Back in 2018, Elon Musk and Tesla (NASDAQ:TSLA) proposed a compensation plan that was just about as insane as the vehicles that the company produces. Dubbed as one of the most radical CEO payment plans in corporate history, it required Musk to hit a series of market cap and operational targets before he is compensated. If he succeeds, he is paid heartily, making him one of the wealthiest persons in the world by net worth. If he fails, he gets nothing.
“If all that happens over the next ten years is that Tesla’s value grows by 80 or 90%, then my amount of compensation would be zero,” Elon Musk said, describing his payment plan to The New York Times.
A dozen Market cap targets were set, each $50 billion more than the next, starting at $100 billion and so on. Revenue and adjusted profit goals were also established. For each tranche that is achieved, Elon Musk would have the option to purchase about 1% of Tesla stock at $70 per share. Considering that Tesla’s market cap only stood at $59 billion then, the ambitious compensation plan was dubbed as laughably impossible by critics.
“Mr. Musk’s critics — and there are many — are likely to contend that the new compensation plan is just the company’s latest publicity stunt. He has been called a modern-day P.T. Barnum who has created the illusion of success while consistently missing production estimates. The company continues to lose money; at one point last year, it was losing almost a half-million dollars an hour… Jim Chanos, a short-seller who has bet against Tesla’s shares — and has thus far been on the losing side of that trade — has contended that Tesla is worthless,” the NYT wrote then.
That was just over three years ago.
In a securities filing last Friday, Tesla noted that Elon Musk had achieved 6 of his 12 operating targets, and two more were probable soon. A good number of these targets reflected an adjusted version of earnings before interest, taxes, depreciation, and amortization. Two others represented revenue targets. As noted in a report from The Wall Street Journal, Tesla had also reached 11 of Elon Musk’s 12 market cap targets.
This is incredibly impressive considering that Musk’s 10-year performance award is only in its third year. The long-term plan was designed for a 10-year period, and even Musk, in a statement to the NYT, spoke of a decade-long timeframe when he described his performance award. “I actually see the potential for Tesla to become a trillion-dollar company within a 10-year period,” he said.
While his net worth will radically increase due to his Tesla performance award, Musk could not simply sell his shares and disappear. Under the terms of his payment arrangement, even once his TSLA shares vest, Musk would have to hold them for an additional five years before he is even allowed to sell them. And as per Elon Musk’s previous statements, this is something that he does not intend to do.
Musk’s 10-year Tesla performance award is arguably one of the most shareholder-friendly executive payment plans in the market. Other companies typically install outsize packages that often come at the expense of shareholders because executives are compensated even if they underperform. Tesla’s all-or-nothing plan for Elon Musk, on the other hand, greatly benefits shareholders as their holdings will increase in value as Tesla hits its market cap goals. This is great for long-term shareholders who hold the stock, as well as Tesla employees, as they receive TSLA shares when they are employed by the company.
At the end of December, Elon Musk owned about 22.4% of TSLA’s outstanding shares, up from 20.8% a year earlier. Tesla also has a market cap of $683.42 billion as of Friday’s close.
Disclaimer: I am long TSLA.
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News
Tesla confirms Robotaxi is heading to five new cities in the U.S.
After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.
Tesla Robotaxi will hit five new cities in the United States in the coming months, the company confirmed.
After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.
The Robotaxi suite is a ride-hailing service Tesla offers, but the details of it change with each jurisdiction, as regulations vary. For example, in Austin, Tesla can operate the Robotaxi suite without anyone in the driver’s seat, as long as the vehicle does not enter a freeway.
Credit: Tesla
In the Bay Area, a Safety Monitor rides in the driver’s seat, essentially acting as the vehicle operator with Full Self-Driving controlling the car.
The local regulations and how Tesla handles them will continue to be a relevant part of the discussion, especially as the company aims to expand the Robotaxi program to different areas. This has been a primary focus of the company for several months, especially within the United States.
CEO Elon Musk said that Tesla was aiming to launch Robotaxi in Nevada, Arizona, and Florida. However, the company detailed five specific cities where it will launch Robotaxi next during the Annual Shareholder Meeting on Thursday.
Tesla will launch Robotaxi in Las Vegas, Phoenix, Dallas, Houston, and Miami next, broadening its Service Area for the suite to more major cities across the U.S.
It has said it plans to offer the service to half of the U.S. population by the end of the year, but it does not seem as if it will expand to more than a handful of cities this year, which is still tremendous progress, all things considered.
As far as autonomy is concerned, Tesla has always had lofty expectations and has made some even loftier statements.
At the Shareholder Meeting, Musk said that the company would likely be able to enable vehicle owners to text while the vehicle drives, alleviating them from potentially having some of the responsibility they have behind the wheel.
Tesla says texting and driving capability is coming ‘in a month or two’
It is not confirmed that Tesla will roll this out in the next few months, but Musk said there is a possibility.
News
Tesla launches another new Model Y trim at a bargain price with massive range
It is the second most-affordable Model Y trim level in China, trailing the base Rear-Wheel-Drive and coming in under the All-Wheel-Drive.
Tesla has launched yet another new Model Y trim level, but this time it is in China, and it is at a bargain price.
It also has an insane range rating.
On Friday, Tesla launched the new Model Y Long Range Rear-Wheel-Drive in China, priced at 288,500 yuan ($40,500), an incredible deal considering it is not a stripped-down version of the vehicle like the Model Y Standard.
🚨🚨 Tesla’s new China-launched Model Y LR RWD offers 821 km (510 miles) CLTC range with 78.4 kWh CATL battery, beating AWD’s 750 km.
At 288,500 yuan ($40,500 USD), it fits between base RWD (593 km, 263,500 yuan) and AWD (313,500 yuan) for affordable long-range EVs.
CLTC… https://t.co/rhKVzvUWlu pic.twitter.com/ZOoelziJ8T
— TESLARATI (@Teslarati) November 8, 2025
It is the second most-affordable Model Y trim level in China, trailing the base Rear-Wheel-Drive and coming in under the All-Wheel-Drive.
The big appeal with this new Model Y trim is obviously its price, but its range rating is also one of the best we’ve seen. Rated at 821 kilometers on the CLTC scale, it converts to 510 miles. It uses a 78.4 kWh CATL battery.
Converted to real-world range, however, that 821-kilometer range rated by the CLTC actually is equivalent to about 357 miles on the EPA scale, which is still a very respectable number and comes in at a higher range than the Long Range All-Wheel-Drive configuration that is available in the U.S.
Tesla has truly brought a wide variety of Model Y trims to the Chinese market, including a new Model Y L configuration that features a slightly longer wheelbase, as well as additional interior features like extended thigh legrests and captain’s chairs with armrests.
It is unclear whether Tesla will bring a Premium Rear-Wheel-Drive option of the Model Y to the U.S., especially as it has already rolled out four configurations of the all-electric crossover in the market. With the new Standard offerings, Tesla will likely keep its lineup as simple as possible.
However, the company has hinted that there is a slim possibility the Model Y L could come to the U.S. sometime late next year, but CEO Elon Musk said that it is not a guarantee.
Tesla is more concerned with self-driving efforts in the U.S., and despite calls from customers for larger vehicles, it does not seem concerned with making them available, at least not for now.
News
Tesla Model Y Performance set for new market entrance in Q1
The lightning-fast trim level of the all-electric crossover packs a variety of new improvements, including more range and better acceleration, thanks to aerodynamic improvements and other performance-based changes.
Tesla’s new Model Y Performance is set to arrive in a new market in Q1 2026, a company executive confirmed on Friday.
The lightning-fast trim level of the all-electric crossover packs a variety of new improvements, including more range and better acceleration, thanks to aerodynamic improvements and other performance-based changes.
It was initially launched in Europe, and then it made its way to the United States. However, it will soon be available in a new market: Canada.
Raj Jegannathan, a Tesla executive, confirmed on Friday that the company would be bringing its Performance trim of the Model Y to the Canadian market early next year:
Q1
— Raj Jegannathan (@r_jegaa) November 8, 2025
Interestingly, the Model Y Performances that enter the Canadian market will likely come from Gigafactory Berlin and not Gigafactory Texas, even though it is logistically more advantageous.
There is a 25 percent tariff on U.S.-built vehicles currently, and Tesla has been sending Germany-built Model Y vehicles to Canada to avoid this and keep prices reasonable for customers.
Some Model Y owners in Canada have already confirmed that their units came from the German production facility, not the United States.
Model Y Performance deliveries have not yet started in the United States, but are slated for late November or early December.
Tesla refined the Model Y Performance’s exterior design with new front and rear fascia designs, a new performance carbon spoiler, 21″ Arachnid wheels and tires, and adaptive damping to help with better handling.
There are also new Drive Modes for better control during high-speed driving.
It also packs the same improvements as the new Model Y features over its predecessors, including acoustic glass and premium sound-damping materials for a quieter cabin, and heated and ventilated front sport seats.
In the United States, it is priced at $57,490. It will very likely be higher in Canada due to logistics costs and other factors.
Tesla confirms Robotaxi is heading to five new cities in the U.S.
Tesla launches another new Model Y trim at a bargain price with massive range
Tesla Model Y Performance set for new market entrance in Q1
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