Tesla(US:TSLA) Sou Hu Cai Jing·2025-11-30 01:13Core Viewpoint - The approval of Elon Musk's $1 trillion compensation plan by Tesla shareholders raises concerns about potential shareholder wealth erosion, despite being framed as a performance-based incentive [1][3]. Compensation Plan Structure - The compensation plan consists of 12 tiers of restricted stock grants, requiring both valuation and operational milestones to be met, starting with a market cap of $2 trillion and potentially reaching $8.5 trillion [4]. - Each milestone achieved allows Musk to receive 35.312 million shares, increasing his current stake by approximately 1% [4]. - If Musk achieves all targets, he could earn $1 trillion worth of stock over ten years [4][5]. Potential Challenges - The operational goals are deemed overly ambitious, with significant hurdles such as building a fleet of 1 million autonomous taxis, while Tesla's current profitability is declining [6]. - The stock is perceived as overvalued, with a current P/E ratio of 375, making it difficult to reach the initial $2.5 trillion market cap milestone [6]. Achievable Targets - Musk may realistically achieve the initial $2 trillion market cap and the operational goal of delivering 20 million cars, as the requirement is based on cumulative sales since Tesla's inception [7][8]. - The plan allows Musk to secure his compensation if the market cap reaches $2 trillion for six months, regardless of future stock price fluctuations [9].