Musk’s Tesla Deal Could Land Him $50 Billion
CBJ — Shareholders of electric car and solar panel maker Tesla Inc. have approved an enormous $50 billion pay package for CEO Elon Musk. The deal would be contingent on his achieving a number of extremely lofty milestones over the next decade, but ones that certainly seem to be within his reach, albeit with a Herculean effort and some good luck that would be out of his control.
Tesla says the all-or-nothing package is worth $2.6 billion US at current stock values, but that would rise dramatically if Musk meets 12 incremental goals including raising the company’s market capitalization tenfold to $650 billion US. Also included are targets to increase adjusted pretax income and revenue.
If the goals are reached, Tesla would be fourth-most-valuable U.S. company and Musk would be among the richest people in the world.
For each of 12 milestones Tesla achieves, Musk, who already owns over 20% of the company, will get stock worth 1% of Tesla.
In order to reach such lofty goals Musk will need to expand Tesla’s product lineup to include previously announced semis, a new SUV and a pickup truck. In addition to that, the company’s solar roofs will have to be successfully integrated into its energy storage business. It would also require the supply chain meets and demand and that there were no slowdowns in any approvals’ processes.