On September 5, Timing Board unveiled an entirely new compensation package for Elon Musk, which has announced the largest numbers in the year of wage director. Simply put, if Ev Maker CEO strikes all goals, he will set a total payment of $ 1 trillion anywhere from mid -2030 to 2035. The template has truly won a wheel in the commercial press and between Wall Street analysts, friendly from the two friendly friends, who got luxurious rewards for arranging them in Tesla Days.
In fact, investors remembered that they were in fact the last paid deal of 2018, as the famous Musk was delivered on the “impossible” goals in the mission, which apparently sent the shares on a moon and delivered tens of billions of dollars in Tesla shares. They are clearly hoping for something similar to repetition. The news raised Tesla shares at the beginning of trading on September 5 by about 5 %.
Suitable for the new plan: Fantasyland. For the largest part, the goals are so enormous that, given the current bad results and the probability of the possibilities, the opportunities that Musk will achieve until the slightest ghost looks very likely, and the possibility of capturing these heights almost. What still amplifies the price of Tesla’s share is the highly lucrative MUSK claims, from the FSD (full self) program to robots to human robots, which are constantly delayed, and none of them until now to customers. What matters to go ahead is the net profit and cash flow generated by the Tesla Motor concession in Tesla, and the COMP structure extension numbers are so flexible that it will not be surprising if it is more frustrated than Elon Musk.
It is better to describe musk salaries as “shooting for the moon”
Tesla presented the program in the statement of the annual agent, which was presented on September 5. Juniper networksAnd Cathlein Wilson Thompson, one of the major human resources, designed, describing it in documents read like the sub -text of “Hey, Elon, you are calling for all this voting force, you offer promises like Superman, now prove that you can fly!” It is important to understand the context of the place where the previous and current payment plans are now. In 2024, the Dilayer Court nullified the 2018 tall issue, which was very successful for both shareholders and shareholders. The company and the CEO now attracts this decision. In early August, Tesla made an emergency plan that will not leak unless the Tesla team lost the call.
This backup arrangement aims to restore a lot of what Musk will lose if the Dilayer decision stands, by granting it shares now at a value of $ 31 billion if None of the CEO is still Or the head of product development for the next two years; He cannot sell grants until mid -2030.
This long -term prize is completely new to the “Makeup”, which costs $ 30 billion. In the agent, it is characterized by super terms, which are rarely seen in these dry documents. Denholm and Wilson-thetpson describes the goal as creating a “most valuable company in history” and feels standards as “more ambitious” than the 2018 plan, which is the amazing claim since this slope appears to be impossible to top it. “In 2018, Elon had to grow billionaires in 2025, he had to grow trillions,” he wrote Dunholm and Wilson Thompson. In an interview with CNBC, Denholm acknowledged that some may see challenges as very large so that they cannot be taken seriously, and stated that the initiative reaches “fire for the moon.”
The new plan is largely designed as its famous predecessor for 2018
In the agent, the Board of Directors stresses that Musk seeks a much larger royal share and that the best way to stimulate Mavrick is to provide a way to achieve this goal. Managers’ view: “We believe that Elon is the only person who is able to lead Tesla at this embarrassment point.” They cite “the general data that the voting effect is very important for him if he is assigned to develop artificial intelligence products for Tesla”, adding that the carrot in the big jump in the ownership must have a musk to “achieving unusual performance features while staying in Tesla.”
The basic design reflects its pioneering structure from 2018. Opening grants is similar to the process to open a box and support safety: it requires two key. The plan set 12 goals for the market market, starting from $ 2 trillion, and then increases an increase of $ 50 billion to incredible $ 8.5 trillion, what is the most valuable world institution, NafidiaSell for today. But the construction also requires a second key consisting of 12 operating measures, six for increasing steps from EBITDA, and six others for achievements such as placing a million robots in trading and selling 10 million FSD subscriptions.
The goal of the market share with any one operating scale will give an additional Musk 1 % of Tesla shares. The expansion of the top of the maximum market is worth $ 8.5 trillion and the issuance of all the goals of the products would bring this to a trillion dollars. Currently, Musk has about 13 % of Tesla shares, and he publicly overcomes its reaching 25 %. The ringing of the 24 built -in market in addition to operational bells, with a value of 1 % for each of them, would raise musk for the 25 % prize prize. Grants come in the form of restricted stocks; The shares acquired by reaching the twin goals will be all moved after seven and a half years, and Musk will only be hurt if the position of CEO or the head of the product development remains during that period. It can get a longer runway if it remains for 10 years.
The goals are so tall that they risk being more frustrated than stimulation
The plan faces an essential problem: Tesla as an ongoing institution extends so badly to the extent that moving from the place that now stands to the type of numbers needed to win what he wants more – carries more ownership – like a very far leap. This reporter wrote several stories to assess the size of what I call Musk Magic Premium. This is the part of the evaluation that does not depend on the current Tesla profits, but MUSK promises to the global innovations that have turned in the pipeline. What makes aspirations as shown in the agent is very unreasonable: it requires huge gains in stocks stacked above the evaluation that already fly from the basics.
Under the new payment package, see what Musk should only achieve to seize the 1 % first slide. And that 1 % will be much, about 20 billion dollars. One key should be relatively easy: achieving 2 million cumulators in EV sales. But what about getting the lowest goal in the market of $ 2 trillion by early 2033?
It returns to the profits needed to get there. Again, let’s give Tesla P/E out of 30 and a half years from now. Mathematics, and you will get dedicated profits of $ 67 billion. This means hitting the basic profits today of $ 3.7 billion in 18, or about 50 % per year. Perhaps 3.7 billion dollars may exaggerate the sustainable profits of Tesla, as it decreases in a quarter. Cash flow expectations are also bad. After offering RG credits, Tesla has created a free cash flow in the past two quarters.
Tesla dreams if he believes that this paid deal will lead to the cancellation of another wonder like its predecessor for the year 2018. The board of directors mocks musk from saying, “You want these huge new pieces to be from the company? Go proving that you are doing it. Enhancing the share price enough to deserve it.” Elon Musk did once. But as the proverb says, even for Elon Musk, the previous performance is not a guarantee of future results.
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