Khaberni - American billionaire Elon Musk, CEO of Tesla, could become the first trillionaire in history if shareholders approve the largest compensation plan in American corporate history today, Thursday.
The plan would grant Musk the possibility of acquiring an additional 423.7 million Tesla shares over the next ten years, provided that the company's market value rises to $8.5 trillion, which requires an increase of about 466% from its current value. If achieved, Musk would gain an estimated trillion dollars over the duration of the plan, equivalent to $275 million daily over ten years.
However, this huge reward is accompanied by significant political and financial risks. Tesla has warned that Musk might "pursue other interests" if the plan is rejected, making the shareholders' vote pivotal for the future of the company.
Despite a decline in Tesla’s sales and profits this year, Musk asserts that the company is heading towards a transition from manufacturing electric cars to self-driving vehicles and humanoid robots, mentioning the "robotaxi" project which promises to revolutionize autonomous transportation.
On the other hand, Musk faces sharp criticism from major investment funds and advisory firms, notably Glass Lewis and ISS, which have called for voting against the plan, considering the targets "easy to achieve" and the compensation amount "disproportionate" to the company's performance.
American investor Ross Gerber, one of the most prominent critics of the deal, said: "If Musk earns a trillion dollars over ten years, that means he would be making $275 million a day... I do not think that's fair to the shareholders."
Despite the objections, analysts expect that the majority of shareholders will approve the plan, as many consider Musk to be a crucial element in Tesla’s future, and maintaining him is more important than the cost of the plan itself.
