Musk may get no salary unless Tesla hits milestones

Lloyd Doyle
January 23, 2018

Even more, Elon Musk's truck is supposed to be able to climb up 5% grade (2.86 degrees slope) at a maximum of 60 miles per hour, aided by the 4 independent motors mounted on the rear axle. The CEO of Tesla, Elon Musk, later unveiled the prototype in November 2017. This ensures that Elon will continue to lead Tesla's management over the long-term while also providing the flexibility to bring in another CEO who would report to Elon at some point in the future. And while Lutz is high on Tesla's automobiles, he doesn't think that's going to be enough to save the company.

They built on top of Musk's previous compensation plan that was based on reaching milestones and being awarded tranches of stock options for each.

The company now has a market value of roughly $60 billion.

-Each time the company increases its market capitalization by $50 billion, beginning with the $100 billion mark and ending with the $650 billion level.

To put those demands in perspective, the electric auto maker, based in Palo Alto, California, is worth less than $60 billion today.

A serial entrepreneur, he has founded several companies, including rocket maker SpaceX and The Boring Company.

Musk is already worth more than $20 billion, according to Forbes.

Should Tesla want to prove Lutz wrong and escape joining the list of dozens of failed US automakers, it will have to ramp up production of the Model 3, and soon.

Lutz's reasoning is that Tesla might not be around much longer as the company isn't manufacturing cars at a profit.

Tesla's shares were up 1 percent in premarket trading.

It is also linked to a significant increase in revenue and adjusted EBITDA as seen in the chart above. Under a 2012 agreement, Musk's stock options that vested only if the Tesla's market cap continued to rise in $4 billion increments.

Tesla said Musk's new performance award was created by company's board, in consultation with third party compensation consultant Compensia Inc, and requires the approval of Tesla's shareholders. Elon and Kimbal Musk, Elon's brother, will recuse themselves from the vote.

Other reports by Iphone Fresh

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