Hustler Words – Tesla’s proposed $1 trillion compensation package for Elon Musk, detailed in the company’s annual proxy statement filed with hustlerwords.com, presents a fascinating case study. While the board champions this as a plan to create "the most valuable company in history," a closer look reveals that many benchmarks are significantly less ambitious than Musk’s own past, often-broken, pronouncements. This begs the question: is this a shrewd business strategy or a cleverly disguised attempt to manage unrealistic expectations?
The ten-year plan, awaiting shareholder approval in November, sets ambitious, yet arguably scaled-down, targets. One key example is the 20 million vehicle delivery goal. Musk previously boasted of 20 million annual production by 2030, a target abandoned after sales growth faltered. The revised plan, however, merely requires 20 million total vehicles delivered by 2035 – a far less demanding feat, given Tesla’s current production rate.
Another notable shift concerns the robotaxi ambition. Musk’s 2019 prediction of one million robotaxis on the road by 2020 remains a distant dream. The new compensation package, however, "only" requires a daily average of one million robotaxis commercially operated over a three-month period. The definition cleverly includes customer-owned vehicles utilizing Tesla’s Full Self-Driving software, a technology yet to reach its promised capabilities.
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The Optimus humanoid robot, another cornerstone of Musk’s vision, also receives a similar treatment. While Musk recently projected Optimus could generate 80% of Tesla’s future revenue, the compensation plan merely necessitates one million "bots" (defined broadly to include any AI-powered mobile product) by 2035. This significantly lowers the bar from his previous prediction of one million units annually by 2029.
The final product goal – 10 million active Full Self-Driving (FSD) subscriptions – is perhaps the most ambitious. Given the current adoption rate is reportedly in the "teens," this represents a substantial leap.
Beyond product goals, the plan hinges on Tesla achieving an $8.5 trillion valuation and $400 billion in annual earnings – figures that dwarf current performance. These targets, while immense, pale in comparison to Musk’s earlier claims of surpassing the combined value of Apple and Saudi Aramco, or even exceeding the next five most valuable companies.
The agreement also includes stipulations for Musk’s succession planning and a reduction in his political involvement. While previous compensation deals, deemed outrageous at the time, were ultimately met, the current proposal undeniably reflects a recalibration of Musk’s often-unrealistic pronouncements. Whether this represents a pragmatic adjustment or a strategic softening of overly ambitious goals remains a topic of debate. The November shareholder vote will be crucial in determining the future direction of Tesla and the extent to which Musk’s vision will shape its trajectory.
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