Wall Street is now reacting to Tesla (NASDAQ: TSLA) CEO Elon Musk’s massive performance-based pay proposal, valued at $1 trillion.
The plan links Musk’s payout to market valuation milestones ranging from $2 trillion to $8.5 trillion, alongside ambitious operational goals. Notably, the shares would vest over a period of up to ten years, provided that Musk remains in a leadership role.
Now, according to Baird analyst Ben Kallo, who reiterated a ‘Neutral’ rating on Tesla with a $320 price target following the announcement, the package points toTesla’s ambition to evolve beyond an electric vehicle manufacturer.
The milestones extend into artificial intelligence (AI), robotics, and autonomous driving.
Kallo noted that operational targets such as one million robotaxis and humanoid robots highlight Tesla’s long-term strategic pivot, though he cautioned that the feasibility of these goals remains highly uncertain.
Tesla’s Master Plan
Tesla’s latest Master Plan, released alongside the package, emphasizes a vision of “sustainable abundance” driven by large-scale electrification and AI-powered technologies.
“TSLA also unveiled the next step in its Master Plan outlining a pathway to sustainable abundance. Both the incentive package and Master Plan will likely be central pieces of the shareholder meeting on November 6 and we expect Musk will discuss longer-term opportunities. That said, we maintain our cautious stance near term,” Kallo said.
In the near term, Tesla continues to face persistent headwinds, including slower EV demand growth, intensifying competition from Chinese automakers, and ongoing questions surrounding the commercialization of Tesla’s Full Self-Driving software.
TSLA stock price analysis
Meanwhile, Tesla stock is seeing renewed interest in the short term after reclaiming the $350 support zone.
At the close of the last session, TSLA shares stood at $350.84, ending the day up more than 3%. Despite this short-term upside, the equity remains down over 7% year-to-date.
Notably, for Tesla to target higher levels, the key task remains holding above the $350 mark.
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