Investor Ross Gerber has weighed in on a clause inside Elon Musk's Tesla Inc. compensation package that could grant him a windfall worth hundreds of billions of dollars if the EV giant merges with or is taken over by an enterprise like Space Exploration Technologies Corp. According to a report by The Wall Street Journal, the pay package approved by investors back in November that could potentially result in Musk securing a trillion-dollar payday is now reportedly topping out at $824 billion, due to the number of outstanding Tesla shares rising since the package was approved. While the pay package is tied to performance-related milestones, like Full Self-Driving subscriptions, vehicle deliveries, Robotaxis, Optimus Robot and more, half of the operational targets would effectively be treated as satisfied in the event of a takeover or merger, leaving the market-value targets to determine the award. The conditions also stipulate that the award would be based on the merger or acquisition's deal price or Tesla's market value just before the deal, whichever remains higher, and a potential $8.5 trillion acquisition of Tesla could help deliver the pay package's full 424 million shares to Musk. On Tuesday, the Gerber Kawasaki co-founder took to X, quoting a post from The Wall Street Journal, and said, "Fantastical abundance!"
Tesla IncArticle discusses Musk's compensation package and potential merger, affecting Tesla's valuation and governance.
