Desk Reports:
Tesla shareholders could see Elon Musk become the world’s first trillionaire if they approve a new proposal. The proposed package would see Musk awarded an additional 423.7 million Tesla shares if he meets certain financial goals, valuing the company at about $143.5 billion at current market prices.
However, the condition for getting these shares is that Tesla’s market value will increase dramatically in the coming years to reach $8.5 trillion. As a result, the price of the shares will increase several times compared to the current one, making Musk the world’s first trillionaire. Tesla’s current market value is $1.1 trillion, which is much lower than Nvidia’s. Nvidia, with a current market value of $4.17 trillion, is the most valuable company in the world market.
In addition to Musk’s payment plan, Tesla’s shareholder filing includes another proposal, which calls for Tesla to invest in Musk’s artificial intelligence company XAI, which recently acquired social media company X (formerly Twitter), which Musk personally acquired in 2022 for $44 billion.
CNN reported Friday that Musk currently owns 410 million shares of Tesla, with a market value of $139 billion. He is already the richest person in the world thanks to his stakes in SpaceX, XAi and other companies. According to Bloomberg, his wealth is about $378 billion.
Another stock option package given to Musk in 2018 was declared invalid by a court, but shareholders have repeatedly voted in his favor. With the latest effort, Musk now controls about 18 percent of Tesla’s total shares.
Tesla shares nearly doubled to a record high in December 2024, but then fell due to political tensions, protests and a drop in sales. Although it has now recovered somewhat, it is still 26 percent down from its peak last December.
Still, Musk claims that self-driving cars and robotaxi services will bring huge profits in the future. He also promised to bring humanoid robots to the market that will surpass the car business. However, these have not yet been implemented. Tesla’s share price, however, increased slightly in pre-market trading after the new proposal.
