It’s official: Elon Musk is on track to become the world’s first trillionaire.
If all goes to plan, Musk’s stake in Tesla will rise from about 13% to nearly 29%—a level of control he’s long sought.
“It’s called compensation, but it’s not like I’m going to go spend the money,” Musk added. “It’s just, if we build this robot army, do I have at least a strong influence over that robot army, not current control, but a strong influence? That’s what it comes down to in a nutshell. I don’t feel comfortable wielding that robot army if I don’t have at least a strong influence.”
Tesla’s stock fell as much as 43% between January and March as Musk devoted much of his time to leading the Department of Government Efficiency (DOGE). Since stepping back, shares have recovered to being up 16% year-to-date.
Many shareholders hope the new incentives will keep Musk focused on Tesla.
“Elon is the ultimate ‘key man’ of key man risk,” Baron wrote. “Without his relentless drive and uncompromising standards, there would be no Tesla.”
Not every Tesla investor was on board with the extravagant deal.
Glass Lewis and ISS, two proxy advisory services, urged Tesla shareholders to vote against the proposal, with the latter group citing “unmitigated concerns” with its magnitude and design. Musk then fired back during Tesla’s October earnings call, calling them “corporate terrorists.”
Meanwhile, Norges Bank Investment Management, the group behind Norway’s $2 trillion sovereign wealth fund which holds a 1.14% stake in Tesla, said it voted against the pay package.
“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk — consistent with our views on executive compensation,” the group said in a statement this week.
“Yesterday, the news that Elon Musk is going to be the first trillionaire in the world: What does that mean and what’s that about? If that is the only thing that has value anymore, then we’re in big trouble.”
