tesla proposes big payout if musk meets lofty goals - san ...
Now, his income may depend on whether these forecasts come true. In a brand newor-
Musk will stay at Tesla without paying any fees.
His pay will be linked to ambitious growth targets over the next decade.
The proposal, disclosed in a regulatory document on Tuesday, required Tesla to achieve a leap-forward growth of $50 billion, with an astonishing market value of $650 billion.
The electric car maker in Palo Alto, California, today has a market capitalization of less than $60 billion.
Tesla has to meet a series of growing revenue and adjusted profit targets before Musk will grant stock options worth 1% of the company\'s shares.
He will not receive any other guaranteed compensation.
The compensation plan that Tesla\'s board of directors has developed over the past six months still requires approval from Tesla shareholders, who will vote at a special meeting at the end.
Musk and his brother, Kimbal, will withdraw from the vote, which is a member of Tesla\'s board of directors.
If these are achieved, Tesla will become one of the largest companies in the United States.
The $650 billion benchmark will make Tesla fourth. The most valuable AmericaS.
Second only to Apple, Alphabet Inc. , and Amazon. com Inc.
Based on the current valuation
It will be larger than Microsoft.
And will exceed the current comprehensive valuation of the world\'s top eight
Listed car companies.
The compensation plan will also make Musk among the richest people in the world.
Musk\'s stock options could be worth as much as $55.
If he reaches the company\'s target of 8 billion
He will also hold a 28% stake in Tesla, worth $182 billion.
Forbes is currently the richest billionaire, Microsoft United
Bill Gates, founder of $86 billion.
Musk has long made ambitious plans for Tesla.
In his 2015 earnings call with analysts and media, he predicted that Tesla\'s total value could be comparable to Apple\'s by 2025.
Musk\'s growth plan was developed in his 2016 blog post entitled \"master plan, part of Deux.
Tesla plans to expand from electric cars and SUVs to trucks
Including half due in 2019. and buses.
It will continue to work on self-driving technology and plans to enter the automotive sector
Share the business, let Tesla owners share their cars when they don\'t use their cars, and run Tesla-
The company acquired SolarCity Corp. , a solar panel maker . .
In 2016, plans were also made to expand the solar panel and energy storage business.
Tesla is producing solar panels and roof tiles at its factory in Buffalo, New York, which will help the company weaken President Donald Trump\'s recent 30-
Tariff percentage for imported solar panels and battery modules.
Although the plan is ambitious, it is not new to Tesla.
According to the 2012 agreement, Musk\'s stock options will only be granted if Tesla\'s market value continues to grow in increments of $4 billion.
The company must also meet matching operational milestones, including vehicle production targets and development milestones related to Model X and Model 3 projects.
Tesla finally reached 9 of all market value milestones and 10 operating milestones, only 30-
Gross margin percentage.
When the compensation package was created, the company was worth only $3. 2 billion.
Its market value was 17 times that at the end of last year.
That\'s why the new goal might not be that far.
Michael Ramsey, a Gartner analyst who tracks Tesla, said.
\"So far it is dangerous to predict the failure of Tesla or Elon,\" he said . \".
Adam Jonas, Morgan Stanley analyst with Tesla, believes that with the increased competition for electric and self-driving car talent, the plan is to a certain extent a marketing tool.
Jonas added that Muskwho owns 21.
9% stake in Tesla
Therefore, he believes that the incentive plan is more for the confidence of investors than for the personal interests of Musk.
In order to grant the stake at the time of the milestone, Musk must continue to serve as CEO or as executive chairman and chief product officer at the same time.
This will give Tesla the option to hire a different CEO.
Tesla said that while Musk is not currently planning to resign as CEO, the terms allow him to focus on key products and strategies.
Musk\'s time division between Tesla and other joint ventures has been a concern for investors.
Musk is also the founder and CEO of rocket maker SpaceX and United.
Founder and Chairman of OpenAI, a non-profit organization that studies artificial intelligence.
He also recently started a boring company.
Hope to build tunnels under Los Angeles and other major citiesspeed transit.
Musk has never paid a salary at Tesla, which is unusual for a CEO, but it is not unheard. Ford Motor Co.
Starting in 2005, Executive Chairman Bill Ford did not receive a salary or bonus for five years, when the company\'s wealth was shrinking. Oracle Corp.
Larry Ellison\'s salary was $1, but he was rewarded with millions of dollars in stock.
When Steve Jobs was Apple\'s CEO from 1997 to 2011, he went home for $1 a year. Tesla —
15 years old this year-
Never made the full amount. year profit.
Since its listing in 2010, the company has reported only two profitable quarters.
The four cars it makes are facing serious delays and production problems.
Its latest vehicle, under
The cost of the three cars is no exception.
Musk initially said Tesla would produce 20,000 Model 3 a month by the end of 2017, but he recently pushed the target to the end of the second quarter.
This has not reduced investor interest in Tesla shares.
In the afternoon trading, Tesla shares rose less than 1% to $352.
They have risen by about 40% in the past year.