Elon's New Compensation Plan - $8.5 Trillion Total Market Cap
Elon Musk's new compensation plan was unveiled. It still has to be approved by the shareholders.
If achieved, Elon would almost be a trillionaire on Tesla stock alone.
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https://www.reddit.com/r/economy/comments/1n9eg6w/elon_musk_to_become_trillionaire/
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I really don't understand, Tesla's market cap is 1.2 Trillion USD and Musk holds about 15% of this. If he is to become a trillionaire would that mean he would become Tesla's sole owner?
The comp plan is fully completed with a market cap of $8.5 trillion. At that point, with the shares he would receive he would have 25% of the company.
Ok, but how does tesla go from a market cap of about 1.2 Trillion to 8.5 Trillion? I mean as far as I have read and understood (which could mean I am wrong) Tesla stock is over valued, which means it is not really worth 1.2 Trillion. And the largest corporation in the world is far from an 8.5 Trillion market cap. Only organization I have ever heard with that kind of money is BlackRock.
Wild to think the pay package could make him worth near a trillion just off Tesla. I’m more curious about the targets baked in and whether they lean on robotaxis, energy storage, or just market cap again. If shareholders sign off, do you think it actually keeps him focused on Tesla or spreads him even thinner across all his toys?
There are different milestones such as 1 million robotaxis on the road or the same number of Optimus bots deployed.
So it is a package that contains more than just market cap targets.
That makes sense. Are those targets public and time bound, or more open ended right now? Do they also include energy storage or profitability goals, and how would they verify 1 million robotaxis on the road, does supervised count or only fully driverless?
He has to hit everything in 10 years.
Is it really all or nothing over 10 years? The 2018 package unlocked tranches as targets were hit, so I wonder if this one has tiers too or a single cliff. And how would they verify stuff like one million robotaxis, only fully driverless count or do supervised rides qualify?
There are different vesting periods that he has to hit. I believe it is two. So what vests before the date, he gets. If after, he has to hit all levels or he doesnt get that.
There will be no supervised rides in 10 years.