While Elon Musk is already the richest man in the world, his $1 trillion payday offer comes with a simple condition. Having secured the largest corporate package, Musk will earn about $878 billion in Tesla stock, causing his total wealth to escalate to $1 trillion. However, achieving the $878 billion package requires Musk to adhere to one condition, should he wish to earn it all. Musk must be able to achieve financial and technological victories that will redefine the future for Tesla.
Tesla is on the pathway to an impressive deal
If Tesla’s share price remains at an all-time high, Musk will be able to achieve the $878 billion deal. To ensure that Tesla’s share price remains high, the company would need to transform its operational goals, including those related to robotaxis, robots, and artificial intelligence. Tesla will also need to ensure that it produces 20 million vehicles within the next decade and even deploys over 1 million autonomous taxis throughout the world. Tesla would also need to secure 10 million subscriptions to its Full Self-driving (FSD)Software.
Last year, the company’s earnings were around $16.6 million. However, in order for Tesla to acquire this splendid deal, the company must earn around $400 billion this year. To achieve this, Musk has already mentioned working on Optimus, the company’s first humanoid robot. Although Optimus was first introduced in 2022, work on the robot is the company’s attempt to upscale its AI division.
Understanding the reasoning behind Tesla’s deal
Tesla’s shareholders were in favor of the ten-year compensation plan, with more than 75% backing a proposal outlined by Musk at the annual meeting in Austin, Texas. As per this package, Musk is granted 423.7 million in shares, which is equivalent to 25 percent ownership, should Musk be able to meet some extraordinary targets with Tesla.
Musk will get no salary or cash bonuses; he has opted for a stock option of 12 tranches, everyone linked to a respective performance metric. To get these financial tranches, Tesla will need to achieve its financial goal and market capitalization target. The first milestone will be achieved once Tesla surpasses $2 trillion, up until Tesla reaches $8.5 trillion valuation. The plan clearly has Musk focused on growing Tesla as best as possible.
What is included in this infamous package by Musk?
The $878 billion package represents the net value of Musk’s potential share-based rewards after payment or adjustment. Every one of the 12 tranches will only be put in place after all operational and valuation goals have been met. The rules state that Musk won’t be able to sell off his shares after having received them. These shares will remain locked for 7.5 years, making sure that he is linked to Tesla’s leadership for 10 years.
Musk is racing towards his trillion-dollar dream, and perhaps that is why Tesla is keen on revealing a hidden project, which sees him confirming a flying Tesla with a never-before-seen feature. This automaker is surely flying towards audacious dreams, with the CEO dreaming of a brighter future for himself and for Tesla.
Musk is betting on a brighter future for Tesla
When it comes to this incredible $878 billion deal, the package is about personal enrichment for Musk. It is also about the possibility that the company will become the first multi-trillion-dollar automaker, leading innovation in not only the mobility and autonomous mobility sector but also in the artificial intelligence industry.
All eyes are now on Elon Musk, and should he be able to succeed in his rather ambitious plans, he will become the world’s first trillionaire. This CEO continues to show the world that one company with unwavering ambition will result in goals worth billions, or even trillions. The good news for Tesla is that the Robotaxi is ready, and the surprise debut will happen soon in this one state. For now, the world must keep on watching this automaker.
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