Tesla shareholders have approved a massive record pay package for Elon Musk, consisting of 303 million stock options worth over $47 billion. However, the initial package was ruled as flawed by a judge in Delaware, where Tesla is incorporated. Legal experts are uncertain if the recent shareholder vote will result in the options being restored to Musk. Despite efforts to move Tesla’s state of incorporation to Texas, Musk remains uncompensated as he has not received a cash salary or bonus from Tesla for over a year.
Musk has expressed the need for additional stock options, aiming to gain ownership of around 25% of Tesla’s stock. This compensation plan is crucial for him to continue leading Tesla in areas such as artificial intelligence and robotics. Musk has suggested that a decision on a new pay package may be delayed until the issues surrounding the 2018 package are resolved. The Tesla board acknowledges the importance of significant compensation to keep Musk focused and engaged in the company’s future challenges and goals.
Investors and fans of Musk support his acquisition of more shares in Tesla, as they believe he is essential to the company’s success and innovation in self-driving cars and robotaxis. Even if Musk’s stake in Tesla appreciates significantly, his current holdings could make him the world’s first trillionaire. However, critics argue that Musk is already compensated through his existing equity stake, which has provided him with substantial wealth for his efforts in the company.
Ark Invest predicts a five-year target price for Tesla shares at $2,600, a 1,300% gain from the current value, which would raise the company’s total market cap to over $8 trillion. This enormous potential growth in Tesla’s stock value could solidify Musk’s position as the world’s first trillionaire, surpassing the combined net worths of other tech billionaires like Jeff Bezos, Bernard Arnault, Mark Zuckerberg, Larry Page, and Bill Gates. Notably, Bezos and Zuckerberg did not achieve their wealth through stock options but by holding significant stakes in their respective companies as founders.
Despite the uncertainties surrounding Musk’s potential wealth accumulation through stock options, it is evident that his role in Tesla’s success is widely recognized and valued by investors and the Tesla board. Musk’s leadership in technological advancements and his vision for the future of transportation are seen as essential for Tesla’s continued growth and innovation. The outcome of the shareholder vote and potential restoration of Musk’s stock options will likely impact his influence and ownership in Tesla, shaping the company’s trajectory and his personal wealth in the coming years.
