Tesla(US:TSLA) Feng Huang Wang·2025-09-05 13:53Core Viewpoint - Tesla has proposed an ambitious new compensation plan for CEO Elon Musk, which could potentially make him a trillionaire if fully realized, contingent on meeting significant market capitalization milestones [1][2]. Group 1: Compensation Plan Details - The new performance-based compensation plan could grant Musk up to 423.7 million shares of Tesla stock, valued at approximately $143.5 billion based on recent closing prices [1][5]. - The plan requires Tesla's market capitalization to reach a series of thresholds, starting at $2 trillion and culminating at $8.5 trillion, which is significantly higher than previous targets [4][5]. - The 2025 plan mirrors the 2018 plan but is considerably more challenging, as it demands a market cap increase from $590 billion to $8.5 trillion, a difference of one order of magnitude [2]. Group 2: Performance Milestones - The compensation plan is structured in 12 tranches, with each tranche representing 1% of the adjusted share count, and requires operational and financial milestones to be met alongside market cap targets [3][5]. - The EBITDA targets start at $50 billion and can go up to $400 billion, with additional product-related goals such as delivering 20 million vehicles and achieving 10 million active FSD subscription users [6][8]. - The plan includes a holding restriction period of 5 years and mandates Musk to work at Tesla for at least 7.5 years to receive the full benefits [3][5]. Group 3: Shareholder Voting and Company Control - Tesla shareholders will vote on this compensation plan on November 6, and if approved, the company will issue additional shares, increasing Musk's potential control over the company [1][4]. - If the 2025 plan is fully realized, Musk's control could rise to 32%, although it may ultimately settle around 25% after accounting for taxes and dilution [8].