Tesla Stock Surges 4% on $1T Musk Compensation Plan

Tesla Inc. (TSLA.US) experienced a notable increase in its stock price, rising over 4% to $353.51. This surge followed the revelation of an unprecedented compensation package proposed for its CEO, Elon Musk. The package, valued at approximately $1 trillion, is poised to be one of the most substantial executive compensation plans in U.S. corporate history. The proposal aims to motivate Musk to continue leading Tesla over the next decade, setting ambitious performance benchmarks that include expanding Tesla's autonomous ride-hailing service and increasing the company's market value from its current level of around $1 trillion to at least $8.5 trillion. The plan spans a decade.

The compensation package is structured in a tiered format, with 12 tranches of rewards tied to specific milestones related to the company's market value and operational performance. The first milestone requires Tesla's market value to nearly double to $2 trillion, while the ultimate goal is to reach a market value of $8.5 trillion. If Musk successfully meets all the targets, he could potentially become the world's first trillionaire. The compensation package includes the potential award of 4.237 billion additional Tesla shares, which, based on the previous day's closing price, would be valued at approximately $143.5 billion. However, the actual value of these shares will depend on Tesla's future market performance.

The board of directors at Tesla has emphasized that this compensation plan is designed to incentivize Musk to continue driving the company's growth and innovation. The plan is seen as a strategic move to retain Musk's leadership and ensure that Tesla remains at the forefront of the electric vehicle and clean energy sectors. The announcement has garnered significant attention, highlighting the unprecedented nature of the compensation package and its potential impact on Musk's personal wealth and Tesla's future trajectory. The board of directors at Tesla has emphasized that this compensation plan is designed to incentivize Musk to continue driving the company's growth and innovation. The plan is seen as a strategic move to retain Musk's leadership and ensure that Tesla remains at the forefront of the electric vehicle and clean energy sectors. The announcement has garnered significant attention, highlighting the unprecedented nature of the compensation package and its potential impact on Musk's personal wealth and Tesla's future trajectory.