Elon Musk must increase Tesla’s value from US$60b to US$650b – or he won’t get paid

Elon Musk has 10 years to increase the value of electric car company Tesla by more than 100 per cent – or he won’t get paid, according to the all-or-nothing pay package revealed on Tuesday.

The agreement, which emerged in a regulatory filing, requires that Tesla grow in US$50 billion (HK$390 billion) leaps, to a staggering US$650 billion (HK$5 trillion) market capitalisation.

To put those demands in perspective, the electric car maker, based in Palo Alto, California, is worth less than US$60 billion (HK$469 billion) at this time.

Tesla must hit a series of escalating revenue and adjusted profit targets, only after which Musk would vest share options worth 1 per cent of company shares.

If the company is worth US$650 billion then he will net a cool US$55.8 billion (HK$436 billion) - not bad for 10 years’ work.