Elon Musk's Potential $1 Trillion Payout Tied to Rumored SpaceX and Tesla Merger

A potential merger between Tesla Inc. and SpaceX could reportedly trigger Elon Musk‘s $1 trillion Tesla pay package without the EV giant having to reach any operational milestones.

$1 Trillion Package Kicks In With Merger?

The package features operational milestones such as:

  • 10 million active FSD subscriptions
  • 1 million Tesla robotaxis on the road
  • Tesla delivering over 1 million robots by 2035
    However, in the event of a “Change in Control”, these milestones would be voided, and only the market capitalization would be considered for the award.

Change in Control Clause

The change in control clause could point towards a potential merger or buyout of the EV giant, which could take place as talks of a possible merger with SpaceX have been in the headlines. This clause stipulates that “in the event of a Change in Control, the Operational Milestones shall be disregarded,” and that only the market capitalization would be considered for the award.

SpaceX IPO

The news comes as SpaceX’s IPO, set to take place in the coming weeks, could trigger automatic investment from retirement funds, including 401(k) accounts. The automatic buying would happen as index funds investing in indices like the S&P 500 and the Nasdaq 100 would be buying into the IPO amid rule changes adopted by both indices.

SpaceX IPO Details

  • SpaceX’s IPO could be valued at $1.8 trillion, although this figure has been denied by Musk
  • The IPO could trigger automatic investment from retirement funds, including 401(k) accounts
  • Index funds investing in indices like the S&P 500 and the Nasdaq 100 would be buying into the IPO

Price Action

Tesla shares were down 1.37% to $429.81 during premarket trading on Monday. According to rankings, Tesla scores well on the Growth and Quality metric, while also providing a favorable price trend in the Short, Medium, and Long term.

For more information on the Future Of Mobility, check out the following articles:

  • Top Analyst Predicts Initial ‘Pop’ For SpaceX Investors Following IPO
  • Trump Criticized Canada’s China EV Deal—Elon Musk’s Tesla Could Be Among Its Biggest Winners