Tesla's substantial investment of one trillion dollars allocated towards Elon Musk

Tesla's massive $1 trillion investment benefits Elon Musk personally

In a recent development, the Tesla board of directors has proposed a new compensation package for CEO Elon Musk. This pay package, valued at up to $1 trillion, is linked to Tesla's market valuation goals and could potentially give Musk up to 423.7 million additional shares of Tesla stock in the next decade.

The proposed package has sparked a mix of reactions. Ross Gerber, CEO of Gerber Kawasaki, believes the goals are "absurdly high," but investors may see potential for significant returns if Musk achieves them. Tesla investors, it seems, are likely to approve the pay package, even though Musk won't see any shares until Tesla reaches a $2 trillion valuation, nearly double its current value.

The pay package is seen as a result of Musk's fear of being removed from Tesla due to his small ownership (13%). Musk has demanded control of at least 25% of Tesla shares and has stated that he would prefer to build products outside of Tesla if he does not have at least this level of voting control. The company's board, however, believes Musk is necessary for Tesla's long-term mission.

Elon Musk, besides being the CEO of Tesla, is also the founder or owner of several other companies, including SpaceX, Neuralink, and The Boring Company. He absorbed SolarCity into Tesla as Tesla Solar. If Tesla shares appreciate as much as the pay package forecasts, the potential shares would be worth close to $1 trillion, significantly impacting Musk's overall wealth and control.

Analyst Gordon Johnson calls Musk a master manipulator, able to keep the stock elevated with promises of a bright future. However, critics predict Musk will fail to deliver on the potential of AI and autonomous vehicles, citing broken promises about self-driving vehicles and robotaxis.

There was a reported search for a possible successor for Musk earlier this year, but the search seems to have been put on hold for now. Musk has been focusing on other companies, such as SpaceX, Starlink, and xAI, and has become more involved in politics. Gerber, on the other hand, has sold almost his entire stake in Tesla.

Munster, an analyst, believes physical AI will impact anything that moves, with a market potential that's hard to fathom. Along with autonomous vehicles, robotaxis, and humanoid robots, Munster and other Tesla bulls predict that AI will lift Tesla to an $8.5 trillion target price and $400 billion adjusted operating profits.

Only time will tell if Musk will be able to deliver on these ambitious goals and reap the benefits of this massive compensation package. For now, the future of Tesla and its CEO remains a topic of much debate and speculation.