A new business plan means Tesla will have to go into overdrive.
Company shareholders recently approved a 10-year, $56 billion pay package for CEO Elon Musk.
If all goes as planned during that timeframe, Musk would pass Amazon CEO Jeff Bezos to become the richest person in the world. Bezos is projected to be worth about $132 billion in 2028, while Musk would be worth $176 billion.
There’s one big caveat, however: Musk only gets paid if Tesla meets some very ambitious targets.
Within the next 10 years, Musk has to increase the electric car company’s value 12-fold—from $54 billion to $650 billion. His current stake in the company is about $12 billion.
Musk also needs to hit 12 market capitalization milestones and 16 revenue or earning targets on the way to that $650 billion figure.
If he doesn’t reach those goals, he doesn’t get any of the money.
Tesla and Musk have a hard road ahead of them. The company’s first mass market vehicle, the Model 3, has faced numerous manufacturing delays because many parts of the car are still being made by hand.
One current Tesla engineer also estimated that 40 percent of the parts made or received at Tesla’s factory were flawed and required repairs. That’s especially surprising considering Teslas reportedly go through more than 500 tests and inspections before reaching customers.
These production bottlenecks have set Tesla back considerably. It was supposed to build 1,500 Model 3s in the third quarter of 2017, but only 260 were actually manufactured.
Things improved slightly in the fourth quarter, when Tesla produced 2,425 Model 3s and delivered 1,550. But in that same quarter, the electric car maker posted its largest quarterly loss ever, a $770 million write-down.
The company now hopes to make 2,500 cars per week by the end of March and 5,000 per week by the end of June. Over 200,000 people have already pre-ordered the Model 3, which has a starting price of $35,000.
If Musk wants to make these customers happy—and get that huge payday for himself—he’s gonna have to put the pedal to the metal.