The Tesla board is fully betting on Musk, with a target market capitalization soaring to 8.5 trillion dollars.

Recently, there has been considerable attention on TSL (Tesla) regarding the “Musk Ten-Year Compensation and Voting Plan” which will be voted on by shareholders this November. In this regard, Tesla's board chair Robin Denholm stated in an interview with Bloomberg this morning 9/15 that this compensation plan is not just a pay scheme, but also a bet on Tesla's future over the next ten years. From autonomous driving to Bots, AI development to market capitalization challenges, the board has chosen to continue betting on Musk.

Master Plan 4 unveiled, the board supports Musk

On September 1st, TSL released “Master Plan 4” to the public, outlining the company's blueprint for AI, autonomous driving, and Bots for the next decade. In response, Denholm stated that this is a critical technological transformation, and only Musk can lead the company to continue moving forward globally. She described Musk as a “generational leader,” and the company must strongly support him at this time to ensure that the vision for the next decade does not deviate.

8 months of negotiations concluded, zero base salary, rewards only for meeting standards.

The topic turned to the “Musk Ten-Year Compensation and Voting Rights Plan” released by TSL on September 3rd. Denholm stated that the plan took 7 to 8 months of negotiations and over a dozen meetings to complete.

She added that what Musk pursues is a breakthrough and implementation of AI, not money. The proposal requires Musk to pump Tesla's market capitalization from 2 trillion dollars all the way up to 8.5 trillion dollars, with operational goals including an annual production of 20 million vehicles, 10 million paid subscriptions for autonomous driving, and 1 million Optimus Bots and autonomous taxis.

Denholm stated that the board has specifically separated voting rights from economic interests, and Musk can only gradually obtain voting rights, increasing by only 1% at a time, when both market capitalization and operational goals are achieved simultaneously. Furthermore, even if the goals are met, bonuses and rewards such as stocks will not be released immediately but will be deferred to ensure his continued commitment to the company's long-term development.

Voting rights are the key driving force for Musk, with multiple roles as support.

Denholm pointed out that Musk has clearly stated that “voting control” is his biggest motivation. He wants to ensure that TSL is not distorted in key R&D areas such as AI and autonomous driving, so the board designed a mechanism for staggered voting rights, requiring him to focus on the core business of the company in order to gradually gain more influence.

In response to external doubts about his ability to manage multiple companies simultaneously, Denholm believes that Musk's diverse creativity and cross-disciplinary experience are an asset to TSL, and even allows him to take on core positions such as Chief Product Officer in the future, without being confined to the role of CEO. She emphasized that the board's evaluation criteria are solely based on his performance within the company and will not be influenced by political stances.

Successor safety and progress, voting in November will determine the future

Denholm emphasized that this is a ten-year plan, by which time Musk will be nearly 65 years old. She pointed out that the board has established short-term contingency and long-term succession plans, and is continuously cultivating and recruiting talent in AI, engineering, and manufacturing to ensure a smooth transition.

At the same time, the company has prioritized Musk's safety for many years and continues to strengthen protections. She reiterated that as long as TSL can achieve the goal of 8.5 trillion dollars in market capitalization, shareholders will be the biggest winners, and the shareholders' vote in November will determine the direction of the company for the next decade and Musk's leadership position.

The stock price of TSL, (TSLA), has risen from this year's lowest price of 214 USD to 396 USD before the deadline, an increase of over 85%.

(TSL opened at 30 billion USD to retain talent. Can Musk's new contract sustain TSLA? )

This article discusses how the Tesla board is fully backing Musk, aiming for a market capitalization to soar to $8.5 trillion, first appearing in Chain News ABMedia.