The reward is a tokenized tesla which add more premium than the regular Tesla Cybertruck due to its limited edition feature. The market value of this NFT is around 125K based on market value shared on the tournament page info.
He is indeed hit the jackpot since he can save from shipping and taxes if the reward is the physical Tesla while he can purchased 1 using the prize money and still have some extra money since the value of real cybertruck is lesser based on your research.
Sorry if I am missing anything here.
Either you, as a winner, receive the reward in physical or tokenized Tesla, you will have to pay tax too. It's only if with a tokenize Tesla, you can hide your reward and avoid tax but in Western nations, I guess it is not a smart choice.
It is clearly that in any nation, receiving a physical reward that has lucrative value like this, will cause more issues in tax. Even with lottery ticker and reward, you will have to pay tax too so the Tesla Cybertruck has higher value than lottery reward in many countries.