In a recent discussion on “The Claman Countdown,” Dan Niles, founder of Niles Investment Management, shared insights on Tesla’s ambitious compensation plan for CEO Elon Musk. On Wednesday, Musk achieved a historic milestone, reportedly becoming the first individual to surpass a net worth of $500 billion. This significant financial achievement occurred around 3:30 p.m. ET and placed him approximately $150 billion ahead of Larry Ellison, co-founder of Oracle and the world’s second-richest person, according to Forbes.
Musk’s financial journey has been nothing short of extraordinary; his wealth surged from $24.6 billion in March 2020 to various milestones, hitting $100 billion by the end of 2020, $200 billion in 2021, and $400 billion by 2024, culminating in the latest figure of $500 billion. Analysts speculate that at his current trajectory, Musk could potentially become the world’s first trillionaire by 2033, coinciding with Tesla’s proposed $1 trillion compensation package that is expected to begin vesting.
In a post on X earlier this month, Musk emphasized that his focus is not solely on personal compensation but on maintaining his influence over Tesla to ensure safety and operational integrity, particularly as the company prepares to produce millions of robots. He expressed concerns about being ousted by activist shareholders who may not hold shares in Tesla, voicing his discomfort with the possibility.
On the same day Musk’s fortunes increased with Tesla’s stock rising nearly 4%, adding roughly $9.3 billion to his net worth. The stock has experienced a dramatic increase since April, when Musk announced he would step back from his role in President Trump’s Department of Government Efficiency to concentrate on Tesla.
Tesla’s market capitalization is now nearing its all-time high, with Musk’s 12% stake valued at approximately $191 billion. Additionally, Musk’s other ventures significantly contribute to his wealth, including SpaceX, valued at $400 billion, and xAI Holdings, which holds a valuation of around $60 billion.
In the context of Musk’s burgeoning wealth, Tesla’s board of directors recently proposed a colossal compensation plan that could ultimately total $1 trillion, marking a record in executive pay packages. This plan includes providing Musk with up to 12% of Tesla’s stock, contingent upon the automaker achieving ambitious goals such as a market capitalization of $8.5 trillion along with various operational milestones over the next decade.
As Musk continues to navigate his roles at Tesla and beyond, the implications of these developments could have far-reaching effects on the tech and automotive industries alike.
