Tesla shareholders approve plan to pay Musk nearly $1 trillion

Tesla shareholders have approved a record-breaking bonus package for the company’s founder, Elon Musk, which could total nearly $1 trillion. The unprecedented bonus was approved by 75% of Tesla’s shareholders who voted at the company’s annual general meeting on Thursday, the BBC writes.

The agreement obligates Musk — the world’s richest person — to significantly increase the market value of the electric vehicle company over the coming years and achieve other milestones. If he succeeds, he will be rewarded with hundreds of millions of new Tesla shares.

As CNN notes, the potential payout could make Musk the first trillionaire in history. Earlier in October, he became the first person whose net worth reached $500 billion.

Tesla’s current market value is approximately $1.4 trillion, and Musk is expected to grow it to $8.5 trillion over the next 10 years.

“What we’re about to do is not just a new chapter in Tesla’s future, but an entirely new book,” Musk said at a meeting in Texas. “Other shareholder meetings are boring, but ours is explosive. This is amazing,” he added.

The approved package is designed to keep Musk at Tesla for at least 7.5 years, allowing him to increase his stake in the company from 12% to over 25%.