Rhiannon Ingle
Elon Musk could become the first-ever trillionaire after receiving the world's largest payout.
The 54-year-old businessman and entrepreneur, known for his leadership of Tesla, SpaceX, Twitter, and xAI, has been the wealthiest person in the world for quite some time now, since 2021 with his latest reported net worth being over $500 billion earlier this month.
However, his wealth seems to have taken a minor tumble since then with Forbes' Real Time Billionaire List stating that he's currently worth $491.4 billion at the time of writing (7 November).
There has since been a pretty major development involving Musk and Tesla, meaning that his compensation package could potentially make him the world’s first trillionaire.
Advert
Now, this has come about after Tesla shareholders voted to approve a massive pay package for CEO Musk - the largest ever awarded to any corporate leader.
While over 75% of voting shareholders supported the plan, some major investors and advisory firms opposed it, citing concerns that it was simply too large and could dilute other shareholders’ ownership (meaning Musk would own a much larger share of Tesla, reducing others’ percentage).
The vote was pretty important given that Musk had hinted he might step back from Tesla if he didn’t receive greater control or rewards.
So, by approving the package, shareholders essentially secured the multi-billionaire's leadership at Tesla for the foreseeable future.
The pay Musk could receive is performance-based, meaning he will only earn it if he hits specific targets, including increasing Tesla’s market value to $8.5 trillion.
If he achieves such a feat, his stake in Tesla could be worth $2.4 trillion, and if he reaches that figure, he would be richer than the GDP of all but seven countries on Earth.
After the shareholder vote, Tesla’s stock rose 1.6% in after-hours trading, which indicates that investors were optimistic about Musk staying on.
In short, if Tesla continues to grow as planned, Musk’s wealth could reach unprecedented levels, potentially making him the first person ever worth over $1 trillion.
People have since rushed to social media to hit out over the potential payout with Bernie Sanders writing on X: "Musk, who spent $270 million to get Trump elected, is now in line to become a trillionaire.
"Meanwhile, 60% of our people are living paycheck to paycheck. Americans understand we're living in a rigged economy. Together, we can and must change that."
A second hit out: "You can’t tell me our systems aren’t rigged. 62% of Americans live paycheck to paycheck. While Elon Musk is on track to be the world’s first trillionaire. Disgusting."
"Elon Musk would be making $11.4 million per hour, while the average Tesla factory worker earns between $41k to $48k per year— less than a living wage," slammed another. "He’ll be a trillionaire while his workers are forced to rely on taxpayer funded social safety nets."
And a final X user echoed: "Congratulations to all the bootlickers of capitalism. You did it! Your blind obedience and unwavering loyalty to a system that exploits the working class to enrich the billionaire class has resulted in Elon Musk becoming the first trillionaire by 2027."