For Tesla, Elon Musk is worth a Billion dollars!

This page is translated from the original post "Pour Tesla, Elon Musk vaut un Billion de dollars !" in French.

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Elon Musk Tesla

Tesla has presented a new compensation plan for Elon Musk, potentially making him the first billionaire in history.

Already the richest man in the world, Musk could be granted an additional 423.7 million shares of Tesla if the automaker reaches unprecedented financial targets.

At the current stock value, this package would represent $143.5 billion. However, the full shares would only be awarded if Tesla’s market capitalization climbs to $8.5 trillion, nearly eight times its current level of about $1.1 trillion. This valuation would far exceed that of companies like Nvidia, currently leading the market.

This plan comes at a time when Tesla is going through a delicate period. Its sales are declining, its margins are eroding, and competition from Chinese manufacturers, particularly BYD, is becoming increasingly intense. Despite this, the board believes it is essential to retain Musk and focus his attention on Tesla, as he diversifies into other sectors: SpaceX, artificial intelligence with xAI, and humanoids like Optimus.

To Musk or not to Musk, that is the question

The question of Musk’s leadership remains sensitive. His previous compensation plan from 2018, approved twice by shareholders, was annulled by a Delaware judge who deemed it illegal. Tesla is trying to reinstate it while adding this new colossal mechanism. Musk already holds 410 million Tesla shares, valued at $139 billion, and also controls significant stakes in his other companies.

For Musk’s supporters, this strategy makes sense, and Tesla must keep its greatest asset as the era of AI opens a new phase of growth.

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Nevertheless, Elon Musk’s promises – robotaxis, humanoids, massive profits linked to autonomous driving – are still slow to materialize. Between futuristic ambitions and industrial realities, Tesla’s future hinges on a risky equation: convincing the market that its leader is indeed worth… a trillion dollars.

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