Tesla(US:TSLA) Sou Hu Cai Jing·2025-09-05 11:33Core Viewpoint - Tesla has proposed an unprecedented compensation plan for CEO Elon Musk, potentially worth $1 trillion, aimed at incentivizing his leadership over the next decade while setting ambitious performance benchmarks [1][4]. Group 1: Compensation Plan Details - The new compensation plan includes performance targets such as expanding Tesla's autonomous taxi business and increasing the company's market value from approximately $1 trillion to at least $8.5 trillion over ten years [1][6]. - If Musk meets all performance goals, the value of his latest CEO rewards could reach $878 billion, potentially inflating to around $1 trillion with additional stock options [5]. - The plan requires Musk's involvement in establishing a long-term CEO succession framework to access the final parts of the performance rewards [5]. Group 2: Market Reaction and Historical Context - Following the announcement, Tesla's stock price rose by 2% in pre-market trading, although the stock has declined by 16% this year [2]. - This new compensation proposal comes after Musk's previous $50 billion pay package was rejected by a Delaware court, prompting the board to seek alternative compensation methods [4]. Group 3: Strategic Focus and Future Growth - The incentive measures are designed to keep Musk focused on Tesla while the company seeks growth in emerging markets such as robotics and artificial intelligence [6]. - The proposed market value of $8.5 trillion would be more than double that of Nvidia, currently the most valuable company globally, with Tesla's market cap projected to peak at around $1.5 trillion by the end of 2024 [6]. - Tesla's recent launch of its long-awaited autonomous taxi service is seen as a critical component of the company's future business strategy [6].