Tesla’s Trillion-Dollar Pay Package for Elon Musk: A Strategic Gamble
Tesla's board has proposed a compensation package for CEO Elon Musk that could exceed $1 trillion in value, a figure that initially appears staggering but warrants closer scrutiny. The package, structured around performance-based milestones, underscores the company's reliance on Musk's visionary leadership to sustain its premium valuation.
Unlike traditional automakers trading at single-digit P/E ratios, Tesla commands a trailing P/E of 200—a premium fueled by Musk's ambitions in autonomous vehicles and robotics. The 12-tranche stock award system ties compensation directly to operational targets, including the ambitious goal of 20 million cumulative vehicle sales within a decade.