Tesla aims to become an $8.5 trillion company to justify Elon Musk’s new pay package. Musk has a decade to reach this valuation, surpassing Nvidia and Microsoft combined. The pay package, subject to shareholder approval, is based on 12 milestones linked to products, profit, and market capitalization.

Investors value Tesla as a growth stock, despite declining vehicle sales. Musk bets on self-driving software and robotaxis, aiming for a fleet of a million robotaxis. ARK Invest predicts Tesla’s market cap could hit $7-10.9 trillion with a robotaxi network generating $603-951 billion annually.

Musk sees robots as Tesla’s future, with the Optimus humanoid robot potentially contributing 80% of the company’s value. To meet the $400 billion profit target, Tesla would need to sell over 100 million robots annually. EBITDA this year is expected to be $13 billion, highlighting a long journey ahead for Tesla.

Read more at Yahoo Finance: How does Tesla get to $8.5 trillion value? Robots, robotaxis and hope