Tesla will reward billionaire Elon Musk with $1,000 billion if he helps the company increase its value

Tesla's board of directors has proposed a $1 trillion bonus for founder Elon Musk if he can help the company's market value reach $8.6 trillion.

Billionaire Elon Musk at the opening ceremony of a new production line at the Tesla factory in China in 2020 - Photo: REUTERS

According to Reuters, Tesla's plan to give Mr. Musk a huge bonus was submitted to US regulators.

In it, Tesla's board argued that "traditional compensation packages awarded to executives at other companies were determined to be inadequate to provide incentive compensation for Mr. Musk."

The plan calls for Mr. Musk to own up to 12% of Tesla, worth about $1.03 trillion, if the company reaches a target market value of $8.6 trillion. To receive the award, Mr. Musk would have to find a way to increase Tesla’s valuation by nearly eightfold, or about $7.5 trillion, over the next decade.

According to Reuters, this bonus will significantly increase Mr. Musk's voting power at Tesla from the current level of about 13% of shares, increasing debate about how he is managed and who will be able to succeed him.

The board confirmed that the bonus will be distributed in tranches, linked to market capitalization growth and operational milestones such as mass production of robot taxis and humanoid robots.

South African-born billionaire Elon Musk has transformed Tesla from a small electric car startup into the world's most valuable automaker, expanding production globally and boosting the electric vehicle industry.

However, Tesla has recently lost market share to Chinese rivals and other automakers amid declining demand for electric vehicles and intensifying competition in key markets.

Supporters of Mr. Musk’s proposed compensation package argue that his compensation plans are tied to long-term growth goals. Critics, however, say it makes Tesla increasingly dependent on the erratic billionaire.

“This is a ridiculously large compensation package. It raises a lot of questions, but last year Mr. Musk moved Tesla from Delaware to Texas to avoid all those questions,” said Brian Quinn, a professor at Boston Law School.

To put that into perspective, the bonus that Mr. Musk will receive if he completes the assigned task is more than the estimated GDP of hundreds of countries in 2025, including developed countries like Switzerland, Singapore, Sweden...

“Given that Tesla’s stock price is essentially sentimental and seemingly has little to do with the automaker’s actual performance, I doubt they would approve such a bonus plan,” he continued.

DUY LINH

Source: https://tuoitre.vn/tesla-se-thuong-1-000-ti-usd-cho-ti-phu-elon-musk-neu-giup-cong-ty-tang-gia-tri-20250905210846423.htm