Elon Musk's $1 Trillion Payday Is Why Tesla Is the Top Stock Pick for 2026
Elon Musk’s compensation plan could drive Tesla to new heights.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
About 30 years ago, I was hired in the financial services industry. My entry level position paid a very low salary. Any other income would be earned via commission.
A 12-hour workday wasn’t only expected, it would be necessary.
The message was clear: you would sink or swim on your own. Start swimming as hard as you can, right now, or get out. Nobody was coming to rescue you.
The Other End of the Spectrum
While such arrangements aren't unusual for Wall Street employees in an entry-level position, it’s extraordinarily rare at the other end of the spectrum. CEOs receive lucrative pay packages, regardless of whether the shareholders sink or swim.
Unlike most CEOs, Elon Musk’s recently approved compensation package includes no salary. Instead, Musk’s compensation will be entirely performance-based.
We recently rolled out our new price target for one of Musk's companies, Tesla (TSLA) . The stock has gained about 28% year-to-date, after climbing 62% in 2024 and 101% in 2023.
Musk’s Compensation Package
Musk will score $1 trillion if he can eventually push Tesla’s market capitalization to $8.5 trillion. As of this writing, Tesla’s market cap stands at $1.5 trillion.
In order to reach that $8.5 trillion target, Tesla shares need to rise by about 560%. That would place the stock above $2,500 per share.
I’m not saying that Tesla will hit $2,500 anytime soon. I am saying that Musk wouldn’t have set that target if he didn’t believe he could reach it. In general, betting against Musk has been a losing proposition.
Tesla’s Road to Success
How will Tesla make this journey? It begins with self-driving. Tesla’s FSD 14.2.2 is getting rave reviews. Sometime during 2026, fully automatic driving should become a reality.
Shares of ride-share giant Uber are already reacting negatively to the positive reviews for FSD 14.2.2. Robotaxis, which are basically automotive robots, are currently being tested in Austin, Texas without human intervention.
In order to receive full compensation, Musk must put 1 million Robotaxis on the road.
Speaking of robots, there has been little substantial news about Tesla’s Optimus robot in recent weeks. One of the performance metrics Musk must reach in order to earn his full compensation is to put 1 million Optimus robots into service as well.
Bottom Line
Would you bet against Tesla putting 1 million Robotaxis and 1 million Optimus robots into service? If Tesla makes major inroads into the ride share market in 2026, would it come as a surprise?
Will you be shocked if Musk eventually drives Tesla’s market cap to $8.5 trillion?
These are lofty goals, but lofty goals are the ones worth achieving.
Betting against Musk has been a losing proposition. That's why this stock should be owned in 2026. Over the years, we’ve come to expect cutting edge innovation from Tesla, and we’re rarely disappointed.
At the time of publication, Ponsi was long TSLA.
