Tesla's Strategic Shift - Tesla is running ads to garner shareholder support for Elon Musk's compensation package, potentially worth $1 trillion, framing it as crucial for his continued leadership and influence, especially in AI and robotics [1] - The core issue revolves around a legal challenge to Musk's 2018 compensation plan (valued at $56 billion), which was voided by a Delaware court, raising concerns about board independence and fairness to shareholders [1] - Tesla is shifting its focus from being a traditional car manufacturer to an AI/robotics company, potentially impacting its valuation metrics [1][2] Leadership and Operational Concerns - The company's decision to cancel the $25,000 Model 2 and focus on Robotaxi represents a high-stakes bet on AI and FSD technology, redefining Tesla's future [1] - There are internal and external debates on whether Musk should focus on AI and robotics while a dedicated CEO manages the automotive business, balancing visionary disruption with steady optimization [2] - The company's board is essentially asking shareholders to decide if they believe in Musk's vision and leadership, accepting the associated risks and unconventional approach [2] Financial and Market Performance - Tesla's stock experienced a decline of 153% with a decrease of $666 per share, closing at $42924 [1] - The company's current strategy is forcing the market to value Tesla not on current car sales profits, but on the potential of Robotaxi and Optimus robots [2]

Core Viewpoint - Tesla has proposed a compensation package for CEO Elon Musk that could amount to nearly $1 trillion, contingent on achieving significant milestones over the next decade, potentially making him the world's first trillionaire [2][4][11]. Group 1: Compensation Proposal Details - The proposed compensation package is the largest in history and would grant Musk nearly $975 billion worth of shares if Tesla meets ambitious performance targets [4][7]. - The compensation consists of 12 tranches of shares, with Musk receiving equity based on achieving specific operational and market cap milestones [9][8]. - To receive the full compensation, Tesla must reach a market capitalization of $8.5 trillion, which would require the company to more than double the current market cap of Nvidia, the most valuable company to date [11][13]. Group 2: Milestones and Conditions - Key milestones include delivering 20 million Tesla vehicles, achieving 10 million active Full Self-Driving (FSD) subscriptions, and delivering 1 million robots and 1 million Robotaxis in commercial operation [15]. - The first milestone requires Tesla to reach a market cap of $2 trillion, nearly doubling from its current valuation of approximately $1.1 trillion [10][11]. - The proposal is subject to shareholder approval, with a vote scheduled for November 6 [16]. Group 3: Market Context - Tesla's stock price has seen a decline of over 12% year-to-date, remaining below its peak of $488 in December 2024, despite a recent increase of around 3.9% following the announcement of the compensation proposal [17][16]. - The current stock price is approximately $352 per share, indicating significant growth is needed to meet the proposed market cap milestones [10][16].