Elon Musk agrees to receive no pay unless he raises Tesla valuation to $650bn
The chief executive will take home no pay and will follow a ten-year plan in a bid to match the likes of Google and Microsoft
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Elon Musk has agreed a new deal with Tesla which will see him take home no pay unless the company turns its losses around and makes a profit.
Tesla said on Tuesday that it was introducing a set of targets for its chief executive to meet in order for him to receive future pay.
Its most staggering target for Mr Musk is raising the value of Tesla to $650bn (£464bn), matching the likes of tech giants Alphabet's Google and Microsoft – both of which are larger than Tesla.
The US firm is currently valued at around $50bn and made a loss of $619m in the three months ending 30 September.
The company says it will only reward Mr Musk on a mix of market valuation aims and operational milestones met over a 10-year performance-related plan.
Tesla introduced a similar five-year plan in 2012 when it put vehicle production targets and market valuation targets. It has since become the highest valued company producing cars in the US.
Tesla said its growth is directly linked to Mr Musk remaining in sole charge of the company as chief executive or “serve as both executive chairman and chief product officer”, with “all leadership ultimately reporting to him”.
The firm also touted the possibility of bringing in another chief executive who would report to Mr Musk, but said there is “no current intention for this to happen”.
Alongside its electric car production, Tesla is expanding into solar energy production and battery storage.
Tesla switched on the world’s biggest lithium-ion battery in December to shore up Australia’s power grid.
Mr Musk met his target of building the giant battery in 100 days. If he had taken longer he had pledged to give the facility away for free.
Mr Musk also has his eyes set on transporting humans to Mars by 2022 using autonomous spacecraft carried by his SpaceX rockets.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments