Tesla must lean on robots, robotaxis, and investor optimism to reach the $8.5 trillion valuation tied to Elon Musk’s new pay package.
Tesla must achieve a staggering $8.5 trillion market value to justify CEO Elon Musk’s newly approved compensation plan, which hinges on ambitious product and profit milestones.
The package, subject to shareholder approval in November, outlines 12 targets tied to Tesla’s expansion into robotaxis and its Optimus humanoid robots. Musk has a decade to lift Tesla’s current $1 trillion valuation to rival Nvidia and Microsoft combined.
Selling 100 million robots annually or building a robotaxi network surpassing Uber more than tenfold could deliver the required profits, analysts say. Gene Munster of Deepwater Asset Management remarked, “At the end of the day, the reason why this is going to work or not work really comes down to Optimus. It’s a fairy tale, but it’s one that could actually happen.”
Despite declining vehicle sales, ARK Invest projects Tesla could reach $7 trillion–$10.9 trillion by 2029, with robotaxis driving the bulk of revenue.