Is Elon Musk worth $1 trillion? Shareholders get to decide

Core Viewpoint - Tesla shareholders are set to vote on an unprecedented pay package for CEO Elon Musk, which could potentially award him nearly $1 trillion in shares if performance goals are met [1][2]. Group 1: Pay Package Details - The proposed pay package is tied to ambitious performance goals, including reaching a $2 trillion valuation for Tesla, which is currently valued at approximately $1.5 trillion [4]. - If approved, the new pay plan would grant Musk more than a 25% stake in the company for achieving specific milestones, which increase incrementally up to an $8.5 trillion company valuation [5]. - The milestones also include product goals such as delivering 20 million vehicles, deploying 1 million robotaxis for commercial operation, and achieving 10 million full self-drive subscriptions [5]. Group 2: Implications of the Vote - Board chair Robyn Denholm warned that Musk could leave the company if shareholders reject the pay package, emphasizing the need to incentivize him to continue his leadership [2][3]. - Denholm highlighted that failing to motivate Musk through an equitable pay-for-performance plan could result in Tesla losing his time, talent, and vision, which have been crucial for delivering significant shareholder returns [3]. - Musk, already one of the highest-paid executives globally, has expressed a desire for more voting power over the company, particularly as he pivots towards artificial intelligence and the development of a humanoid robot [4]. Group 3: Strategic Direction - Tesla is at a critical juncture, focusing on autonomous driving technology and reducing reliance on traditional electric vehicles after a challenging year of sales [6].