At its core, Elon Musk’s new ten-year incentive plan is a strategy to make Tesla not just a market leader, but a globally systemic, “too big to fail” institution. The $8.5 trillion valuation target, if achieved, would signify a level of market dominance and integration into the global economy that is currently unparalleled.
Reaching this goal would require Tesla to become the undisputed leader in multiple, critical industries of the future: electric transportation, renewable energy, artificial intelligence, and robotics. Its technology would be embedded in the daily lives of billions of people, from how they commute to how goods are manufactured and delivered.
This level of dominance would give Tesla immense pricing power, a deep competitive moat, and significant influence over government policy. It would become an enterprise whose health is critical to the global economy, much like major financial institutions are today. This is the ultimate form of long-term security for the company.
The trillion-dollar package for Musk is the board’s proposed tool to achieve this state of unassailable dominance. They are betting that he is the only leader who can navigate the company to this destination, thereby securing its future for generations to come. The plan is not just about getting bigger; it’s about achieving a state of corporate immortality.