Elon Musk believes in Tesla so much that his salary depends on 100 per cent. of how the company is doing. It can turn out to be quite lucrative.
Elon Musk's paycheck is deeply dependent on how Tesla is doing. And it's probably not that stupid at all for the company director and founder, writes Bloomberg.
Since the third quarter of 2019, the stock has risen and has now risen to a record high of over $ 470. That gives Tesla a market capitalization of $ 84.5 billion. more than $ 568 billion It's almost as much as Ford and General Motors combined.
Bloomberg estimates that more good news could push Tesla's market value to $ 100 billion. dollars, which will unlock any big profit for Musk. In that case, the director will be rewarded with DKK 346 million. dollars.
However, that requires the rate to rise to $ 554.8.
The long-term goal on which his salary is tied up is that Tesla to grow by 600 billion dollars corresponding to 3600 billion within 10 years, distributed over 12 sub-goals.
Musk gets no pay or bonuses unless the various goals succeed.
Musk's salary package is reportedly one of the largest ever, with the boss being rewarded depending on the outcome. His pay package received massive criticism from shareholder advisory companies, but it was approved by a large majority of the company's investors in March 2018.
And lately there's been plenty to celebrate for Musk and Tesla.
On Tuesday, a happy Elon Musk danced on stage in front of a Tesla plant outside Shanghai as he celebrated the delivery of the first Model 3 cars to public customers in China.
The company came out in 2019 well above expectations. Although analysts had begun to doubt whether the company could reach its estimate of at least 360,000 cars sold in 2019, Tesla could announce on Friday that sales landed at approx. 367,500 cars. This is an increase of 50 per cent. from 2018.
Otherwise, Tesla had a rough start to the year. The company started out with a loss of DKK 702 million. dollars in the first quarter. The explanation was that demand was falling and therefore the share price fell during the first half year to below $ 180. It was the lowest in three years.
According to Bloomberg, it was so bad that Musk had to ask his staff for help in trimming all critical costs and delivering as many cars as possible to decorate the accounts.