Name: If you are a TESLA shareholder….GET READY
Uploaded: 2025-09-16T17:57:39.000Z
Duration: 9 min 46 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Adverbs of degree

If you are a Tesla shareholder, you are probably very happy because Tesla stock has grown by about 20% in just a couple of days just because everybody found out that Elon Musk purchased about a billion dollars worth of Tesla stock.

I think Tesla has been one of the best performing stocks over the last 6 months.

Since April of this year, it has grown by about 100%.

People keep saying that Tesla is going to collapse.

I think at this point, Wall Street will never ever again bet against Elon Musk.

Because they have lost so much money shorting Tesla that I don't think they have lost on any other stock.

But if you are a Tesla shareholder, then you are probably glad about it.

Now the real question is that why exactly Elon Musk suddenly purchased a billion dollars worth of Tesla stock.

Because it is literally his biggest purchase of Tesla stock in a very long time or maybe the entire history of the stock.

There are actually potentially two real reasons.

The first reason is, you might not actually believe this, but I think it is probably the only reason.

But there is a second reason we are gonna talk about that.

First of all, Elon Musk suddenly found out that he is no longer the richest person on the planet.

So maybe he decided that I have to restore my status as the richest person in the world and by buying those stocks, maybe it is going to literally push the price up.

Because if you are literally seeing the guy who is running Tesla buying a billion dollars worth of the stock of the company that he is running, you are actually making conclusions.

You are thinking, he has so much faith in his own company, so probably we should buy it as well.

So that restores so much faith into Tesla, which is one of the fundamental reasons why Tesla stocks started to grow so much.

But there is a second reason, and it's Elon Musk's compensation package to grow Tesla to almost 10 trillion dollar company.

And in the process, he will have a trillion dollars.

He is not going to receive any kind of cash, he is not going to receive any kind of bonuses.

Simply every single time that he is going to achieve a certain milestone, he will be granted a single percentage of Tesla.

Of course, Tesla stocks by that time will be diluted to a certain point, but overall, if you count it based on today's number, it is going to worth around a trillion dollars.

Finally, we are going to have the first trillionaire, because it's about almost a trillion dollars, something around 975 billion dollars.

And he will unlock every single milestone each time he unlocks and achieves a certain milestone that was put in front of him by the board of directors.

He will receive a single percentage every time that he achieves a certain milestone, which means that in a couple of years from now, we are going to see Elon Musk as the first trillionaire.

It might seem unrealistic that Tesla is turning into one huge bubble.

However, this compensation makes a lot of sense.

First of all, he has to increase the market cap of Tesla to about 2 trillion dollars, which is not an easy job, just recently it was about 1 trillion dollars, so he literally has to double the valuation of Tesla.

He also has to increase the EBITDA of their company to about 50 billion dollars.

Now EBITDA is earnings before interest, taxes, depreciation, and amortization.

And to reach this number, Tesla has to increase their sales to about 250 to 300 billion dollars.

It literally depends what's going to be the margin of EBITDA on their sales.

The second milestone is 2.5 trillion dollars at 75 billion dollar EBITDA and so on and so forth.

And finally, at stage 12, he has to increase the market cap of Tesla to about 8.5 trillion dollars where its EBITDA is going to be 400 billion dollars, which means that sales of Tesla should be something between 2 to 2.7 trillion dollars.

Imagine for a moment, we don't have a single company in the world today that has so much sales.

The only two companies that have huge revenues is Amazon and Walmart.

And that's because they are resellers, they are buying stuff and they are selling, and the cost of their goods for these companies is extremely huge.

Even if you take for example Tesla and you compare it to Apple, Apple's EBITDA is about 140 billion dollars and the valuation of Apple is about 4 trillion dollars.

Now, Nvidia's EBITDA is slightly lower at about 100 billion dollars, but its valuation is about 4.2 trillion dollars.

So Musk's compensation package is very similar to the valuation of businesses that we have in the market today, but they are slightly overvalued because Nvidia, I mean, it's not like extremely overvalued, but it richly depends on how much you believe Nvidia is going to make, how fast their revenues are going to grow.

I mean, we have estimates that Nvidia's sales will grow to a trillion dollars in the next five years.

I mean, there is a possibility of that because they have full monopoly on the AI chips.

I don't think a single company is going to compete with them at least in the next three years.

And if you want a full breakdown of Nvidia and how much possibly they can make and what's their true valuation, I have done a full breakdown for our investors in our community of investors which link you can find out in the description of this video.

This is not the first time that Elon has received such compensation package.

The 2018 compensation package was very similar, but at that time, it was a much more difficult job.

The valuation of Tesla was at about 50 billion dollars.

So the board basically tell him, listen, if you double Tesla's valuation to 100 billion dollars and you grow the Nvidia to about 1.5 billion dollars, you are going to receive an extra percentage point.

So it's very, very similar that over the course of achieving every single milestone, he will get about 12% of Tesla.

But because the shares of Tesla get diluted every single time that Elon is going to receive those shares, the number, I mean, he doesn't have like, I mean, he didn't get exactly 12% of Tesla because they got diluted.

His overall stake at Tesla today is about 13%.

It's insane to think that in 2018, Tesla's valuation was at about 100 billion dollars and his final achievement is supposed to be like a 600 billion dollar valuation with a bid of about 14 billion dollars.

He did it way faster than most people imagined.

Like in 2018, the compensation package was created.

By 2021, he literally just achieved everything and got his like 56 or 70 billion dollars.

So there is literally a realistic scenario where Elon is going to achieve the same milestone for Tesla in two to three years.

And we're going to see Tesla at a market cap of about 8.5 trillion dollars.

So even buying Tesla today at 400 dollars per stock or a market cap of 1.3 trillion dollars and it grows to 8.5 trillion dollars.

Just imagine the astronomical returns that you're going to make on that investment.

Again, I'm not saying that you should buy Tesla because there are a lot of caveats.

On the one side, you want to believe Elon because he has already done it once.

On the other side, to achieve those kind of milestones, then Tesla must become the most profitable company in history.

It must be way more profitable than Apple, than Nvidia.

It literally must be more profitable than Apple, Amazon, Nvidia, Google, and Oracle all combined.

I mean, if you take today's numbers, of course, it's going to change over time.

But there is also a possibility that we are entering this age of high inflation where prices will continue rising, especially when we have the government that is pumping into the economy about extra 2 trillion dollars, which is devaluing the value of the dollar, which is going to make it a lot easier to achieve the market cap.

I mean, one of the reasons why the stock market shot to the roof, for example, in 2020 and 2021, these are primarily the two years where Tesla literally achieved its valuations.

If it wasn't for the cheap money of 2020 and 2021, I don't think there is a single chance that Tesla would have achieved the same valuation because that cheap money literally just pumped into our stock market.

And if you look at the projections of the government spending in the US, you see that those extra 2 trillion dollars are not going to go anywhere anytime soon.

Of course, we are not counting on the Fed to lower interest rates to 0% just like it was back in 2020 and 2021, but because the economy is slowing down, interest rates will be lowered to a certain extent.

Maybe by a single percentage point, maybe by 2, maybe by 3.

But I still can't grasp the idea that Tesla will have a 400 billion dollars EBITDA with a sales of about 2.7 trillion dollars, imagine how many number of cars they have to sell.

But I guess it's just about the cars, it's about the robotics, it's about the subscriptions and self-driving cars that they will be selling.

And I guess Tesla will slowly be moving into this kind of AI company that will be selling a lot of software because that's where you make the real money, that's where the real revenues are going to come.

Because when you're selling a physical product, there is a fixed cost attached to it.

But when you're selling a software, you can sell as many as you want of that software.

I'll be making a full breakdown of Tesla stock for our community of investors to find out whether it's a good investment or not.

So if you wanna find out more about it, you can check the first link in the description of this video.

Thanks for watching and I will see you in the next one.