Tesla’s xAI Investment & The Truth About Elon’s Pay Package

Tesla's CEO Compensation Plan

🚀 Q: What are the key requirements for Elon Musk to achieve full compensation under Tesla's proposed plan?
A: Musk must lead Tesla to an $8.5 trillion market cap, achieve $400 billion in adjusted EBITDA, and hit operational milestones including 20 million vehicles delivered, 10 million active FSD subscriptions, 1 million robots delivered, and 1 million robo taxis operating commercially.

💼 Q: How is the compensation plan structured?
A: The plan consists of tranches, each worth 1% of Tesla's value, with the first tranche requiring a $2 trillion market cap and subsequent tranches increasing by $500 billion increments up to $8.5 trillion.

Ownership and Control

🏆 Q: What ownership stake could Musk potentially gain through this plan?
A: If all goals are met, Musk would acquire a 25% ownership stake in Tesla, equivalent to voter control of 25-33%.

⏳ Q: What holding period is required for Musk to unlock the final tranche?
A: Musk must hold the new shares for 7.5 years after receiving them to unlock the final tranche and achieve the full 25% ownership stake.

Rationale and Criticism

💰 Q: How is the compensation plan justified?
A: The plan is considered fair and reasonable for someone who creates extraordinary value for shareholders, rewarding them with a tiny fraction of the massive increase in value they bring to the marketplace.

🤔 Q: What is the perspective on those who disagree with the compensation plan?
A: Critics are characterized as potentially wanting everything given to them for free and having no conception of how people get compensated in proportion to the value they bring to the marketplace at extraordinary levels.

• 00:00 💸 Elon Musk's new CEO compensation plan could pay out if Tesla reaches $10 trillion valuation.
  • Tesla's proposed third CEO compensation plan could make Elon Musk's payout if he drives the company to a $10 trillion valuation, repeating a pattern of achieving seemingly absurd goals.
  • Elon Musk's achievement of his 2018 compensation plan's requirements sets clear goals for Tesla, which investors should consider as Musk aims to reach a $1 trillion valuation.
• 01:31 💸 Elon Musk can earn a 25% ownership stake in Tesla, worth around $2.125 trillion, by achieving market value and operational milestones, including increasing the company's valuation to $8.5 trillion.
• 02:54 💸 Tesla's 10 million active FSD subscriptions could generate $12 billion in pure profit revenue annually, making it a massive money printer.
• 03:48 🤖 Elon Musk aims to reach an $8.5 trillion market cap for Tesla by achieving hundreds of billions of dollars in earnings through milestones like 1 million robo taxis, humanoid robots, and FSD subscriptions.
• 05:16 💸 Elon Musk may earn $1 trillion CEO award if Tesla reaches $8.5 trillion valuation.
  • Elon Musk's potential earnings from Tesla reaching $8.5 trillion would yield a 100% return on his invested capital per year.
  • Elon Musk has a high likelihood of achieving his third compensation package, potentially earning around $1 trillion, as his previous two packages were achieved ahead of schedule.
• 06:44 💸 Elon Musk's performance-based compensation is fair and reasonable, as it reflects the extraordinary value he creates for shareholders, and critics are likely envious and out of touch with how the world works.
• 07:33 💸 Elon Musk's $1 trillion CEO award is tied to Tesla reaching an $8.5 trillion valuation.
  • Elon Musk's compensation plan incentives suggest he aims for Tesla to reach an $8.5 trillion valuation to fully vest his $1 trillion CEO award.
  • Leaders who deliver massive shareholder value should be rewarded with performance-based compensation, while those who don't deliver value should get paid nothing.

WatchUrl: https://www.youtube.com/watch?v=3L-bYkfAHFM