SpaceX-Tesla Merger Could Trigger Musk's $1 Trillion Pay Without 12 Operating Hurdles
Updated
Updated · Electrek · May 31
SpaceX-Tesla Merger Could Trigger Musk's $1 Trillion Pay Without 12 Operating Hurdles
4 articles · Updated · Electrek · May 31
A Tesla-SpaceX merger could automatically unlock Elon Musk’s $1 trillion stock award because a “change in control” clause would ignore the package’s operational milestones and judge vesting mainly on market capitalization.
The contract says those operating targets are disregarded after a takeover or merger, meaning Tesla would not need to hit goals tied to vehicle sales, robotaxis, bots or profitability for shares to vest.
Tesla’s roughly 400 price-to-earnings multiple could make that shortcut especially potent, since merger speculation or an all-stock deal could lift valuation further and push more of the 12 tranches into payout territory.
The report also points to a planned SpaceX IPO and a Nasdaq rule change allowing listing after 10 days instead of a year, which could funnel index-fund demand into SpaceX before any stock-based combination.
If that happened, the award would dilute existing holders more broadly than Tesla investors alone, potentially spreading the impact to retirement savers through passive funds that would own the merged company.
Will a Tesla-SpaceX merger create a tech giant or just dilute your investment for Musk's personal benefit?
How could a SpaceX IPO let Elon Musk unlock his trillion-dollar bonus without hitting Tesla's performance goals?