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

PUBLISHED : Wednesday, 24 January, 2018, 3:06am
UPDATED : Wednesday, 24 January, 2018, 2:40pm

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.

Video ‘shows Tesla’s semi cruising on public roads’

To vest shares when milestones are reached, Musk must stay on as CEO or serve as both executive chairman and chief product officer.

Tesla provides for Musk’s long-term leadership, but also gives flexibility to name another CEO in the future.