Overview
- The 10-year package offers up to $878 billion across 12 tranches, each worth about 1% of Tesla stock, contingent on hitting an operational goal alongside valuation thresholds from $2 trillion to $8.5 trillion.
- Equilar’s modeling for Reuters estimates two relatively easy product targets with a $2.5 trillion valuation could generate roughly $26.4 billion for Musk, while three targets at $3 trillion could reach about $54.6 billion.
- Experts say several product goals use vague terms such as an undefined “advanced driving system,” and broad definitions for robotaxis and “bots,” potentially allowing credit without full autonomy or humanoid robots.
- Profit hurdles appear most stringent, with eight EBITDA targets ranging from $50 billion to $400 billion versus Tesla’s 2024 EBITDA of $16.6 billion, yet large payouts could still occur via product and valuation milestones.
- Tesla’s board says the award is worth zero unless company value nearly doubles and an operational goal is met, requires Musk to remain an executive for about 7.5 years to collect stock, and grants voting rights as tranches are earned; a shareholder vote is slated for November, and Tesla shares fell about 2.9% on Friday.