Musk/Tesla’s Bold New Financial Plan

Elon Musk of Tesla Inc. received a new compensation plan from his company with payments depending largely on the company’s stock prices.  Tesla is also about to report on massive cash losses, however. The plan is much the same as it has been: when Tesla’s stock goes up, Musk owns more of it

The big surprise is the company’s projections–its market value, they think, will increase by 12 increments. They say starting at $100 billion and going as high as an astonishing $650 billion. The surprise, the company’s current market value rests at only $59 billion.

However, Musk, maybe more so than the company, is taking all the risk. If the company hits none of its goals, Elon Musk doesn’t get a thing. Musk’s mental investment is hard to gauge. Already being a billionaire, Telsa’s success isn’t wrapped up in, necessarily, in the Chief Executive Musk’s financial well-being.