Why did Tesla's stock price rebound strongly today? Focusing on Musk's "trillion-dollar compensation plan"

Recently, Tesla has been attempting to find a new balance between sales volume and gross profit margin through financial measures such as zero-interest loans.

After experiencing a decline in delivery volume and intensified market competition, Tesla’s stock price fluctuations have been closely watched by global investors. Elon Musk’s latest “Overall Plan” and a potential compensation scheme worth up to trillions of dollars have become new focal points of market attention.

01 Market Performance

Tesla’s stock price showed a strong upward momentum on January 12. According to the latest market data, the stock price surged significantly during the trading day, ultimately closing with an increase of over 1%.

This rise was not an isolated event but part of a four-day consecutive upward trend.

During this rally, Tesla’s stock price climbed from $346.4 to $395.94, a total increase of 14%, reflecting a positive market response to the company’s recent developments.

Along with the stock price increase, trading volume also expanded notably. On January 9, Tesla’s trading volume exceeded 67.33 million shares, an 18.04% increase from the previous trading day, demonstrating the “volume up, price up” technical characteristic.

This increase in trading activity indicates that market participants have formed a relatively positive market sentiment around key price levels.

02 Core Driving Factors

Several key factors are behind Tesla’s recent stock price rise. Foremost among them is Elon Musk’s proposed “Fourth Version Overall Plan” and related compensation scheme.

According to disclosures from Shane Goodwin, a corporate governance advisor hired by Tesla’s special committee, and Tesla Chairman Robyn Denholm, Musk’s potential compensation over the next ten years could reach up to $1 trillion.

This compensation plan sets 12 milestone goals, including achieving a market capitalization of $7.5 trillion, selling 20 million vehicles, and 10 million full autonomous driving subscriptions, among ambitious targets.

Tesla’s board of directors also reinforced market confidence. Robyn Denholm explicitly stated that Musk’s political activities would not affect Tesla’s sales performance.

She emphasized, “In the long run, people will buy products they truly love, and Tesla’s cars are exactly that.” This statement eased investors’ concerns that Musk’s diversified activities might distract him from company management.

03 Competitive Environment and Company Strategy

In the face of increasingly fierce market competition, Tesla is adjusting its market strategy. In Q4 2025, Tesla’s delivery volume declined by approximately 16% year-over-year, and the total global deliveries for the year dropped to 1.636 million units, a decrease of 8.6% year-over-year.

To address this challenge, Tesla launched a five-year zero-interest loan scheme for Model 3 and Model Y in the Chinese market, attempting to attract cash flow-sensitive consumers without directly lowering vehicle prices.

Regarding market competition, Xiaomi founder Lei Jun publicly stated that although Tesla is strong, “it is not invincible.” He specifically pointed out that Xiaomi SU7 is currently the only pure electric sedan among similar products that beats Model 3.

This statement highlights the domestic competitive pressure Tesla faces in China.

In the technological competition arena, although Nvidia recently released the Alpamayo autonomous driving ecosystem, Morgan Stanley analysts believe that Tesla still “leads competitors by years” in autonomous driving.

Tesla has millions of vehicles continuously collecting real driving data, which is a significant advantage that its competitors find difficult to match.

04 Tesla Tokenized Stock on Gate

For cryptocurrency investors, Tesla’s investment opportunities are not limited to traditional stock markets. On the Gate platform, Tesla tokenized stock (TSLAX) offers investors a way to invest in Tesla through blockchain technology.

As of January 12, the price of Tesla xStock (TSLAX) was $441, with a 24-hour trading volume of $1.03 million, and a 24-hour price change of -0.31%.

TSLAX is a tracking certificate issued in the form of Solana SPL and ERC-20 tokens, designed to provide qualified crypto market participants with a compliant way to track Tesla’s stock price.

Historical data shows that TSLAX’s price has performed significantly over the past year, with a growth of +36.03%. Although there has been some recent correction (a -2.78% change over the past 30 days), the long-term trend remains upward.

05 Future Outlook and Risk Warning

Tesla’s future development blueprint demonstrates its ambition to transcend being just an automaker. Elon Musk’s latest “Overall Plan” Version 4 positions the company as a “AI-driven robotics and sustainable energy company” rather than solely a top electric vehicle manufacturer.

In this transformation, the Optimus humanoid robot and fully autonomous driving system are key components.

Musk even boldly predicts that Tesla’s Optimus humanoid robot will surpass the world’s top human surgeons within three years.

Although some experts consider this timeline “overly optimistic,” it reflects Tesla’s grand ambitions in artificial intelligence and robotics technology.

However, investors should also be aware of potential risks. Major challenges include increasing competition in the electric vehicle market, slowing sales growth, and doubts about the company’s ability to achieve its ambitious goals.

Additionally, Tesla’s board of directors is expected to hold an important vote on the company’s future development at the shareholder meeting scheduled for November 6, which could become another key event impacting the stock price.

Future Outlook

While the market focuses on Tesla’s vehicle delivery data, Morgan Stanley analysts point out that Tesla’s real moat lies in its massive collection of real driving data, which keeps it “years ahead of competitors” in autonomous driving.

On the Gate platform, Tesla tokenized stock TSLAX is priced at $441.38, offering crypto investors a new way to participate in Tesla’s growth story.

Musk’s trillion-dollar compensation plan and Tesla’s AI transformation are intertwined, and global investors are voting with their capital, believing that this company can go beyond automotive manufacturing to become a core builder of future technological ecosystems.