In Brief
- Trading activity for memecoins surged following Tesla’s board approval of Elon Musk’s $1 trillion pay package.
- Several new tokens, named after Musk and the pay package, were launched on various blockchains, with some seeing significant price increases.
- Some of these new tokens exhibited characteristics of cryptocurrency exit scams, dropping to zero shortly after launch.
- The surge in memecoin activity around Musk’s compensation highlights a recurring pattern where major public events involving prominent figures influence the memecoin market.
- Musk’s compensation package is contingent on Tesla achieving ambitious financial and operational milestones, including significant stock price growth and robot production.
Memecoin Frenzy Follows Musk’s Compensation Approval
Memecoin trading experienced a notable increase on Thursday, coinciding with Tesla’s board members giving the green light to a substantial $1 trillion pay package for CEO Elon Musk. Within hours of shareholders approving the compensation, approximately half a dozen new tokens emerged and flooded decentralized exchanges across blockchains such as Solana, Ethereum, and BNB Chain.
Data from DEXTools indicated that these new tokens bore names like TRILLIONS, Elon’s $1, and MUSK. According to the available data, several iterations of the TRILLIONS/SOL trading pair saw gains of around 190% within a 24-hour period. By Friday morning, the combined trading volume across these pairs had reached $20 million.
Potential Crypto Exit Scams Emerge Amidst Token Launches
💡 Some of the newly launched tokens displayed indicators of a cryptocurrency exit scam, experiencing rapid price spikes followed by a swift collapse to zero shortly after their initial launch. This pattern, often referred to as a rug pull, is a familiar occurrence in the crypto space. It is common for significant mainstream events involving high-profile individuals like Elon Musk to directly influence and trigger activity in the memecoin markets.
The news of the billionaire’s record-breaking compensation package prompted traders to quickly create and trade tokens that capitalized on the moment. DEXTools data showed that certain Solana-based tokens had already generated thousands of transactions in a matter of hours.
The approval of Musk’s $1 trillion package came after over 75% of the votes cast were in favor, notwithstanding criticism from some prominent investors regarding the compensation’s magnitude. Previously, reports indicated that Norway’s sovereign wealth fund, along with investment firms Glass Lewis and ISS, had announced their intention to vote against the package.
“Tesla’s board members have asked shareholders to approve a long-term incentive package for Musk to retain and motivate the CEO to remain in his current leadership role with a new share package where he will only be paid if he attains extraordinary financial returns.”
-Dan Ives, Analyst at Wedbush Securities.
This compensation deal has the potential to make Musk one of the world’s first trillionaires. As of November, Musk’s net worth exceeded $460 billion. The agreement stipulates that he could receive up to 423.7 million additional Tesla stock grants over the upcoming decade, contingent upon the company achieving specific performance benchmarks.
Milestones Tied to Musk’s Compensation
Musk is required to meet several ambitious targets for the distribution of his stock grants. These include achieving a market capitalization of $8.5 trillion for Tesla, which is approximately six times its current valuation of $1.4 trillion. He must also oversee the delivery of 20 million vehicles and the production of 1 million of the company’s Optimus humanoid robots.
Furthermore, Tesla shareholders require Musk to ensure the company achieves $400 billion in actual earnings over four consecutive quarters. In the third quarter of 2025, the electric car manufacturer reported $4.2 billion in actual earnings, marking a 9% decrease compared to the same period the previous year.
📍 The total number of shares will be disbursed in 12 equal tranches once Musk successfully meets a series of defined operational or financial objectives. For Tesla to reach the stipulated market capitalization, its stock price would need to increase by over 466% from its current valuation.
At the time of this report, Tesla’s stock was trading at $446, reflecting a decrease of approximately 5% over the past 24 hours. However, the stock price has seen a gain of nearly 1.7% over the preceding month.
Optimus Robots: Musk’s Vision for Tesla’s Future
Following a brief appearance on stage accompanied by Tesla’s Optimus robots, Musk described them as pivotal to the future of both the company and humanity. Although the humanoid robots have not yet entered mass production, Musk has projected them to become the company’s most significant product ever. He also suggested potential applications for the robots spanning sectors from healthcare to correctional facilities.
Musk had previously stated that the compensation package aims to enhance his control over Tesla and solidify his influence over its robotics endeavors. Despite ongoing discussions regarding Musk’s expanding influence across his various companies, Tesla received approval to invest in xAI. This move further integrates Musk’s cross-company ecosystem, which notably overlaps with artificial intelligence and cryptocurrency sectors.
Expert Summary
The approval of Elon Musk’s substantial pay package by Tesla’s board triggered a wave of memecoin creation and trading activity, with new tokens rapidly appearing on various blockchains. While some tokens saw significant gains, others quickly proved to be exit scams, highlighting the volatile nature of this market segment.
Musk’s compensation is linked to ambitious performance targets for Tesla, including market capitalization growth, vehicle and robot production, and sustained earnings. The CEO’s emphasis on Optimus robots as the future of Tesla underscores his long-term vision for the company.