Can Elon Musk become world’s first trillionaire? Yes, if…
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Elon Musk Photograph: (AFP)
Elon Musk, the richest person, could become the world’s first trillionaire if he is able to achieve the milestones laid down under the new proposal by the Tesla Board. Here’s how:
Elon Musk, who has achieved the title of the richest person in the world, could soon become the world’s first trillionaire. This would be possible if he meets the performance goals as per a proposal by the Tesla board on Friday (Sep 5). If the pay package is approved by the shareholders in a vote on November 6, the new proposal could allow the CEO to earn unprecedented sums of money.
What is in the new proposal?
According to Tesla’s board, the plan is linked with Musk’s ability to transform the company from an electric vehicle manufacturer into an AI and technology-driven powerhouse with expansion in areas like autonomous systems, artificial intelligence products and robotics, The New York Times reported. The plan is expected to be put to a vote at an annual meeting on November 6.
Can Musk become a trillionaire?
Currently, Musk has a net worth of more than $400 billion, as per Forbes. The new pay could add an additional $900 billion to his wealth. However, it is only possible if the value of Tesla stocks increases significantly in the coming years.
To achieve this, the company’s stock would need to reach an overall value of $8.5 trillion. This is significantly higher than the current market capitalisation of $1.1 trillion and roughly double the current market value of Nvidia, the most valuable company on the market as of now. Tesla (TSLA) shares were slightly higher in premarket trading on the news.
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Musk would need to remain at Tesla for at least seven and a half years to cash any of the shares, and 10 years to gain the full amount. He would need to meet various ambitious operational milestones, including commercial deployment of a million autonomous taxis and humanoid robots. He would also need to increase his profit by 24-fold.
Challenges faced by Musk
The elaborate pay plan is also expected to be slammed by some shareholders, who have alleged that the CEO has performed poorly in recent years. Musk has faced increasing criticism, especially for his role in the US President Donald Trump’s government as the head of the Department of Government Efficiency, which has damaged the company.
