"She adds that he does not get the reward unless he clears very high hurdles. The proposal from the board would lock Musk in for over seven years. But he would need to grow the company to a market cap of $7.5 trillion, which is about five times where it is today and close to double that of Nvidia, which has the highest market cap of any public company in the world."
"The letter is married to a largely unspoken threat that if Musk leaves, much of his work on artificial intelligence and robotics would go with him. That leaves open the issue of intellectual property. However, he already has one of the world's largest AI companies in xAI. He presumably could simply move his attention to its success. The Musk situation also raises the issue again of whether Tesla is a car company or one with a future based on AI or robotics. Tesla's market cap is $1.5 trillion, while Ford's is $53 billion."
"A truly self-driving car is on Tesla's horizon within the next year or two, it would seem. The same is so of a robot that can perform many human tasks. Skeptics believe Musk can deliver neither, or that rivals will soon crowd these markets. No one can predict what will happen if Musk leaves. It is difficult to see the skills of people just below him in the company. They are overshadowed by the brightness of Musk's star."
Robyn Denholm’s letter conditions a large, $1 trillion incentive on Elon Musk meeting extremely high performance hurdles. The board’s proposal would bind Musk for over seven years while requiring Tesla to reach a $7.5 trillion market capitalization. The letter implies that Musk’s departure could remove significant AI and robotics work and raises intellectual property concerns, though Musk already leads xAI. The situation intensifies the debate over whether Tesla’s future is automotive or AI/robotics driven. Expectations include near-term self-driving and humanoid robotics, but skeptics doubt delivery and worry about succession risk and rival competition.
Read at 24/7 Wall St.
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