Larry Ellison

Tesla proposes big payout if Musk meets lofty goals

Elon Musk is known for his bold predictions on electric and self-driving cars. Now his pay could depend on whether those predictions come true.

Under a new all-or-nothing pay package, Musk would remain at Tesla Inc. for the next decade and see his compensation tied to ambitious growth targets.

The proposal, revealed Tuesday in a regulatory filing, requires that Tesla grow in $50 billion leaps, to a staggering $650 billion market capitalization.

The electric car maker, based in Palo Alto, California, is worth less than $60 billion today. Tesla must hit a series of escalating revenue and adjusted profit targets, only after which Musk would vest stock options worth 1...