by increasing Tesla stock prices) and achieving financial and operational performance standards. “Trillion Dollars”, the controversial proposal aims to grant Musk stock bonuses worth up to $50 billion, if he is able to achieve a set of ambitious operational and financial goals, most notably raising Tesla’s market value by 80% and doubling sales and profits in the coming years.

But the road ahead of Musk is not paved with roses, as major pension funds, including the American pension fund “Calpers”, have announced their categorical rejection of the plan, Considering that Tesla’s board of directors is too subject to the influence of Musk and his Kimball brothers, and that the proposed package is exaggerated and unjustified.

Among the most prominent opponents is the Norwegian sovereign wealth fund, which is the largest in the world with a value exceeding $1.9 trillion and owns 1.2% of Tesla shares, which announced in a statement reported by the Wall Street Journal its official rejection of the proposal.

On the other hand, its supporters believe that Musk is the only mastermind capable of leading Tesla towards a revolutionary technological future, in which the company’s self-driving cars and Optimus humanoid robots excel. In markets and homes. If shareholders approve, Musk will receive approximately 30% of Tesla shares, giving him almost complete control over the company’s decisions.

Musk says that the matter is not a purely financial motive, but rather a means to secure his managerial future in the company and ensure the continuation of his vision of building a “robot army.” He runs factories and homes without human intervention.

This statement comes in a clear reference to the “Optimus” humanoid robotics project. Which Tesla is betting on to be its next industrial future, which makes the issue of control and management for Musk an existential issue more than a financial one. Although Tesla’s market value exceeded $1.5 trillion, the company’s recent performance has been marred by a decline, as sales in Germany fell by 50% last month.

Also, Musk’s recent promises about autonomous taxis or licensing self-driving software in Europe have not been fulfilled. Although he owns about 13% of Tesla shares after a series of sales during the past two years, CEO Elon Musk confirmed that he has not received any direct wages for years. The last huge bonus package he received dates back to 2018, but it is still stuck in the corridors of the American judiciary, after a number of shareholders filed a lawsuit in which they claimed that the board of directors did not provide sufficient information to evaluate the compensation that Musk received at the time.

On the other hand, sources suggest that shareholders will approve Musk’s new proposed package, which may reach a value of one trillion dollars. The proposed package – unveiled in early September – would give Musk 12 huge batches of stock options tied to goals the board sees as ambitious. Tesla CEO Robin Denholm, a friend of Musk who became very wealthy as a member of Tesla’s board, appealed to shareholders last week to approve the unprecedented compensation package, with the threat of Musk leaving the company.

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