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Elon Musk could become world’s first trillionaire under new Tesla pay deal
Elon Musk could become the world’s first trillionaire under a new proposed payment package at Tesla – if the chief executive hits a series of ambitious targets across the next decade.
Already the world’s richest man with a net worth of $378bn (£280bn), the South African-born entrepreneur could be handed a deal worth more than $1 trillion (£740bn) if shareholders vote through board proposals.
Based on current market capitalisation values, it would make Mr Musk worth more than all but the six or seven biggest public companies on the planet.
Achieving the terms of the deal would almost certainly make Tesla the biggest business in the world, as one of the terms included is to grow the company’s market value to $8.5 trillion (£6.3 trillion) from the $1.1 trillion figure it stands at today. Chipmaker Nvidia is presently the only firm bigger than $4 trillion.
The new incentive plan from Tesla was shown in a filing to the US Securities and Exchange Commission on Friday. In it, Mr Musk could increase his stake in the company to at least 25 per cent.
“We are laying the foundation for our next decade of growth by rolling out our ambitious vision and securing our leadership to deliver against that vision,” read part of the filing, later adding: “Retaining and incentivising Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history.”
Tesla’s filing goes on to suggest he could also have a say in his eventual successor as CEO: “While we believe Elon is the only person capable of leading Tesla at this critical inflection point, changing the world is neither an overnight process nor the work of a single person.”
The company’s share price, which rose 2.5 per cent in pre-market trading after the filing was announced, is down 16 per cent across 2025 as a whole as the EV maker struggles with industry competition, pricing and brand image.
However, in future it expects to generate far more revenue through AI and other product avenues – the progression of which is linked to Mr Musk’s prospective pay package, such as getting 1 million robotaxis on the road and 1 million AI humanoid robots in production.
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The shares would be dealt out in tranches according to milestones being hit, including the company’s financials.
Not everyone is immediately convinced however, with some market analysts questioning the likelihood of reaching the targets – as well as whether Tesla’s performance under Mr Musk of late suggests he should even be the one to steer the company into that future.
“One minute Tesla’s board is wondering if Elon Musk is a liability to the company given his outspoken views and political distractions, the next they’re effectively saying ‘pick a number, any number’ to lock him in for as long as possible,” said Dan Coatsworth, investment analyst at AJ Bell.
“A $1 trillion pay package beggars belief. Is one person worth that much? Musk is a visionary, has endless energy, and the confidence to succeed – all qualities required in leadership.
“But he also presides over a company that has lost its edge, is being overtaken by rivals, and whose brand has been tarnished by Musk’s actions outside of Tesla. Surely Musk should be fighting for his job, not Tesla’s board fighting to keep him?
“Tesla is a public company, and shareholders will ultimately decide if he deserves a $1 trillion pay deal.
“The bigger question is whether this proposal sets a new precedent and boardrooms across America will think it’s OK to add a zero or two onto the end of current remuneration packages. It all seems a tad excessive and a symptom of poor corporate governance.”
Very early in the new pay plan, Tesla would have to reach a market valuation of $2 trillion (£1.48 trillion) and achieve 20 million vehicle deliveries. Tesla delivered fewer than two million vehicles in 2024.
Mr Musk needs to remain with Tesla for at least seven and a half years to cash out on any stock, and 10 years to earn the full amount.
He would also receive more voting power over Tesla under the proposed plan.
The EV company is set to hold its annual shareholders meeting on 6 November.
Sales have fallen precipitously in Europe and plunged 40 per cent in July in the 27 European Union countries compared with the year earlier, even as sales overall of electric vehicles soared, according to the European Automobile Manufacturers’ Association.
Meanwhile, sales of Chinese rival BYD continued to climb fast, grabbing 1.1 per cent market share of all car sales in the month versus Tesla’s 0.7 per cent.
Investors have grown increasingly worried about the trajectory of the company after Mr Musk had spent so much time in Washington this year, becoming one of the most prominent officials in the Trump administration in its bid to slash the size of the US government.
Mr Musk said recently that he needed more shares and control so he could not be ousted by shareholder activists.
Additional reporting by Associated Press
Kevin PeacheyCost of living correspondent
Getty ImagesThe Bank of England has cut interest rates from 4% to 3.75%, the lowest level since February 2023.
Analysts are divided about whether the Bank will cut again when it next meets in February.
Interest rates affect mortgage, credit card and savings rates for millions of people.
What are interest rates and why do they change?
An interest rate tells you how much it costs to borrow money, or the reward for saving it.
The Bank of England’s base rate is what it charges other banks and building societies to borrow money, which influences what they charge their own customers for mortgages as well as the interest rate they pay on savings.
The Bank moves interest rates up and down in order to keep UK inflation – the rate at which prices are increasing – at or near 2%.
When inflation is above that target, the Bank typically puts rates up. The idea is that this encourages people to spend less, reducing demand for goods and services and limiting price rises.
What has been happening to UK interest rates and inflation?
The main inflation measure, CPI, has dropped significantly since the high of 11.1% recorded in October 2022.
However, it was 3.4% in the year to December 2025 – up from 3.2% in November, and slightly higher than analysts had expected.
The Office for National Statistics (ONS) – which measures inflation – said the increase was driven by higher tobacco prices and the cost of airfares over the Christmas and New Year period.
The Bank of England’s base rate reached a recent high of 5.25% in 2023. It remained at that level until August 2024, when the Bank started cutting.
Five cuts brought rates down to 4%, before the Bank held rates at its meetings in September and November 2025 before the December cut.
Are interest rates expected to fall again?
Most analysts had expected the December cut, but the vote among members of the nine-member monetary policy committee (MPC) was divided, with only five in favour.
The Bank said rates were likely to continue dropping in the future, but warned decisions on further cuts in 2026 would be contested.
“We still think rates are on a gradual path downward but with every cut we make, how much further we go becomes a closer call,” said the Bank’s governor Andrew Bailey.
If inflation continues to rise – or just fails to fall – further rate cuts are less likely.
Mr Bailey has also repeatedly warned about the continuing impact of US tariffs, and political uncertainty around the world.
The next interest rate decision is on Thursday 5 February.
How do interest rate cuts affect mortgages, loans and savings rates?
Getty ImagesMortgages
Just under a third of households have a mortgage, according to the government’s English Housing Survey.
About 500,000 homeowners have a mortgage that “tracks” the Bank of England’s rate. A 0.25 percentage point cut is likely to mean a reduction of £29 in the monthly repayments for the average outstanding loan.
For the additional 500,000 homeowners on standard variable (SVR) rates – assuming their lender passed on the benchmark rate cut – there would typically be a £14 a month fall in monthly payments for the average outstanding loan.
But the vast majority of mortgage customers have fixed-rate deals. While their monthly payments aren’t immediately affected by a rate change, future deals are.
Mortgage rates have been falling recently, partly owing to the expectation the Bank would cut rates in December.
As of 21 January, the average two-year fixed residential mortgage rate was 4.77%, according to financial information company Moneyfacts. A five-year rate was 4.87%.
The average two-year tracker rate was 4.41%.
About 800,000 fixed-rate mortgages with an interest rate of 3% or below are expected to expire every year, on average, until the end of 2027. Borrowing costs for customers coming off those deals are expected to rise sharply.
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You can see how your mortgage may be affected by future interest rate changes by using our calculator:
Credit cards and loans
Bank of England interest rates also influence the amount charged on credit cards, bank loans and car loans.
Lenders can decide to reduce their own interest rates if Bank cuts make borrowing costs cheaper.
However, this tends to happen very slowly.
Getty ImagesSavings
The Bank base rate also affects how much savers earn on their money.
A falling base rate is likely to mean a reduction in the returns offered to savers by banks and building societies.
The current average rate for an easy access savings account is 2.45%, according to Moneyfacts.
Any further cut in rates could particularly affect those who rely on the interest from their savings to top up their income.
What is happening to interest rates in other countries?
In recent years, the UK has had one of the highest interest rates in the G7 – the group representing the world’s seven largest so-called “advanced” economies.
In June 2024, the European Central Bank (ECB) started to cut its main interest rate for the eurozone from an all-time high of 4%.
At its meeting in June 2025 the ECB cut rates by 0.25 percentage points to 2% where they have remained.
The US central bank – the Federal Reserve – has cut interest rates three times since September 2025, taking them to the current range of 3.5% to 3.75%, the lowest since 2022.
President Trump had repeatedly attacked the Fed for not cutting earlier.
Inflation has risen to 3.4% in the year to December, driven by higher tobacco prices and airfares, according to official figures.
The increase in average prices across the UK economy – the first in five months – was just above expectations, with many economists predicting only a slight uptick to 3.3%.
The cost of airfares was a contributor “likely because of the timing of return flights over the Christmas and New Year period”, the Office for National Statistics (ONS) said. It also reflected an increase in tobacco duty introduced in late November.
It is the last set of monthly inflation figures released before the Bank of England’s decision on interest rates in February.
In addition to tobacco and transport prices, “rising food costs, particularly for bread and cereals, were also an upward driver,” said ONS chief economist Grant Fitzner.
“These were partially offset by a fall in rents inflation and lower prices for a range of recreational and cultural purchases.”
In response to the figures, Chancellor Rachel Reeves said her priority was cutting the cost of living, citing measures in her November Budget including a freeze to rail fares and prescription charges.
“Money off bills and into the pockets of working people is my choice.
“There’s more to do, but this is the year that Britain turns a corner,” Reeves said.
Inflation in the UK is a measure of the Consumer Prices Index, which is a virtual basket of hundreds of everyday goods and services selected by the ONS that includes things like bread, fruit, furniture and different items of clothing.
The prices of these items are tracked by the ONS over the previous 12 months, and the basket is regularly updated to reflect shopping trends.
MUMBAI: AU Small Finance Bank, which has received RBI nod to convert into a commercial bank, reported a net profit of Rs 667.66 crore for the December 2025 quarter, up 26.3% from Rs 528.45 crore in the corresponding quarter last year. The improvement was driven by strong growth in core earnings and a sharp reduction in credit costs, which offset higher operating expenses.Net interest income (NII) rose 15.8% year-on-year to Rs 2,341.27 crore, compared with Rs 2,022.71 crore in the December 2024 quarter. Interest earned increased to Rs 4,727.47 crore from Rs 4,113.48 crore, while interest expended rose to Rs 2,386.20 crore from Rs 2,090.77 crore. On a sequential basis, NII increased 9.2% from Rs 2,144.42 crore in the September 2025 quarter, reflecting improved yields on advances and relatively stable funding costs.During the quarter, the bank also announced a series of board and senior management changes as part of a broader leadership realignment. The board approved the appointment of Phani Shankar as non-executive independent director for a three-year term. It also cleared the appointment of Vivek Tripathi, chief credit officer, as whole-time director, subject to regulatory and shareholder approvals. Uttam Tibrewal, who will complete his current term as whole-time director in April 2026, will continue as deputy CEO, while Divya Sehgal, non-executive non-independent director, resigned after completion of the integration of Fincare Small Finance Bank. V G Kannan is set to complete his second term as independent director in January 2026.Other income increased 17.0% year-on-year to Rs 723.80 crore from Rs 618.41 crore a year earlier, supporting overall revenue growth. Total income for the quarter rose to Rs 5,451.26 crore, compared with Rs 4,731.89 crore in the corresponding period last year.Operating expenses climbed 28.8% year-on-year to Rs 1,849.75 crore from Rs 1,436.21 crore, driven by higher employee costs and expansion-related spending, including regulatory-linked adjustments. Despite this, operating profit before provisions remained broadly stable at Rs 1,215.31 crore, compared with Rs 1,204.91 crore in the year-ago quarter.Provisions (other than tax) declined 34.0% year-on-year to Rs 331.14 crore from Rs 501.68 crore, reflecting lower credit costs. Tax expense increased to Rs 216.51 crore from Rs 174.78 crore, in line with higher profitability.Asset quality remained stable, with gross NPAs at Rs 2,880.54 crore, compared with Rs 2,335.51 crore a year earlier, while the gross NPA ratio was largely unchanged at 2.30% against 2.31% in the corresponding quarter last year. The bank’s capital position strengthened, with the capital adequacy ratio improving to 19.01% from 18.01%, providing headroom for future growth.
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Are UK interest rates expected to fall again?
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