Elon Musk will become the world’s first trillionaire: Tesla approves $1 trillion package; Now focus on robots, claim to eradicate poverty through it

Shareholders of Tesla Company passed CEO Elon Musk’s $1 trillion pay package on November 6. This package can now make him the world’s first trillionaire. More than 75% of shareholders said yes in the voting, which did not include Musk’s 15% shares.

After the pay package was approved, Musk thanked the shareholders. He said, “This is not a new chapter of Tesla, but a new book. People talk about ending poverty and good medical care, but there is only one way – Optimus robot. It sounds like sci-fi, but it is real.”

Optimus Robot will be a bigger product than a cellphone

Talking about robots, Musk said, “This will be the biggest product, bigger than cell phones… Every person will want their own personal robot.” He claimed that robots will replace surgeons, end global poverty and reshape the economy.

Optimus is Tesla’s humanoid robot, announced in 2021 and the first prototype shown in 2022. Its purpose is to do factory work, domestic work or those jobs which humans do not want to do. Tesla’s focus is now on robots and autonomous cars.

Pay package of 1 trillion dollars will be available only after fulfilling three conditions

This $1 trillion compensation agreement is a 10-year plan, in which Musk will get stock options in 12 tranches. To get full payment, certain benchmarks will have to be met.

The current value of Tesla is 1.40 trillion dollars i.e. about Rs 124 lakh crore. The package calls for 466% growth, surpassing Nvidia’s record valuation of $5 trillion.

Musk’s holding in the company may increase to 29%

Musk is already the richest person in the world, and if this plan is passed, his holding could increase from 15% to 29%. Company Chairman Robin Denholm said, “This plan is designed to supercharge Tesla, not an easy target.”

Shift from EV, keeping an eye on robotaxi and humanoid robots

Tesla is now focusing on self-driving cars, robotaxi and humanoid robots more than EVs. Musk said in the shareholder meeting that robots are more important than cars. Full self-driving (FSD) software still requires driver attention.

The robots are currently in development and are not being sold, so Musk will not receive shares if targets are missed. Despite company challenges, this package is being seen as motivation.

Elon Musk and Tesla Optimus dance after the decisions of the Tesla shareholders meeting.

Musk wants strong influence from 1 trillion dollar package

Musk says that the package is not for wealth, but for voting control so that he can keep strong influence but can also be fired if necessary.

• Recently, in the Q3 earnings call, investors asked Musk about the current challenges in bringing the Optimus robot to market. Musk said that Tesla’s manufacturing and tech strength is tremendous, but the basic concern is about voting control in Tesla.
• He said – Voting control should be so much that I get strong influence, but not so much that if I go crazy, I cannot be fired. If I don’t have strong influence, I don’t feel comfortable creating this robot army.

Musk’s supporters said – this is motivation, opponents said – wealth concentration

Tesla’s board and many investors, such as Florida’s Public Pension Fund, are calling this plan motivating for Musk. The fund said in the filing…

• Those who call the plan ‘too big’ are ignoring Tesla’s ambitions. The company has already achieved global leadership in EV and clean energy through such incentives.
• “Investors don’t understand how much they and their clients stand to gain if Musk achieves his goals,” Cathie Wood, CEO of Ark Invest, wrote on X.

But pension funds in New York and California objected. Norway Sovereign Wealth Fund said, “Musk’s value creation is appreciated, but the size, dilution and key person risk of the award are a matter of concern.” Pope Leo XIV said – Musk’s compensation is a symptom of the gap between working people and the rich. The median salary of Tesla workers was $ 57,000 in 2024.

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