musk’s Pay Package Tied to Achievable goals, Experts Say
Tesla CEO Elon Musk stands to gain billions even with modest performance, according to analysis of his compensation package. Experts in the automotive and autonomous driving industries suggest the targets set by the Tesla board are surprisingly attainable, perhaps allowing Musk to cash in considerably even if the company doesn’t achieve aspiring breakthroughs.
If Tesla’s market value increases from $1.4 trillion today to $2 trillion by 2035, and Musk sells an average of 1.2 million vehicles annually over the next decade – half a million fewer than Tesla sold in 2024 - he could earn $8.2 billion in shares.
However,scrutiny of the performance goals reveals potential loopholes. One requirement calls for 10 million subscriptions to Tesla’s self-driving software, but doesn’t mandate full autonomy, only an “advanced driving system,” a term University of Miami Professor William Widen, specializing in autonomous driving, calls a “invented term” lacking industry standardization.
Another goal, requiring one million robotaxis in commercial operation, may be met through remote operation or passenger-seat control, mirroring Tesla’s current limited robotaxi testing in Austin, Texas, as reported by Fortune.
The most challenging goals remain those related to profitability, with the board setting eight targets ranging from $50 to $400 billion, compared to Tesla’s $16.6 billion profit in 2024.
Also read: Musk takes over space – can anyone stop him? Real time
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