“Yes, you read it correctly.” Few stock exchange updates contain such lines, but on the other hand there are few companies Tesla (NASDAQ: TSLA).

This quote refers to the salary package, which, how to ensure specific conditions, would make Elon Musk Trylionaire. Nice work if you can get it.

These conditions, however, are demanding, including the sale of 20 million Tesla vehicles, 1m robotaxia, 1m robots and increasing the value of Tesla shares to 8.5 -TRN in a decade. A market capital of about USD 1% on the announcement of the contract would mean the transfer of 750% refund to shareholders.

Although these goals may seem unbelievable, this is not the first Muska rodeo. He crashed the last round of goals, in this process in the female frigid USD 56 billion. Markets also liked the messages, and the price of the shares increased by 3.64% during the day. The most critical question for me: Is this a kitty in hell that this is happening?

Challenge

The scale of the challenge here is huge, and this may not be understood. Tesla already has a stretched valuation. It trads over 200 -earnings and over 100 -earnings ahead. Compare the figure to other wonderful 7 luminars, such as Nvidia at 40 or Alphabet at 24.

A company based in Austin, which would meet market capital worth 8.5TrN, would require outrageous earnings. Taking the place of mathematics at the back, last year earnings of $ 8 billion would have to boost to around $ 200 billion if the valuation lower to the level of these other great technology companies. Tesla is already a company with a trillion dollars, but it aims to multiply profits twenty or more!

Some hope?

Hope, however, may be associated with forever. The basics of optimism can consist of Musk’s achievements. When he is not involved in controversial political things, he has the habit of doing special things with companies.

The domination of Tesla on the electric vehicle market was spectacular before Chinese companies began to catch up. Spacex has a similar dominance in its field. About 90% of the shipping load to space is supplied by a space company Musk. This is not 90% for the US, it is 90% for the whole world.

Because Tesla has a finger in cakes such as robotics, electric vehicles, independent technology and more and more artificial intelligence through XAI, the company has many areas to dominate the technology that changes the world over the next decade.

For these reasons, I think that it is worth considering actions and why I am the owner of the action myself. A reservation that I would not like to exposure too much to these speculative growth supplies with valuations in front of the eyes. In the event of a stock market failure or correction of this type of shares, they have a long way to fall. However, in the case of Tesla I think it’s worth it. Actions can even find this outrageous 8.5 -TN target.