Tesla's CEO Elon Musk is set to reap a whopping $1 trillion if the company hits its ambitious targets over the next decade. The pay package, which was approved by investors at the recent shareholders meeting, is designed to motivate Musk to drive Tesla's business towards exponential growth.
The plan consists of 12 tranches, each tied to a mix of market value and operational targets. If all conditions are met, the shares would be worth approximately $1 trillion, making Musk's stake in the company rise to 25 percent from his current 13 percent ownership position.
To achieve this, Musk must push Tesla's market value to $2 trillion by unlocking the first tranche, followed by four more tranches that require massive $500 billion increases in market value. The final two tranches demand even greater increases of $1 trillion each, with a projected target of $8.5 trillion by 2035.
Furthermore, Musk must also hit a series of operational milestones, including delivering 20 million Tesla vehicles, reaching 10 million active Full Self-Driving subscriptions over three months, delivering 1 million bots, and deploying 1 million Robotaxis in commercial operation. Annual adjusted EBITDA milestones starting at $50 billion will also be required.
Tesla's success under Musk's leadership is expected to have a significant impact on its vision of becoming an "artificial intelligence and robotics juggernaut of truly immense capability and power." The company has been working on this front, with Musk's A.I. startup xAI valued at around $200 billion.
This new package is significantly more ambitious than the two previous long-term awards Tesla had designed for Musk, which required him to grow the company by billions in increments. This time, most of the plan is built around massive $500 billion jumps, with an estimated requirement of nearly $7.5 trillion in value creation for shareholders to receive the full award.
Overall, the package sets a high bar for Tesla's future growth and operational performance under Musk's leadership, while also underscoring his vision for the company's expansion into the AI and robotics space.
The plan consists of 12 tranches, each tied to a mix of market value and operational targets. If all conditions are met, the shares would be worth approximately $1 trillion, making Musk's stake in the company rise to 25 percent from his current 13 percent ownership position.
To achieve this, Musk must push Tesla's market value to $2 trillion by unlocking the first tranche, followed by four more tranches that require massive $500 billion increases in market value. The final two tranches demand even greater increases of $1 trillion each, with a projected target of $8.5 trillion by 2035.
Furthermore, Musk must also hit a series of operational milestones, including delivering 20 million Tesla vehicles, reaching 10 million active Full Self-Driving subscriptions over three months, delivering 1 million bots, and deploying 1 million Robotaxis in commercial operation. Annual adjusted EBITDA milestones starting at $50 billion will also be required.
Tesla's success under Musk's leadership is expected to have a significant impact on its vision of becoming an "artificial intelligence and robotics juggernaut of truly immense capability and power." The company has been working on this front, with Musk's A.I. startup xAI valued at around $200 billion.
This new package is significantly more ambitious than the two previous long-term awards Tesla had designed for Musk, which required him to grow the company by billions in increments. This time, most of the plan is built around massive $500 billion jumps, with an estimated requirement of nearly $7.5 trillion in value creation for shareholders to receive the full award.
Overall, the package sets a high bar for Tesla's future growth and operational performance under Musk's leadership, while also underscoring his vision for the company's expansion into the AI and robotics space.
I'm low-key freaking out about Elon Musk's $1 trillion pay package 
! Like, he needs to hit some crazy targets with Tesla's market value increasing by trillions 
. And if he does, his stake in the company goes up to 25%! That's wild. 
But what really gets me is that most of this plan is about making huge $500 billion jumps 
. The AI and robotics part of it seems legit though 
... now if they can make the cars and robotaxis as awesome too 
.
But hey, if he can make it happen, I'm all for it. Musk's got a reputation for being a risk-taker, and that's what Tesla needs to stay ahead of the curve 
.
! I'm low-key obsessed with Elon Musk's vision for Tesla, but let's be real, this pay package is straight fire 
? Mind blown 
I think this pay package is both motivating and worrying at the same time 
. But on the other hand, it also puts a huge pressure on him to deliver massive growth numbers which can be daunting even for someone as driven as he is 
. I mean, hitting $2 trillion market value in 10 years? That's like trying to build a giant rocket ship 
without any setbacks 
.
and I gotta say, it's kinda inspiring seeing someone believe that much in their vision 
... but at the same time, it can't be easy to put so much pressure on yourself, especially when everyone's watching 
... fingers crossed for Tesla and its future plans 
.
Only time will tell 
.
. Like, imagine 8.5 trillion dollars by 2035 
.
. We gotta take a step back and ask ourselves what's truly important - is it just about making more money or creating value that benefits everyone? 
! I think it's awesome that he's setting such high goals for himself, but also kinda crazy. Like, how are they even planning to get there? 
.
. Whether or not it pays off remains to be seen, but one thing's for sure – we'll be keeping a close eye on Tesla's progress