Executive Compensation & Corporate Governance - Tesla's board proposes a new pay package for Elon Musk with ambitious targets tied to company performance, including vehicle delivery and market capitalization goals [1][2] - The targets include delivering 20 million vehicles and reaching a market capitalization of $85 trillion [2] - The incentive plan aims to ensure Elon Musk's long-term engagement and focus on Tesla's success [5][6] - Concerns are raised about potential conflicts of interest, particularly regarding Tesla's investment in Musk's AI startup, XAI [20] - Some analysts believe the board is overly reliant on Elon Musk, potentially outsourcing judgment to him [24] Financial Targets & Market Valuation - The market cap target is about $85 trillion, significantly higher than the current market cap of around $15 trillion [2][5] - An analyst's target price for Tesla is $440, implying a market cap of approximately $15 trillion [4] - Achieving the targets would require substantial EBITDA growth, far exceeding current levels; one analyst estimates current EBITDA at $17 billion [7] Strategic Importance of Elon Musk - Elon Musk is considered critical to Tesla's success, with his continued leadership seen as vital [5][19] - A significant portion of Tesla's valuation is attributed to Elon Musk's influence and perceived ability to achieve technological breakthroughs [21][22] - The board's actions suggest they view Elon Musk as Tesla's most important product, prioritizing his motivation and engagement [13]