Tesla's Musk Pay Package Restored, Potential Value Reaches $120 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
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Source: Newsfilter
- Pay Package Restoration: The Delaware Supreme Court reinstated Musk's 2018 compensation plan, previously deemed 'unfathomable' by a lower court, enabling Musk to finally receive pay for his transformative work since 2018 while restoring Delaware's business-friendly reputation.
- Equity Incentive Value: The plan allows Musk to acquire approximately 304 million Tesla shares at a discounted price, with an estimated value of $56 billion in 2018, which surged to around $120 billion by November due to stock price increases, highlighting Musk's direct contribution to Tesla's success.
- Shareholder Voting Impact: Tesla's board faced lawsuits that delayed Musk's stock options, and the court's ruling revealed conflicts of interest among directors, leading to the plan's rescission and exposing vulnerabilities in corporate governance.
- Future Compensation Plans: The new pay package approved in November could be worth up to $878 billion if Tesla meets targets for self-driving vehicles, a robotaxi network, and humanoid robot sales, demonstrating the company's ambitious vision for future technological advancements.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 416.560
Low
25.28
Averages
401.93
High
600.00
Current: 416.560
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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