Tesla Proposes a Trillion-Dollar Bet That It's More Than Just Cars

For a while now, [Tesla](https://www.wired.com/tag/tesla/) CEO [Elon Musk](https://www.wired.com/tag/elon-musk/) has seemed awfully distracted. His past few years in non-Tesla activities include: [buying](https://www.wired.com/story/elon-musk-owns-twitter-deal/) and [renaming](https://www.wired.com/story/twitter-dead-x-elon-musk/) Twitter; [going all in](https://www.wired.com/story/elon-musk-trump-donations/) on President Donald Trump’s [election campaign](https://www.wired.com/story/elon-musk-peanut-the-squirrel/) and then an [obscure Wisconsin Supreme Court race](https://www.youtube.com/watch?v=6a-Jto_yTYE); a lot of [babymaking, plus attendant drama](https://www.wsj.com/politics/elon-musk-children-mothers-ashley-st-clair-grimes-dc7ba05c?gaa_at=eafs&gaa_n=ASWzDAjDWaL-KH5xCAVAo8flUiWt5vGIE6vdIjB7_c0dcA4tYm0xTDRBPQqYb7GiGkQ%3D&gaa_ts=68bb45be&gaa_sig=GSDPVZ8mcV0RDbjGBp8YLihZn4TEjWM0lWQLyRd0nIp4I994ce8VYU1MQ7XW1sKfFXj2SuoDpvA4-vTLWHvEGQ%3D%3D); and months spent standing up the so-called [Department of Government Efficiency](https://www.wired.com/tag/doge/). Meanwhile, Tesla sales have [slid](https://www.wired.com/story/whats-driving-teslas-woes/) as the electric-car maker faces fierce [competition from Chinese manufacturers](https://www.wired.com/story/electric-vehicles-china-takeover/) and rejection from buyers [turned off by his politics](https://www.wired.com/story/tesla-takedown-definitive-story/). Now a new and unprecedentedly gigantic $1 trillion pay package proposal from the Tesla board will attempt to recenter Musk’s focus on the automaker. Maybe “automaker” is the wrong term: For years now, Musk has argued that Tesla should be valued as an autonomous vehicle and robotics firm. He has said that the earning potential of those products—their potential to change the global economy—would justify eye-wateringly high numbers. “Extreme execution is needed, but a valuation of $20 trillion for Tesla is possible,” he [posted](https://x.com/elonmusk/status/1948679196265644064) in July. That’s five times the value of the current market-cap leader, Nvidia. The goals set out in the proposed pay package, which will have to be approved by shareholders in November, would force Musk to spend the next decade turning that big talk about robots and robotaxis into actual execution. In turn, Musk could become the world’s first trillionaire. Read the full story here: [https://www.wired.com/story/elon-musk-trillion-dollar-tesla-pay-package/](https://www.wired.com/story/elon-musk-trillion-dollar-tesla-pay-package/)

Keep stacking the jenga Elmo. The toppling will be glorious.

TSLA is the product at this point. Just when I think there couldn't be more to the grift, they keep coming up with new distractions to take the focus off plunging car sales, lack of progress in robotaxis (despite Waymo success) and vaporware robots... Promising huge returns on the basis of a small "investment" without a clear plan is the basis of all modern financial scams.

So he'll just commit a ton of fraud and declare it a success per usual?

$1T for a part time job. Where do I sign up for this?

I'd do it for $250k/yr.

They’re betting on a government bailout when it crashes.

Don't sell yourself short.

Don't sell yourself short, even $1 billion a year is a bargain Edit: Changed from million to billion

[Relevant Silicon Valley scene](https://youtu.be/YZFTaEenaHM?si=Y1zJwhEwdbmUjc3_)

Nice one. Love that show!

I couldn't even spend that! But 1 billion a year, I could help out a lot of folk in my area. Didn't Felon Husk once promise to end hunger? Before he decided to just collect more money than anyone could use?

Okay, 275.

That's not gonna go in his favor. You forget how many people hate him. As a kid when the big 3 got bailed out, it didn't set right with me. At least it was more than one automaker that got bailed out by having to divest. Biden did right by not bailing out that venture capital bank. Trump would have bailed it and more.

Atta boy.

Said it a thousand times this idiot company is getting bailed out and all of the shitheads that invested in it with my money

Literally this guy is laughing at everybody why do you think he always has a smirk on his face

Not a car company not a full self driving company robot that is the stupidest thing I’ve ever heard you should stick to the cab company and diners

The government won't care about Tesla because it's nowhere near "too big to fail." It doesn't employ many people and the brand may not even by valuable in an acquisition. SpaceX on the other hand, is a different matter. The DoD will nationalize the company in short order if a suitable acquirer can't be found--which is extremely unlikely since every giant defense company would be interested in it.

I'd be pleasantly surprised if he is dead or rotting in a prison in 10 years.

Their hottest commodity is steaming hot BS

Meh. A government takeover of SpaceX would be small potatoes by comparison to Tesla.

Tanking sales and snorting ketamine? I think I’ll manage

It’s what he knows.

Future Narrator: "It wasn't."

TABLES!!!!!!!!!

To end his hunger…

they bailed out the manufacturers because there are more than just jobs at stake - they're more pillars of american industries + parts globally, we may not like it as we don't see their political strengths, but you can't let your partners die

this is truly the dumbest board in history if they give Elon $1 trillion pay package

A fairly valued Tesla would be worth perhaps 100-150 billion (32 of that is cash on the books) SpaceX is now valued at 350 billion in private placements. Way overvalued IMO (annual revenues are around 10 billion, and its probably never made quarterly profit), but its very plausible that SpaceX will have a higher market valuation than Tesla in the next 2-3 years.

Musk is just tryon to syphon off as much money as possible before Tesla goes bankrupt.

Apple. A real company. Had 93 billion in net income last year. So musk wants 10+ years of all of the income of apple, personally. This tracks.

Remember when he tweeted at an aid organization that if they could come up with a plan to end world hunger with his money, he’d do it? And then they responded with a plan and he ghosted them?

Something is very fishy about this. I find it hard to believe there are members on the Tesla board who aren't aware of the irreversible damage Musk has caused the brand, the mountain of broken promises, political ambitions and ridiculous fantasies of life on Mars with a robot in every household BS. Tesla doesn't have a trillion dollars and the hype will never get it to a valuation where they could pay him it. 7.5 years is a long time, Musk will ruin Tesla if given 25% of it in no time with his poor decisions and corruption. This looks like either an attempt to leave him to his own devices floundering about on a sinking ship or push him out now and try salvage what's left of Tesla without him. I think someone needs to interview James Murdoch ASAP not only over this very odd plan with Musk and Tesla but also the Murdoch family squabble for Murdoch empire. He hasn't been interviewed since February and has sold a mountain of TSLA since.

Yeah. Tesla isn't a car manufacturer. Tesla is a stock price manufacturer.

The government will make up a reason to care if he continues to pour money into rigging elections for the GOP. This is an oligarchy, protecting the billionaires who back the system above all else

I’ve seen some dumb shit in my time, but goddamn this is some dumb shit.

Exactly - except that you’re still too high on TSLA by a factor of ~40-50.  Tesla would be bailed out at something wildly overvalued. SpaceX would be bailed out at something much closer to its intrinsic value.

I think he pledged to help Flint, Michigan..?

Tesla is a stock manipulation manufacturer.

I wouldn’t be surprised if he is dead in 10 years. Dude apparently has a suit case of pills he takes everywhere he goes. It’s a rumour I buy based on how he acts.

Ya, for it to make sense. This company would need to be a ten trillion dollar company. Or 3 apples. It’s just comical at this point.

Well, I was assuming a level of sanity that, as you point out, may no longer exist. Good point sir.

These numbers are bonkers insane. They think that Tesla will be worth more than the entire GDP of Germany and the UK combined? Hype machine is getting desperate from failing fundamentals these days. Even the board is bought into the idea of “Hyper Narrative = Truth.”

This is all another media marketing scheme to maintain the illusion that Tesla will actually achieve any of these things some day. This is supposed to give investors a sense of optimism but it’s just more snake oil from the world’s biggest douche. Imagine driving around a Tesla everyday and knowing you’re supporting this clown and making him the wealthiest person on the planet… idk, couldn’t be me.

I wouldnt doubt it. The guy is high 24/7.

Yep. Over at r/teslainvestorclub they are all for the pay package and somehow think tesla is going to be valued at 8.5 trillion. Its a cult, just like maga.

The only way it's "more than just cars" is if Musk wins some kind of giant government subsidies from Trump, because it's sure as hell obvious that barely anybody in the free market wants his robots or any other of the BS he's selling. He's essentially betting on a massive theft of money from the US taxpayer in return for what is probably going to be rigging another election.

1 trillion con Is that the highest paid bullshit ever per word spoken?

A ton of mom and pop shops who had been suppliers to the big three for the better part of a century would’ve gone belly up if even one of them went belly-up.

Quick back of the napkin math. . . Elon already owns 500 million shares of Tesla, this new bonus package is worth 425 million shares if the company hits market cap of $8.5 Trillion. * **A**ssuming Tesla hits a market cap of $8.5 Trillion * **Without new package**: ≈ **$1.3T** * **With new package**: ≈ **$2.5T** * **Difference**: ≈ **$1.2T more** Honestly, whats the point . . . I remember hearing the whole "Elon works for free" crap. . . But when you own >10% of a company with >$10 Billion Market cap. I am sorry but you are not working for free, you are fairley compensated. Long story short. . . Elon's only trying to build his ego with this move, because he already has more than enough money to do whatever he wants if he can actually make Tesla worth $8.5 Trillion.

Reminds me of Microstrategy. . . taking money to buy bitcoin is not a company, it is a middleman or a bank at best.

Unfortunately, it seems he has a lot of time to pivot. He's already arguing with Big Oil folks in public who are saying wind energy doesn't work for example. I truly hope people's memory doesn't prove to be as disappointing as it has been. But history shows...

Dude is planning on starting an entire planet. If this goes through I guess that's it. It's his final bet? I'm guessing this is a way to hedge against all smaller suppliers he stole from.

Are you serious 😭

How much longer can this go on for

Without watching/reading/listening to how actions impact others, many just look out for themselves. GOP is the perfect example of how individualistic think always ends up. Im not looking forward to the re-run of history we have been living through.

Yo today I was just thinking how things are feeling like 2016 again........

I don’t understand why they want him full time The ONLY design from Musk that has been built is the CyberTruck