Has Tesla's new growth driver emerged? Model Y L becomes a best-selling model; will the stock price experience a new upward trend?

Is Tesla on the verge of a new growth phase?

According to the latest reports, $Tesla(TSLA.US)$ the extended-wheelbase six-seat all-electric SUV model launched in China, the Model Y L, was sold out in the Chinese market in October. New orders indicate that the earliest expected delivery time is November 2025.

Industry insiders believe that Tesla's launch of the Model Y L aims to align with Chinese market preferences and boost sales. From the latest order figures, this new vehicle has quickly become one of Tesla’s best-selling models in a key overseas market, reflecting strong demand. This news also drove Tesla's shares up more than 6% overnight.

Is Tesla entering a new turning point?

Recently, Tesla has been on a positive streak with developments such as the popularity of the Model Y L, Elon Musk's trillion-dollar compensation plan, and the Master Plan. These factors have inevitably led the market to speculate whether Tesla is at the cusp of a new opportunity.

Specifically,

1. The popularity of the Model Y L

Firstly, Tesla launched the Model Y L to cater to Chinese market preferences with the goal of boosting sales. Based on the latest order data, this new model has rapidly become one of Tesla's best-selling vehicles in a critical overseas market, demonstrating robust demand.

The strong momentum of the Model Y L holds significant importance for Tesla, particularly amidst the highly competitive Chinese electric vehicle market. With delivery schedules extending into November, this new model is expected to drive Tesla’s quarterly sales performance and help maintain its competitive edge.

2. Musk's Trillion-Dollar Compensation Plan

The Chairman of Tesla's Board stated that the company has formulated a succession plan for Musk. Tesla has proposed an unprecedented compensation agreement to Chief Executive Officer Musk, with a potential value of approximately $1 trillion, marking the largest executive compensation package in U.S. corporate history.

This highly anticipated proposal aims to incentivize Musk to continue leading Tesla in the coming years, setting a series of ambitious performance benchmarks. These include expanding Tesla's robotaxi business and increasing the company's market capitalization from its current level of approximately $1 trillion to at least $8.5 trillion. The plan spans 10 years.

Morgan Stanley noted that as Tesla increasingly delves into the commercialization of physical artificial intelligence, Musk has expressed a desire to hold at least 25% of the company’s shares to secure veto power in any potential change of control, with the new proposal providing an incentive path to achieve this.

The most significant signal of this plan lies in the design of its compensation structure. These targets not only include traditional business metrics such as delivery volumes and autonomous driving software subscriptions but, for the first time, also incorporate the delivery volumes of 'robots' (Bots) and remarkable growth in 'adjusted EBITDA' as core evaluation criteria.

Notably, the plan includes a key clause allowing adjustments to performance targets in the event of a 'significant' acquisition. Analysts interpret this as paving the way for a potential merger between Tesla and xAI, Musk’s artificial intelligence company. In Morgan Stanley's view, this compensation plan represents a 'good deal' for Tesla shareholders, tightly aligning Musk’s personal interests with shareholder value creation by linking operational, profitability, and market capitalization goals.

3. Unveiling of Master Plan Part IV

On September 2, Tesla unveiled 'Master Plan Part IV' on its official X account. On the cover of Master Plan Part IV, an Optimus robot is shown opening the trunk of a car, signaling a major strategic shift in Tesla’s future development: a comprehensive transition from electric vehicles and energy to artificial intelligence and robotics.

According to the introduction of Master Plan Part IV, over the past two decades, Tesla has relentlessly accumulated technological expertise through the development of electric vehicles, energy products, and humanoid robots. As the influence of artificial intelligence technology continues to grow, the 'next chapter' of Tesla’s story will be 'creating products and services that integrate AI into the real world,' which is expected to foster a 'sustainable and abundant future.'

The release of Master Plan Part IV marks a shift in Tesla’s focus from electric vehicles and energy to artificial intelligence and robotics, aiming to achieve greater and more limitless growth through technologies like autonomous driving and humanoid robots.

Regarding the implementation of Master Plan 4.0, Tesla founder and CEO Elon Musk stated on social media that autonomous driving and the Optimus robot will be the company's top priorities, with approximately 80% of Tesla's future value expected to come from the Optimus robot.

Notably, NVIDIA CEO Jensen Huang has also expressed that physical AI will fundamentally transform the $50 trillion manufacturing and logistics industries, and the "ChatGPT moment" for robotics is approaching.

In the long term, the continuous advancement of AI technology is expected to serve as a dual growth engine for Tesla’s autonomous driving and robotics businesses, providing upward momentum for its stock price. However, investors should remain cautious about potential risks such as technological iteration, regulatory policies, and gaps between market expectations.