Automotive

Tesla Arranges Massive Stock Reward for Musk

Tesla Inc. CEO Elon Musk can earn as much as $55.8 billion in stock within the next decade. This was made possible by the new pay plan set by the company.

Tesla sign on headquarters

Musk will own more than a quarter of the electric car company if he hits all targets from 2018-2028.

With the recently announced compensation plan, Musk is in a position where he can gain all or nothing in every milestone set by the company.

The announcement on Tuesday came as Tesla prepared to report its 2017 financial results, wherein investors expected to see massive cash losses.

There have been speculations for the past several years regarding Musk’s future at Tesla. Many were wondering whether he’ll be stepping down as chief executive in the next year or two.

Musk was able to stoke the speculation to as far back as five years ago. he then said that he wanted to stay until the introduction of the Model 3. But in 2014, he said, “I’ll have to see, you know, how things are going at that point.” He then added, “I will certainly be the C.E.O. for the next four or five years, and it’s T.B.D. after that.”

Tesla’s statement read:

“Elon will receive no guaranteed compensation of any kind—no salary, no cash bonuses, and no equity that vests simply by the passage of time. … He will be compensated only if Tesla and all of its shareholders do extraordinarily well.”

Government Probe Tesla Accident

The U.S. National Transportation Safety Board (NTSB) stated on Tuesday that it will be sending two investigators to examine the crash of a Tesla vehicle and a fire truck in California.

The Tesla vehicle was apparently traveling in semi-autonomous mode. The federal safety agency said that the “field investigation” will be investigating both driver and vehicle factors during Monday’s accident.

This will not be the first time the safety board probed the automaker. Tesla cars were already involved in other accidents that were related to its Autopilot before.

According to the Culver City, California fire department, the engine was struck on Monday by a Tesla. The department’s twitter post stated, that the vehicle was “traveling at 65 mph. The driver reports the vehicle was on Autopilot. Amazingly there were no injuries.”

Autopilot is Tesla’s semi-autonomous driver assist system which handles some tasks. It also gives drivers some time wherein they can take their hands off of the wheel.

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