Tesla Stock Rises as Musk Says 'It's Not About Compensation' and Says $1 Trillion Package Is for 'Safety If We Build 'Millions of Robots'
Tesla's stock has risen following Elon Musk's statement that a proposed $1 trillion performance package is focused on safety and autonomy, not compensation. While supporters emphasize the importance of continuity as Tesla transitions to robotaxis and automation, skeptics raise concerns about the extreme price tag and governance issues. Musk's potential 2025 award could grant him 425 million shares if Tesla achieves an $8.5 trillion market cap. Analysts currently rate Tesla as a Hold, with an average price target of $329.77, indicating a potential 22.6% downside from its current price.
The message landed with investors who want him focused on autonomy, robotics, and manufacturing scale. Supporters argue that alignment and continuity matter as Tesla (TSLA) moves from cars to fleets of robotaxis and factory automation. Skeptics counter that the price tag is extreme and that governance safeguards should not hinge on a single executive.
What It Would Take for Musk to Cash In
If approved, Musk's 2025 performance award could grant about 425 million option-based shares, roughly 12% of Tesla's outstanding stock. The entire grant vests only if Tesla reaches an $8.5 trillion market capitalization. On rough math that implies a stock price near $2,700 and would make the award worth about $1 trillion.
The hurdle is towering and would require flawless execution across vehicles, energy, software, and full self-driving outcomes that translate into cash flow and margins at unprecedented scale.
Why the Vote Is Important
Tesla's next chapter depends on capital intensity and technical risk in autonomy and robotics. Bulls see the proposed award as a high bar that pays only if shareholders are already massively wealthier. Bears focus on concentration of power, dilution risk, and whether governance should rest on financial incentives rather than clear oversight structures.
The company's future mix of car sales, software subscriptions, energy storage, and potential robotaxi networks will determine whether the market even approaches the target embedded in the plan.
Is Tesla a Buy, Sell, or Hold?
Turning to TipRanks, Tesla is still considered a Hold based on 35 ratings assigned by analysts in the last three months. The average price target for TSLA stock is $329.77, implying a 22.6% downside from the current price.
