Pay may be based on Musk’s predictions

Tesla chief executive Elon Musk could be staking his pay on whether his predictions around the company’s EV outcomes prove correct.

Under a new all-or-nothing pay package, Musk would remain at Tesla for the next decade and see his compensation tied to ambitious growth targets, news.com.au reports.

The proposal, revealed in a regulatory filing, requires that Tesla grow in $US50 billion leaps, to a $US650b market capitalisation.

The Californian based electric car maker is worth under $US60b now.

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

He would get no other guaranteed compensation.

The pay package, developed in the past six months by Tesla’s board, still needs Tesla shareholders to vote on it in late March.

If the goals are reached, Tesla would become one of the biggest companies in America.

The $650b benchmark would make Tesla the fourth-most valuable US company, behind only Apple Inc., Alphabet Inc., and Amazon.com Inc. It would be larger than Microsoft Corp., and would exceed the current combined valuation of the world’s top eight publicly-traded auto companies.

The pay scheme would also put Musk among the world’s richest people. Musk’s stock options could be worth up to $US55.8b if he meets the company’s goals. He also would own a 28% stake in Tesla, which would be worth $US182b.

Microsoft co-founder Bill Gates is worth $US86b.

Some overseas media are not convinced about Musk’s pay deal.

“Tesla’s new pay plan for Elon Musk isn’t a bold move, it’s a delusional one,” Business Insider says.

Vanity Fair says; “To call Musk’s goals far-fetched is an understatement”.

Tesla plans to expand from electric cars and SUVs to trucks — including a Semi due out in 2019 — and buses. It will continue to work on autonomous vehicle technology and plans to enter the car-sharing business, letting Tesla owners share their cars when they’re not using them and running Tesla-owned fleets in cities.

The company also plans to expand its solar panel and energy storage businesses.