Tesla shareholders have approved a groundbreaking $1 trillion pay package for CEO Elon Musk, setting the stage for him to potentially become the world’s first trillionaire. The ambitious 12-step plan requires Musk to elevate Tesla’s market valuation from $1.4 trillion to $8.5 trillion while achieving other significant milestones, such as selling 1 million humanoid robots and 10 million subscriptions to Tesla’s self-driving software. This decision comes just days after New Yorkers elected Zohran Mamdani, a progressive candidate advocating for higher taxes on the wealthy to fund social programs, highlighting the stark contrast in perspectives on wealth distribution in America. Musk’s supporters, including President Donald Trump, view his financial success as a model to emulate, while critics argue that such concentrated wealth exacerbates economic inequality. The Florida State Board of Administration defended the plan, citing Tesla’s transformation from near bankruptcy to a global leader in electric vehicles and clean energy. However, public pension fund officials in New York and California opposed the package, warning of excessive corporate power. Musk, who owns 15% of Tesla’s stock, could see his control grow to nearly 29% if he meets the plan’s targets. Meanwhile, Norway’s sovereign wealth fund voted against the proposal, citing concerns about dilution and key person risk. The approval of Musk’s pay package underscores the deepening divide in American business and politics, with progressives like Mamdani pushing for wealth redistribution and billionaires like Musk championing unfettered capitalism. The plan also reignites debates about executive compensation and corporate governance, as Tesla’s board insists it is designed to drive innovation and growth.
Musk’s $1 trillion pay package creates a split screen on wealth in America
