Elon Musk Could Be First Trillionaire as Tesla Board Dangles Juicy Offer, Dangote Gets New Position
- The electric car manufacturing company, Tesla, has laid out a $1 trillion compensation strategy for its CEO, Elon Musk
- The deal involves Musk taking the company from its current $1.1 trillion market cap to $8.6 trillion in 10 years
- If achieved, the deal will make Musk the world's first-ever trillionaire even though he is currently the world's richest man with $386 billion
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Tesla’s Board has laid out a $1 trillion compensation offer for Elon Musk, which he will get if he grows the electric car company’s market cap from $1.1 trillion to $8.5 trillion and achieves several other operational milestones.
The award would be given in tranches, and the last two quotas need a board-approved CEO succession plan.
Source: Twitter
Tesla Board baits Musk with juicy offer
According to a Reuters report, Tesla plans to grant Musk about 423.7 million performance-based restricted shares, representing 12% of the company’s current shares, split into 12 equal tranches.
The report stated that the plan sets 12 market cap targets, starting at $2 trillion for the first, followed by nine raises of $500 billion each, and finally two $1 trillion milestones, totalling $8.6 trillion.
The market cap milestone must be sustained, meaning the electric car firm must attain a 30-day and a six-month trailing average market value.
Key performance index for Musk
The company has set 12 operational milestones, including rolling out robot taxis and robots, and increasing profits as measured by the adjusted EBITDA.
The four product goals include:
- A total of 20 million Tesla vehicles must have been delivered.
- 10 million paid Full Self-Driving (FSD) subscriptions on average over three consecutive months; free trials will not count.
- 1 million “Bots” delivered (AI robots like Optimus), counted from the September 3 grant date.
- A million driverless robot taxis are in commercial service on average over three successive months.
The offer is conditional
Also, the EV company’s plan proposes that if any goals are not met by the end of the 10-year programme, the associated award would be forfeited.
This came as the company unveiled its new Neue Klasse 2X3 electric SUV.
Experts say if Musk stops serving in an approved role, all unvested shares will also be forfeited, except in certain cases like qualifying terminations in control.
Musk remains the world’s richest
The deal, if achieved, will make Musk the world’s first-ever trillionaire.
Data from the Bloomberg Billionaire Index shows that the billionaire is currently worth $386 billion.
The index shows that he gained about $8.71 billion in the last 24 hours, making him the world's richest man.
Dangote rises in new worth
Meanwhile, Nigeria’s richest man, Aliko Dangote, has a net worth of $28.7 billion and is ranked the 71st richest person in the world.
Dangote’s wealth ballooned after his refinery began operations. However, most of his wealth comes from his cement company, where he holds over 86% shares.
Source: Getty Images
Analysts have predicted that Dangote will hit $30 billion in net worth by the end of 2025.
Elon Musk breaks a new record
Legit.ng earlier reported that the world’s wealthiest individual, Elon Musk, is now worth a staggering $348 billion, thanks to a surge in Tesla’s shares on Friday, November 22, 2024, and a new funding round, which gave his artificial intelligence startup, xAI, a $50 billion valuation.
The new figure surpasses the previous record held by Musk in 2021 when his net worth hit $340 billion.
Data from the Bloomberg Billionaire Index shows that the American billionaire made a whopping $9.2 billion on Friday, November 22, 2024.
Source: Legit.ng
