<div id="readability-page-1"><p><strong>Tesla</strong> <span>(TSLA<span> 2.48%</span>)</span> stock has been treading water lately. Investors are waiting and anticipating news from the company surrounding robotaxis or even progress with its humanoid robots.</p> <p>News about CEO Elon Musk has the stock jumping today, though. Shares popped more than 5% early this morning, and remained higher by 2.8% as of 11:46 a.m. ET.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzIxNTcvbmV3bW9kZWx5Xzc4LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzIxNTcvbmV3bW9kZWx5Xzc4LmpwZyZ3PTcwMA"/></p><p>Image source: Tesla.</p> </div> <h2>Elon Musk could earn $1 trillion -- or nothing</h2> <p>Today's move came after Tesla filed a new pay plan proposal for its CEO. The company wants Elon Musk to focus on Tesla and remain with the company for years to come. It included many incentives to accomplish that goal.</p>  <p>The proposed plan includes 12 tranches for various milestones. Targets include a cumulative 20 million electric vehicles delivered, 1 million robotaxis, and 1 million robots. Tesla has delivered about 7.5 million EVs to date, but no robotaxis or humanoid robots yet.</p> <p>Musk would be awarded 35 million shares, or about 1% of total shares outstanding, by achieving each milestone. The first reward would take effect when Tesla's valuation hits $2 trillion. That would give investors about a double from recent levels. The next nine would each require an additional $500 billion in market capitalization. The last two tranches each require an additional $1 trillion in market cap.</p> <p>Investors are buying shares today, recognizing that owning Tesla stock is a way to gain from Musk achieving the goals in his proposed pay package. From an investor perspective, the important point is that earning full compensation from the plan would require Musk to drive $7.5 trillion of value to shareholders. That would imply a stock price of about $2,675 per share.</p>  <p>There are operational requirements as well. Those include earnings per share goals, 10 million active full self-driving (FSD) subscriptions, as well as the previously mentioned EV and robot goals.</p> <p>Importantly, the operational and market cap milestones must both be achieved for each tranche to pay out. While the goals are quite aspirational, that potential payback has investors buying Tesla today.</p>                                                                            </div>

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<p>Tesla's stock rose over 5% following the announcement of a new pay plan for CEO Elon Musk, aimed at keeping him focused on the company. The plan includes milestones such as delivering 20 million electric vehicles and achieving a market valuation of $2 trillion, with Musk potentially earning 35 million shares for each milestone met. Investors are optimistic about the ambitious targets, which could significantly increase Tesla's market value and stock price.</p>

- Tesla's stock has seen fluctuations as investors await updates on robotaxis and humanoid robots, with shares rising over 5% following news about CEO Elon Musk's new pay plan.  
- The proposal includes incentives tied to milestones such as delivering 20 million electric vehicles and achieving a $7.5 trillion market value, which would significantly increase Tesla's stock price.  
- Investors are optimistic, recognizing that Musk's ambitious goals could lead to substantial returns if achieved, despite the operational challenges involved.

Why Tesla Stock Jumped Friday