SpaceX Acquisition of Tesla Could Trigger Musk Stock Payout

Elon Musk could potentially secure hundreds of billions of dollars in stock by merging Tesla Inc. into SpaceX. According to an analysis of the 2025 CEO Performance Award Agreement, a specific clause stipulates that half of the performance targets—including vehicle deliveries and robotaxi deployment—would be considered accomplished if Tesla is acquired.

Under this scenario, the payout would be determined by Tesla's market capitalization immediately before closing or the final deal price. An acquisition valued at $8.5 trillion would grant Musk the full 424 million shares associated with the award. This move would effectively allow Musk to bypass Tesla's operational targets, shifting the primary factor for the maximum share award to the overall deal value.

While Musk maintains sweeping control over SpaceX to influence the terms and valuation of such a deal, he does not have absolute control over the approval process. Any merger would require the approval of Tesla shareholders, who hold more than 80% of the vote and could challenge the transaction in court. Tesla Chair Robyn Denholm stated the equity award was designed to align shareholder value with incentives.