Tesla surges 14%! Musk's "trillion-dollar gamble" ignites Wall Street, AI drives market value to $8.5 trillion?

Tesla (TSLA-US) has once again become the market focus with a strong rise over four consecutive trading days, with its stock price jumping from $346.4 to $395.94, a cumulative increase of 14%, and soaring 7.4% in just one day on Friday, with a trading volume reaching $65.3 billion.

This surge is not without reason, driven by two key catalysts: Musk's compensation plan, which can be described as a "trillion-dollar gamble" for the next decade, and investors scrambling to buy shares for voting rights at the November shareholder meeting.

01 Four-Day Rise, Voting Rights Competition Boosts Stock Price

According to regulations, shareholders must hold Tesla stock before the market closes on September 15 to qualify for voting at the shareholder meeting on November 6. This meeting will determine whether Tesla can achieve its ambitious goal of an $8 trillion market value, seen by the market as a historic moment.

Investors are rushing to buy shares not only to obtain voting rights but also to support Musk in continuing as Tesla's CEO, ensuring that the company's strategic direction over the next decade remains on track.

02 Ten-Year Gamble, Zero Base Salary and $8.5 Trillion Market Value Bet

Tesla's board chair Robyn Denholm stated in an interview with Bloomberg that this compensation plan is not just a pay scheme but a bet on Tesla's future over the next decade.

The plan requires Musk to increase Tesla's market value from the current approximately $1 trillion to $8.5 trillion while achieving the following:

• Annual sales of 20 million vehicles

• 10 million full self-driving (FSD) subscriptions

• 1 million Optimus robots and 1 million Robotaxis

• And $400 billion in adjusted operating profit

This plan is divided into 12 milestone targets, and Musk can only earn 1% of shares for each target achieved. If the targets are not met, it equates to no salary and zero returns.

03 Board Bets, Calls Musk a "Generational Leader"

Denholm stated that this is a critical technological transformation, and only Musk can lead the company forward globally. She described Musk as a "generational leader," and the company must strongly support him at this time.

Regarding Musk's frequent political activities over the past year, Denholm responded, "From a personal perspective, his political motivations are determined by himself. The board is focused on his performance as CEO." She emphasized that political activities will not affect Tesla's sales, "In the long run, people will buy the products they truly love."

The plan is designed to separate voting rights from economic benefits, allowing Musk to obtain voting rights in stages only when both market value and operational targets are achieved, and rewards will not be granted immediately but deferred, ensuring his continued commitment to the company's long-term development.

04 xAI Merger Speculation, Future Synergies Under Scrutiny

Market expectations for a merger between Tesla and Musk's AI startup xAI are heating up. Anthony Scaramucci, founder of SkyBridge Capital, stated that as Musk accelerates the integration of AI into his business landscape, the merger between Tesla and xAI "feels inevitable." The shareholder proposal formally suggests that the Tesla board authorize investment in xAI, marking the first time the capital connection between the two companies is included in the official agenda.

More notably, a key clause in Musk's new compensation plan allows for adjustments to performance targets in the event of a "significant" acquisition, which is widely interpreted as paving the way for a potential merger with xAI in the future.

Musk has consistently positioned Tesla as a "real-world artificial intelligence" company, and the Grok large language model developed by xAI has already been integrated into the Optimus robot and some Tesla vehicles. Some analysts believe that a merger could unlock tremendous value and potentially help Tesla achieve its ambitious goal of a market capitalization of $8.5 trillion.

Tesla's stock price has rebounded from a low of $214 this year to $396, an increase of over 85%. This rise, which began with a struggle for voting rights and has been propelled by a ten-year vision, is becoming another collective vote from Wall Street on Musk and his artificial intelligence ambitions.

The shareholder meeting on November 6 will determine whether Tesla's future over the next decade is headed toward an $8.5 trillion market cap or if it will take a detour. Regardless of the outcome, this has already become another critical juncture in Tesla's development history