Elon Musk is already the world’s richest person, but he could become the world’s first trillionaire if his company Tesla hits a series of targets set out in a pay scheme disclosed by the electric car company.

Austin

Tesla's board has unveiled a substantial new pay package for CEO Elon Musk, which could potentially make him the world's first trillionaire. The proposed compensation is tied to Tesla achieving significant growth milestones, requiring the company's value to increase eightfold for Musk to receive the full package. 

The move comes as Musk divides his time between Tesla and other roles, including work with the U.S. government. Industry analysts note that while the package is unprecedented, it is structured around challenging targets that would benefit all shareholders if met. The package is also seen as a way to ensure Musk remains focused on Tesla, which faces increasing competition from companies like BYD.

Tesla pay package offer could make Elon Musk world's first trillionaire

He's already the world's richest person. But Elon Musk could soon become the world's first trillionaire. The Tesla board is unveiling a massive new pay package for its CEO that would keep his focus on the electronic vehicle maker. Earlier this year Musk spent much of his time working in the Department of Government Efficiency in the Trump administration. The Tesla package would grant Musk additional stock if the company grows beyond its present value. Musk's current net worth is more than 400 billion dollars. For more analysis on all of this we have reached Alex Roy. He is the founder and co-host of the auto part of me autonomous cast a transportation tech podcast. And he is also a general partner at N.I.V.C. tech investment company. So thank you so much for joining us Alex. Thank you so much for having me. And sorry about that. The the name of your podcast there it's spelt a little bit differently isn't it. But I get the take on it. Let's begin with your reaction when you heard Tesla's pay package could possibly make Elon Musk a trillionaire. What did you think. I'm sure that even the biggest Tesla fans would say it's an eye watering an absurd amount of money. But set against the metrics the milestones required for him to you know get that pay package. I think it actually might make some sense. You know Tesla is the greatest value one of the greatest value creators in modern history. And you know every Tesla shareholder gains if he meets these milestones. So you know I personally I'm not opposed to it. The I mean the case against it would be that in almost any rational situation a CEO would be compensated based on cash profit. And in this case it's a set of other metrics which are not nearly as easily measured. So. So am I wrong in thinking I I'm I feel like I have seen graphs that have shown Tesla stock going in the wrong direction. If you're a stockholder. If you're a long term shareholder you're probably very happy. But you know a lot of people have bought Tesla at precisely the wrong time because you know Tesla's stock valuation is not tied to normal metrics. At least 25 percent of the stock price I think reflects what I call a narrative command. Not what's necessarily happening today or even sales but what people believe at any given point in time is going to happen next year or in five years. So the promise of the promise of self-driving driverless full self-driving the promise of delivering another car platform. People believe these things and buy based on these beliefs rather than the fundamentals. Therefore one might say Tesla despite stock price drops is a great success story because Elon Musk has mastered the art of narrative command and it's served him better than almost anyone else in the automotive sector. We should say for this to happen must needs to boost Tesla's value eightfold I think in order to receive this pay package. That's obviously an enormous. I'm not trying to count them out but it's a huge number. It hits the number of this ambitious targets over the next decade. If this is in other words if this does play out what does it mean for other competing companies. Does this become some kind of a standard. I don't think that any other certainly Western car company me and any other company on earth will be ever could possibly be measured against Tesla using the metrics that they value because there's really only one of the company on earth that could compete with Tesla and that's B.Y.D. and so it is a very dangerous situation for any other car company in the West because even the strongest Western car companies don't really have a product mix that can compete with Tesla or B.Y.D. and as such. And I've been critical of Musk in the past. We're very lucky that Tesla as a company and Elon Musk as a leader exist in the West because without him the Western car companies would probably have no ability to compete with the Chinese at all. Listen you're not the only one who has especially in recent months been critical of Elon Musk. He has met a fair share of criticism. Large largely sort of linked to the work that he has done with the U.S. government. I think it's fair to say. Is it. I mean this is maybe me just reading between the lines here. But is this Tesla. Is this offer being made to him. Maybe a way of trying to redirect his communications to deal more focused in on Tesla in the future of that company. But of course look any any rational shareholder would want Elon to spend as much time as possible on Tesla because without him it's unclear who could manage that company right or wrong as well as he has. And you know his distractions have not been productive for Tesla sales. You know there you know there's no Gwynne Shotwell who runs SpaceX. There's no one like her that we are aware of waiting in the wings of Tesla. The company needs him. And frankly I have no objection to the pay package because I want Tesla to succeed. Competition is good. And the other Western car companies will be better for Tesla being a strong player and inspiring them. Alex Roy founder and co-host of the Atomic last podcast and general partner at NBC. Alex it's great to speak with you. Thank you. Thank you.

Violence breaks out as police move in on 1,500 people protesting against the government’s proscription of an anti-genocide group.

London

Mass arrests at Palestine Action rally outside UK Parliament

Chicago officials agree that a federal crackdown on immigration is imminent. Saturday kicked off a week-long celebration of Mexican Independence Day.

Chicago

Chicago officials agree a federal immigration crackdown is imminent

Wall Street took hits on the market after hiring slumped in August. The economy added 22,000 jobs, far below expectations, fueling fresh concerns about a slowdown.

Trump hits the links amid economic slowdown concerns

The United States is not talking about regime change in Venezuela, President Donald Trump said on Friday, as the United States ordered an additional 10 stealth fighter jets to a military buildup in the Caribbean.

Caracas

Trump plays down regime change in Venezuela amid military buildup

The Israeli military told Palestinians in Gaza City to leave for the south before bombing a high-rise tower as its forces advance deeper into the enclave's largest urban area.

Tel Aviv-Yafo

Middle East Conflict

Israel tells Palestinians to leave as it pushes into Gaza City

US President Donald Trump's threats to deploy National Guard troops to Chicago, Baltimore, and New Orleans have ignited resistance from local leaders and residents, who argue the deployments serve as intimidation rather than crime prevention.

Trump to send National Guard to more cities

The White House said the U.S. is sending 10 F-35 fighter jets to Puerto Rico. It comes as the Defense Department confirmed that two armed Venezuelan F-16 fighter jets flew over a U.S. Navy ship in the region on Thursday.

Washington

U.S. to send F-35 fighter jets to Puerto Rico amid Venezuela tensions

President Trump signed an executive order to start the process of renaming the Department of Defense to the Department of War, restoring a name the agency last held in the late 1940s.

Trump orders Defense Department be renamed as Department of War

Xi and Kim, along with top officials from their countries, met on Thursday at Beijing’s Great Hall of the People a day after Kim attended a Chinese military parade alongside other foreign leaders including Russian President Vladimir Putin.

Beijing

China’s Xi and North Korea’s Kim meet in Beijing, pledge deeper ties

Two Venezuelan fighter jets flew over the USS Jason Dunham, multiple Defense Department officials confirm, calling the action a "show of force." CBS News' Willie James Inman and Charlie D'Agata report.

Two Venezuelan fighter jets fly over U.S. Navy ship, officials confirm

A massive Immigration and Customs Enforcement raid at a Hyundai manufacturing site in Georgia led to hundreds of immigrants being detained for apparently living and working in the U.S. illegally.

Savannah

Massive ICE raid at Hyundai site leaves 475 detained in Georgia

Israel targeted a high-rise building in Gaza City, the military said in a statement. As the world braces for Israel's major military operation to seize Gaza's largest city, Hamas released a video purportedly showing two hostages, including one calling on Israel not to carry out its planned Gaza City offensive.

Jerusalem

Israel strikes Gaza City high-rise building, Hamas releases another hostage video

US Secretary of State Marco Rubio is wrapping up a two-day trip to Latin America. It comes as the countries in the region watch the Trump administration step up military activity in the area, to combat drug trafficking and illegal migration.

Quito

U.S. mulls military base in Ecuador

A powerful aftershock struck eastern Afghanistan late on Thursday night. More than 2,200 people have already died the quake. Rescue crews are still searching remote villages, but rescue efforts are hampered by rough terrain and aftershocks. The World Food Programme says food stocks are running low and could be exhausted within weeks.

Kabul

Afghanistan quake death toll passes 2200 as food supplies run low

What happens in Ukraine once the war with Russia is over? France tells President Volodymyr Zelenskyy that 26 nations are now ready to offer security guarantees, including the possible deployment of foreign troops as part of a post-war peace arrangement.

Paris

Ukraine Invasion

Ukraine's European allies agree security guarantees

CEOs from some of the nation's biggest tech companies sat down for a dinner with President Trump on Thursday. Among those present were Tim Cook, Sam Altman, Bill Gates and Mark Zuckerberg.

Trump hosts Mark Zuckerberg, Bill Gates and other tech CEOs

U.S. President Donald Trump had a call with Ukrainian President Volodymyr Zelenskyy and other European leaders Thursday about Russia's war in Ukraine. CBS News White House reporter Olivia Rinaldi has more.

Trump speaks with Zelenskyy, pushes Europe to stop buying Russian oil

"With infinite sorrow, the Armani Group announces the passing of its creator, founder, and tireless driving force: Giorgio Armani," the fashion house said in a statement on Thursday.

Milan

'King' of Italian fashion Giorgio Armani dies at 91

A federal judge on Wednesday ruled that U.S. President Donald Trump's administration unlawfully terminated about $2.2 billion in grants awarded to Harvard University and can no longer cut off research funding to the prestigious Ivy League school.

Cambridge

Trump admin unlawfully cut Harvard's funding, U.S. judge rules

Russian President Vladimir Putin has delivered a statement after meeting leaders on the sidelines of the military event in Beijing. He spoke about Russian security interests, and the Ukraine war.

Moscow

Putin wraps China visit with gas deal, calls for Ukraine peace talks

Hope is fading of finding survivors in the rubble of homes devastated by a powerful earthquake in eastern Afghanistan over the weekend that killed more than 1,400 people, as emergency services struggle to reach remote villages.

Kunar

Hope fades for finding survivors after Afghan quake kills over 1400

Portuguese authorities say at least 15 people died after a streetcar derailed and crashed in the capital of Lisbon. CBS News senior foreign correspondent Imtiaz Tyab has the latest.

Lisbon

Iconic streetcar in Portugal's Lisbon derails, 15 killed

Democratic Rep. Ro Khanna, along with Republican Reps. Thomas Massie and Marjorie Taylor Greene, held a news conference on Wednesday with survivors of Jeffrey Epstein and Ghislaine Maxwell's sexual abuse. CBS News' Caitlin Huey-Burns has more details.

Epstein survivors add voices to calls for transparency

Israel's central intelligence agency, Shin Bet, said that it thwarted an assassination plot by Hamas against the country's right-wing minister of national security, Itamar Ben-Gvir, Reuters reports.

Israel reportedly thwarted plot to assassinate right-wing minister

In California on Tuesday, a jury took less than an hour to clear Cardi B of assault allegations made in a $24 million civil lawsuit. A security guard claimed the rap star attacked her in 2018.

Los Angeles

Cardi B wins civil case against security guard

Secretary of State Marco Rubio said on Tuesday that the U.S. military struck a boat apparently carrying drugs from Venezuela. CBS News' Charlie D'Agata has the latest details.

Trump says U.S. struck drug-carrying boat from Venezuela

China's Xi Jinping welcomed Russian President Vladimir Putin and North Korea's Kim Jong Un, along with other world leaders, for a huge military parade showing off new technology.

Vladimir Putin, Kim Jong Un attend China's massive military parade

A Republican-led U.S. House of Representatives committee said it released more than 33,000 pages of files on the disgraced financier and convicted sex offender Jeffrey Epstein, as party leadership looked to end a push by a bipartisan pair of lawmakers to force a vote on the matter.

Breakdown