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posted by Fnord666 on Friday March 23 2018, @12:49AM   Printer-friendly
from the obscenely-large-package dept.

If Elon Musk can increase Tesla's market value 12-fold in the next 10 years, he may be entitled to a maximum of $56 billion in stock awards (likely lower if more shares are sold to the public). This, along with the ballooning of Musk's existing $12 billion share in his company, and his stake in SpaceX and other companies, could help Musk become a Kardashev I trillionaire alongside Jeff Bezos:

A new payment plan for the CEO was approved by Tesla (TSLA) shareholders Wednesday, a spokesperson confirmed. The incentive-based package essentially states that if Musk hits a series of performance milestones between now and January 2028, and he drives his electric car company's market value 12 times higher — taking it from $54 billion to $650 billion — he'll become astronomically rich.

Now, if Musk does drive a 12-fold increase in Tesla's market value, that doesn't necessarily mean the price of a single share in the company will be 12 times larger. The company can do things like issue new stock that could dilute the value of existing shares. But let's assume Musk's Tesla stock would grow at least 10 times more valuable. That would mean just the shares Musk owns today would be worth $120 billion.

Plus, reaching the agreed upon milestones means Musk would get additional stock awards. According to the new compensation plan, Tesla estimates the value of the stock awards to be $2.6 billion, using accounting methods for estimating the cash value of stock options. But if Tesla's market value balloons just as the payment plan hopes, those stock awards could be worth nearly $56 billion, according to a public filing.

Also at Reuters, Fortune, and CNBC.

Related: Tesla Fires Hundreds of Employees
Tesla Burns More Cash, Fails to Meet Production Targets
Tesla Sued Over Alleged Racism; Deliveries Pushed Back; Semi Truck to be Unveiled
Tesla Semi Truck Will Have a 500+ Mile Range
Tesla Delivers on 100 MW Australian Battery Promise
Elon Musk Vows to Build Tesla Pickup Truck 'Right After' Model Y
Woz Likes his Tesla, Doesn't Trust Elon
Tesla Creating Huge Virtual Power Plant
Elon Musk Expects to Do Coast-to-Coast Autonomous Tesla Drive in 3 to 6 Months


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  • (Score: 3, Insightful) by JoeMerchant on Friday March 23 2018, @04:07AM (1 child)

    by JoeMerchant (3937) on Friday March 23 2018, @04:07AM (#657016)

    What's actually novel is that if he screws up, he gets nothing. That would be frowned upon by most.

    With >$12B in the bank, he can play those games.

    And another $56B isn't money at that point, it's power.

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  • (Score: 2) by HiThere on Friday March 23 2018, @04:42PM

    by HiThere (866) Subscriber Badge on Friday March 23 2018, @04:42PM (#657162) Journal

    Yes. That's worrying. OTOH, it's less worrying than the folks who have that kind of power right now. At least he's been using it in interesting, and possibly important, ways so far. (I'll admit I'd like to leave out that "possibly", but we need to face the fact that real failure is a possibility.)

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