Tesla Board Announces Elon Musk $1T Pay To Make TESLA $8.5T

Tesla's Compensation Package for Elon Musk

🚀 Q: What are the key milestones in Tesla's new compensation package for Elon Musk?
A: The package includes 12 operational milestones tied to $8.5 trillion market cap, including 20 million vehicles delivered, 10 million active FSD subscriptions, 1 million robots delivered, 1 million robo taxis in operation, and $400 billion adjusted EBITDA.

💼 Q: How could Elon Musk's ownership stake in Tesla change with this package?
A: Musk's ownership could increase to over 25% if he achieves all 12 tranches, potentially taking 10 years to complete, with voting rights granted earlier upon milestone achievement.

📊 Q: What is the significance of the proxy vote on September 15th?
A: The proxy vote determines share count and equity incentive plan, potentially giving Musk voting rights for remaining shares from the 2018 package, accelerating his path to 20% ownership.

Tesla's Growth and Profitability Targets

📈 Q: What is Tesla's final profitability target in the compensation plan?
A: The plan targets $400 billion in EBITDA, comparable to Meta, Alphabet, and Microsoft at their $8.5 trillion market cap, suggesting Tesla's potential value could reach $15-16 trillion.

🚗 Q: What are the specific product-related milestones in the plan?
A: Key milestones include 20 million vehicles delivered, 10 million FSD subscriptions, 1 million robo taxis deployed, and 1 million bots delivered over a 5-10 year timeframe.

🤖 Q: How does the plan focus on Tesla's future technologies?
A: The plan emphasizes robo taxis, autonomy, and humanoid robots, with specific targets for each category to drive growth and technological development.

Compensation Plan Structure and Implications

⏳ Q: How does the plan address Elon Musk's time commitment to Tesla?
A: The plan includes restricted stock awards with voting control, addressing Musk's concern about his finite time for Tesla given his other attractive options.

🎯 Q: How aggressive are the valuation targets in the compensation plan?
A: The targets are described as "aggressive" and "out there" but align with Tesla's previous compensation schemes, reflecting the board's confidence in Musk's leadership.

🔄 Q: What is the significance of the CEO succession planning in the compensation package?
A: Musk must participate in a long-term CEO succession framework to unlock the last two tranches, ensuring a smooth transition of leadership and knowledge.

Tesla's Future Growth and Market Position

💰 Q: What is the potential market cap Tesla aims to achieve through this plan?
A: The plan targets an $8.5 trillion market cap over 5-10 years, with potential to exceed this if profitability targets are met.

🔬 Q: How does the plan address Tesla's entry into new product categories?
A: The plan focuses on robo taxis, autonomy, and humanoid robots, indicating Tesla's intent to expand and innovate in these areas.

🏆 Q: What does the compensation plan reveal about Tesla's ambitions?
A: The plan aims to bring Tesla to "levels never heard of before", indicating the company's goal to become a dominant force across multiple technological sectors.

Legal and Shareholder Considerations

⚖️ Q: How does the plan address potential legal issues with Musk's 2018 compensation?
A: Special reserve shares are included to make Musk "whole" on his 2018 compensation, regardless of the Delaware court's decision.

📅 Q: When should shareholders consider being in Tesla shares?
A: Shareholders should consider holding shares by September 15th to participate in the proxy vote and have a say in defining Tesla's future.

Tesla's Operational Strategy

🔧 Q: How are operational milestones tied to financial payouts in the plan?
A: Operational milestones are paired with market cap targets, ensuring Musk's compensation is directly linked to Tesla's performance and growth.

📊 Q: What is the significance of the $50 billion adjusted EBITDA target?
A: Achieving $50 billion adjusted EBITDA over 5-10 years is a key growth milestone, indicating Tesla's ambitious profitability goals.

🚀 Q: How does the plan reflect Tesla's culture and innovation strategy?
A: The plan's structure reflects Tesla's "culture of unmatched performance and radical innovation", emphasizing aggressive growth and technological breakthroughs.

Ambitious Compensation Package

1. 🚀 Tesla's new compensation package for Elon Musk aims to drive the company to $8.5 trillion market cap and $400 billion adjusted EBITDA.
2. 💼 The plan includes 12 operational milestones tied to specific EBITDA and product goals, such as delivering 20 million vehicles and achieving 10 million FSD subscriptions.
3. 🤖 Key milestones include deploying 1 million robotaxis and 1 million robots, expected to be achieved in 2-3 years.

Ownership and Timeline

1. 📈 Musk's ownership stake could increase to 25-28% if all tranches are hit, depending on inclusion of the 2018 award.
2. ⏳  Achieving all milestones would take at least 10 years, with a 5-10 year timeframe for the 2025 compensation plan.

Growth Projections

1. 📊 Reaching $400 billion EBITDA in 5 years requires a 92% annualized compound growth rate.
2. 🚗 Tesla must increase vehicle deliveries from current 8 million to 20 million, likely requiring significant price reductions.

Strategic Focus

1. 🚕 The robotaxi business is expected to be a key growth driver for Tesla.
2. 🧠 The plan emphasizes autonomy, robo taxis, and humanoid robots as core focus areas.

Comparison and Context

1. 💰 The $400 billion EBITDA target matches the combined trailing 12-month EBITDA of Meta, Alphabet, and Microsoft.
2. 📱  The 10 million active FSD subscriptions milestone is crucial for unlocking various restricted stock tranches.

Board's Perspective

1. 👁️ The board views this plan as a way to "get Musk's attention" and "reward his efforts" across his multiple businesses.
2. 🏆 The compensation package includes quotes from industry leaders praising Musk's leadership and vision.

Market Implications

1. 📉 Tesla is expected to "take a meaningful step lower" in vehicle prices to reach delivery milestones.
2. 🆕 The company plans to introduce new products at new price points to achieve subscription targets.

Ambitious Targets

1. 🎯 The final market cap target of $8.5 trillion is twice Nvidia's current market cap.
2. 💭 Musk believes Tesla can reach a $20 trillion valuation, which the board acknowledges as "crazy numbers".
3. 🏋️  The board describes these targets as "aggressive" and "out there" but achievable in "rapid time".

• 00:00 💰 Elon Musk's pay package is tied to Tesla reaching an $8.5 trillion market cap, with milestones that could make him own 25-28% of the company.
  • Elon Musk's potential pay package is tied to Tesla reaching a $8.5 trillion market cap, with milestones including scaling the robo taxi and bot business.
  • Elon Musk's ambitious plans for Tesla include operational milestones such as 20 million vehicles delivered, 10 million active FSD subscriptions, and $400 billion in adjusted EBITA.
  • Tesla shareholders have crucial decisions to make on two proposals: lowering the voting threshold from 66% to a simple majority and investing in XAI.
  • Elon Musk's preliminary proxy states that shareholders on record as of September 15th will have voting rights, which is crucial for his potential compensation package vote.
  • Elon Musk's compensation plan, tied to operational milestones, could make Tesla an $8.5 trillion company, driven by the company's existing operational capabilities and potential for growth.
  • Elon Musk could get 25-28% of Tesla if he hits all 12 tranches, which could take up to 10 years.
• 08:03 🚀 Elon Musk may make Tesla an $8.5T company by reaching milestones of 20 million vehicles, $2.5T valuation, and subscription-based services.
  • Elon Musk's voting rights will be attained earlier when a milestone is reached, and another 200 million shares are proposed for the equity incentive plan.
  • Elon Musk will likely quickly reach 18% and possibly 20% of Tesla's shares, a milestone tied to 20 million cars and a $2.5 trillion valuation.
  • Analysts discuss Tesla's potential to reach 20 million vehicles delivered, considering it an operational milestone, and debate the feasibility of achieving this goal alongside a $2 trillion valuation.
  • Tesla will likely introduce new products at lower price points, such as below $30,000, to reach 10 million additional vehicles and support its growth.
  • Tesla is likely to transition to a subscription-based model for its services, including potentially lowering the cost of Full Self-Driving (FSD) to around $99 or lower.
  • To hit market cap milestones, Elon Musk needs to achieve both operational targets, such as 20 million vehicles and 10 million active FSD subscriptions, in addition to market capitalization goals.
• 14:42 🤖 Elon Musk may turn Tesla into an $8.5T company with robot taxis and humanoid robots.
  • No specific information was provided about Elon Musk making Tesla an $8.5T company, but a mention was made to be ready for September 15th for a share count and voting.
  • To hit Tesla's EBITDA milestones, Elon Musk likely needs over 2 million robot taxis or robots, each earning $25,000 profit annually, implying a valuation of $8.5 trillion.
  • Elon Musk and Tesla may be uniquely capable of achieving ambitious milestones, including creating a $8.5T company, due to his leadership and control over the company's future.
  • Elon Musk's company is financially backing humanoid robots and autonomous vehicle travel.
• 19:38 💸 Elon Musk predicted to grow Tesla to $8.5 trillion company, potentially even $20 trillion, driven by profitability targets and his leadership.
  • Tesla could reach an $8.5 trillion valuation if it hits certain profitability targets, benchmarked against companies like Meta, Alphabet, and Microsoft.
  • Analyst suggests Tesla's market cap could reach $15-16 trillion if it achieves $400 billion in EBITDA, not $8.5 trillion, due to its rapid growth trajectory.
  • Elon Musk is predicted to potentially grow Tesla to an $8.5 trillion company, with some even speculating he could reach $20 trillion within 10 years.
  • Tesla's board is offering Elon Musk a restricted stock award to ensure his attention and voting control, addressing his key concerns and compensating him for past efforts.
  • Elon Musk's potential award is overshadowed by the real milestone: taking Tesla to an $8.5 trillion company.
  • Elon Musk's leadership is crucial to Tesla's success, with his departure likely causing top talent to leave, and his compensation is seen as fair given his achievements and the value he brings to the company.
• 29:42 💸 Elon Musk aims to make Tesla an $8.5 trillion company through innovative projects like robo-taxis and autonomy, with his compensation plan tied to massive growth targets.
  • If Tesla's valuation reaches $8.5 trillion, the stock price could potentially be around $2,600, assuming no change in share count.
  • Elon Musk's compensation plan is tailored to his unique abilities, driving Tesla's potential to become an $8.5T company through innovative projects like robo-taxis, autonomy, and humanoid robots.
  • Elon Musk's goal to make Tesla an $8.5 trillion company is a large but relatively smaller jump compared to previous valuation increases, considering the law of large numbers.
  • To reach $50 billion in IBIDA, Tesla needs approximately 2 million robo taxis or bots generating $25,000 in annual profit, and 16 million at the $400 billion level.
  • Tesla's valuation could reach $8.5T with emerging new sales channels, such as building to their own and other fleets, and a shift to a bundled sales model with lower costs.
  • Elon Musk's compensation package is tied to Tesla's massive growth, with targets including a $8.5 trillion market cap, achievable through 52.7% annual growth over 5 years or 23.6% over 10 years.
• 39:36 🚀 Elon Musk's ambitious targets for Tesla, including $8.5T valuation, hinge on achieving operational milestones like 20M vehicle deliveries and 10M active FSD subscriptions.
  • The speaker is navigating through a presentation, seemingly disorganized, to discuss Elon Musk's pay and Tesla's potential, mentioning that achieving certain targets is more complex than just delivering 20 million vehicles.
  • The discussion revolves around Tesla's milestones, where hitting certain earnings goals, such as $50 billion in EBITDA or $2.5 trillion, requires achieving corresponding operational milestones, like delivering 20 million vehicles.
  • Reaching 10 million active FSD subscriptions will likely require a change in Tesla's business model, such as embedding the technology into every vehicle or reducing costs.
  • Achieving 100% adoption of Full Self-Driving (FSD) on 10 million existing Tesla vehicles is a challenging goal, especially given the current single to double-digit take rate.
• 44:26 💰 Elon Musk's new compensation plan could make him an additional 12% of Tesla, driving the company to reach a $8.5 trillion market cap through AI-powered services and autonomy milestones.
  • Elon Musk can earn an additional 12% of Tesla's company for growing its market cap from $1 trillion to $8.5 trillion, with conditions tied to delivering on autonomy, bots, and robo-taxis milestones.
  • Elon Musk could make Tesla an $8.5T company due to achievable growth rates of 38% over 10 years, driven by AI-powered services and unlocking value upstream and downstream.
  • Elon Musk's compensation is tied to Tesla reaching market capitalization milestones of up to $8.5 trillion and developing a CEO succession plan.
  • Elon Musk suggests that finding a successor to lead a potential $7-8 trillion Tesla company will be challenging and speculates about who could take on the role.
  • Elon Musk's new compensation plan removes the overhang of him being distracted from Tesla, allowing him to focus on the company and potentially make it an $8.5T company.
  • Elon Musk has a mechanism to ensure he receives his 2018 compensation, with special reserve shares to make him whole regardless of the Delaware court's decision.
• 55:12 💰 Elon Musk's compensation package has brought certainty for Tesla shareholders, with operational and economic milestones that will likely impact the company's future success.

WatchUrl: https://www.youtube.com/watch?v=-zF4fMrPzTM