Elon Musk Gets more Tesla Options if Valuation goes over $43.2 billion

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Elon Musk and Tesla spell long term goals in the Tesla’s proxy statement. These goals need to be completed by Aug. 18, 2022, in order for Musk to receive various option grant.

The company goals set around Musk’s compensation package are:

* Successful completion of the Model X Engineering Prototype
* Successful completion of the Model X Vehicle Prototype
* Completion of the first Model X Production Vehicle
* Successful completion of the Gen III Engineering Prototype
* Successful completion of the Gen III Vehicle Prototype
* Completion of the first Gen III Production Vehicle
* Gross margin of 30% or more for four consecutive quarters
* Aggregate vehicle production of 100,000 vehicles
* Aggregate vehicle production of 200,000 vehicles
* Aggregate vehicle production of 300,000 vehicles
* Market capitalization of $43.2 billion

The Nummi plant that Tesla took over has the capacity to produce 500,000 cars per year.
Gen III success with a $30,000 to $45,000 car could fill up the remaining production capacity. Gen III will likely be introduced in 2015 or 2016. I think the market cap target could be reached by 2017 if Tesla was selling all 500,000 cars each year. Tesla would also then get another plant or two.

If Tesla accomplishes that goal in nine years it would be 69% the size of today’s BMW brand adjusted for inflation.

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