Tesla and SpaceX CEO Elon Musk will arrive at the US Presidential Election Donald Trump’s inauguration ceremony at the US Capitol Rotunda in Washington, DC on January 20, 2025.
Chip somodevilla | Via Reuters
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Tesla According to a representative filed last week, CEO Elon Musk needs to be encouraged with a record-breaking salary package to compete with his private companies.
This submission outlines a share award worth $1 trillion if everything is rewarded. Tesla also orders most of his attention unless Tesla pays him more, as other companies in Musk (mainly SpaceX and Xai Holdings) make up a large part of his wealth.
“Most of Musk’s wealth now comes from other business ventures other than Tesla, and today he has more attractive options than ever,” Proxy said. A salary package of up to 423 million shares is required to prevent Musk from “prioritizing other ventures.”
Of course, it’s up to the shareholders to approve the package. However, the proxy highlights the burgeoning ratings of mask private companies and the competing profits of Xai, SpaceX and Tesla.
Until last year, much of Musk’s wealth came from his Tesla stock. The Bloomberg Billionaire Index pegs Musk’s wealth at around $385 billion, but Forbes estimates his wealth is $436 billion. This difference is likely tied to his 2018 pay package, still in conflict, and is valued between $60 billion and $100 billion. Musk’s net worth is close to $436 billion if his compensation plan is restored and/or he receives the provisional comp package proposed in the proxy.
Today, less than half of that property comes from Tesla stocks.
Based on the company’s current ownership, Musk’s Tesla shares are worth approximately $140 billion. Musk claims that at least 25% of Tesla’s voting control is needed to prevent the company from taking over as it develops highly sensitive and powerful artificial intelligence technologies and robots.
SpaceX and Xai have increased voting control with a 42% shares in SpaceX and a majority stake in Xai. SpaceX plans to sell insider stocks, which is reportedly valued at $400 billion last year. At a $400 billion valuation, Musk’s stock is worth around $170 billion. This exceeds the value of his current Tesla stock.
Xai’s valuation grew even faster, from $80 billion at the start of the year to a potential $200 billion in a new funding round. Musk owns more than 50% of the company, well over $100 billion.
Together, Xai and SpaceX’s mask interests are almost twice as valuable as his Tesla shares. His stake in Neuralink (worth around $9 billion) and his other company, his private company, are staving off his Tesla wealth.
Of course, that may not be long. Musk’s Tesla shares are worth more than $2 trillion if he is awarded 423.7 million restricted shares in his new 2025 compensation plan, and if Tesla reaches its target valuation of $8.5 trillion.
