By HUGO DUNCAN
Elon Musk looks set to become the world’s first trillionaire after clinching the largest pay deal in corporate history.
The tycoon, already the richest man on earth with a fortune of £350billion, scored a decisive victory when shareholders approved a package that could hand him $1trillion (£760billion).
As the result of the vote was announced at the company’s factory in Austin, Texas, shareholders in the room chanted: ‘Elon, Elon, Elon.’
Mr Musk, 54, bounded onto the stage accompanied by dancing robots to thank investors for their backing as he seeks to turn the electric car giant into an artificial intelligence (AI) and robotics juggernaut.
‘I super appreciate it,’ he said. 'Fantastic group of shareholders.’
He went on to outline his vision for an AI-inspired future of self-driving cars and a ‘robot army’ that can perform cutting-edge surgery and even ‘eliminate poverty’.
Elon Musk clinches largest pay deal in corporate history
The deal has proved hugely controversial, however, attracting criticism from the Pope and as well as some shareholders including Norway’s sovereign wealth fund.
But amid fears he could walk away from Tesla if the deal was rejected, 75 per cent of shareholders who voted backed it.
Mr Musk had last month branded two advisory groups opposing the package ‘corporate terrorists’.
Experts pointed out that Tesla could be worth a lot less than it currently is without Mr Musk in charge – giving investors a strong incentive to support the pay.
‘What is Tesla worth without Musk or even a part-time Musk? Much less than it is worth now,’ said Brian Quinn, a professor at Boston College Law School.
But Andrew Speke, a spokesman for the High Pay Centre, described it as ‘a truly bleak milestone’.
He said: ‘While we can’t blame all of the world’s ills on the existence of the super-rich, awarding so much to one individual reflects a model of capitalism that feels increasingly dystopian — massively rewarding a tiny few while many people’s living standards continue to decline.
‘The rise of left-economic populism on both sides of the Atlantic shows that discontent with this model of capitalism will only grow. Those who believe in capitalist economics should be the first to call out this excess and argue for a fairer model if they want the system to survive.’
To secure the maximum payout – which will be in the form of Tesla shares – Mr Musk must increase Tesla’s value from $1.4trillion (£1.1trillion) today to $8.5trillion (£6.5trillion) over the next decade.
Tesla must also deliver 20million vehicles, have one million robotaxis on the road, and sell one million robots while raking in more than £300billion in profit.
The deal would see Mr Musk increase his stake in Tesla from 13 per cent to over 25 per cent. But in that time, he will receive no salary or bonus.
Mr Musk said Tesla’s two-legged humanoid Optimus robots will become ‘the biggest product of all time’ and make the company a fortune.
‘I think there could be tens of billions of Optimus robots out there,’ he said. ‘I guess what I’m saying is, hang on to your Tesla stock.’
Mr Musk insisted the vote was not about the money but about gaining a bigger stake in Tesla and more power over the company and its ‘robot army’.
With shareholders cheering him on at the glitzy event, he said: ‘I’m going to say a bunch of things that probably I shouldn’t say, but that’s what keeps it interesting. Other shareholder meetings are snooze fests, but ours are bangers, this is sick, we’ve got a cyberpunk nightclub here with real robots.’
The vote was a resounding victory for Mr Musk following a tumultuous year, proving investors still have faith in him as Tesla struggles amid competition from Chinese rivals and a backlash over his on-off bromance with Donald Trump and foray into politics.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: ‘A $1trillion pay package is outrageous – but so are the Everest-sized milestones Tesla must conquer to unlock it.
‘For shareholders, it’s the ultimate alignment: Musk earns nothing unless he creates staggering value, and if he pulls off the unimaginable, investors will be sitting atop an $8.5trillion titan.
‘Investors have spoken. The Musk premium is alive and well, and this vote should help underpin Tesla’s valuation as we head into a pivotal year. The drama, of course, is far from over.’