Bernie Sanders Slams Elon Musk's $1 Trillion Tesla Pay Deal: 'Insanity. Billionaire Tax Now'
Sen. Bernie Sanders (I-VT) called for immediate billionaire taxation on Saturday after criticizing Elon Musk‘s shareholder-approved $1 trillion compensation package at Tesla Inc. (NASDAQ:TSLA), comparing it to the combined salaries of millions of American workers.
Pay Package Comparison
Sanders stated on X that Musk’s 10-year compensation exceeds the combined pay of every elementary school teacher, cashier, restaurant cook, farmworker, and bartender in America.
The senator concluded his post with “Insanity. Billionaire tax now.”
California has proposed the 2026 Billionaire Tax Act, which would impose a 5% tax on the net worth of the state's wealthiest residents.
Shareholder Approval Details
The first pay package of its kind in global corporate history is designed to motivate Musk's performance, setting high targets he must meet to receive any compensation.
Tesla shareholders approved the pay package in November with over 75% support.
See Also: Trump Allies Voice Support As Elon Musk’s X Slapped With $140 Million EU Fine— ‘Impose Sanctions…’
The compensation consists of 12 tranches tied to market capitalization milestones starting at $2 trillion, with the final payout requiring Tesla to reach $8.5 trillion in value.
Musk has ten years to unlock each grant. He can receive 35.312 million shares, adding roughly 1% to his current 16% stake, by achieving one new market cap milestone and one operational target in any order.
Legislative Response
Sanders has been a very vocal critic of Musk's new compensation package.
The Senator previously described the package as an “oligarchy” and “grossly immoral,” saying Musk receives $1 trillion while Trump gives him tax breaks, even as low-income children face cuts to Supplemental Nutrition Assistance Program (SNAP) benefits.
Rep. Dan Goldman has stated Musk paid a 3.3% effective tax rate by taking tax-free loans against stock, using the “buy, borrow, die” strategy.
Pope Leo XIV has also voiced concerns about income inequality, criticizing CEO pay reaching 600 times that of worker wages, similar to Sanders' comparison of Musk's package to worker salaries.
Stock Performance
Tesla stock has gained 23.14% over the past year and 59.82% over the past six months.
With a market capitalization of $1.51 trillion, TSLA shares have an annual range of $214.25 to $488.54.
Benzinga's Edge Stock Rankings indicates TSLA stock has a positive price trend across all time frames. Here is how the stock fares on other parameters.
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Photo courtesy: Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.