Part 5/10:
Achieving these milestones would translate into Musk earning shares valued at $1 trillion, equivalent to about 12% of Tesla. For context, such a sum would mean Musk’s compensation is akin to capturing a significant stake in a company potentially worth $8.5 trillion—a near-impossible yet ambitious feat.
From a shareholder perspective, this structure operates on the assumption that Musk's efforts will lead to immense value creation:
"If Elon can increase Tesla’s value by $7.5 trillion, then paying him $80 billion (12% of the $8.5 trillion target) seems a prudent investment," as argued by industry analysts.
This notion is reinforced by the market’s initial positive reaction, with Tesla’s stock rising over 2.85% amid excitement about the proposed plan.