Hello and

welcome to the Tuesday January 23rd, 2018,

on the Tuesday, January 23rd, 2018, edition of Tesla Daily unofficial Tesla podcast.

My name is Rob Maower and today we are talking about Tesla's new CEO compensation plan for

Elon Musk.

Tesla stock on Monday closed up 0.44% to $351.56, this compared to the NASDAQ up 0.98%.

Supercharger network update, we are still at 1,142 supercharging locations.

Huge news today as Tesla's Board of Directors has submitted a proposal for Elon Musk's compensation plan as CEO over the next decade.

As you may know, Elon's current compensation plan has 20 objectives in it, of which 19 will be completed by the end of 2018.

This compensation plan included things such as the successful completion of Model X, of Model 3,

and aggregate vehicle production of 100,200,000 and 300,000 vehicles.

In 2012 when this incentive package was put in place, Tesla's market cap was $3.2 billion and each of these 10 milestones in the original incentive plan

were tied to $4 billion increases in the market capitalization of the company.

So one of the performance metrics had to be hit and one of the market capitalization goals had to be hit for Elon to receive the shares for each step of this incentive plan.

The current market cap of 59 billion exceeds all of the market cap targets because that

would have maxed out around 43 billion.

And then the only performance metrics that have not been hit yet are aggregate vehicle production

of 300,000 vehicles, which will be hit this year for sure. And then four consecutive quarters of gross market. of

a thousand vehicles which will be hit this year for sure, and then four consecutive quarters of gross margin being greater than 30%.

So with this plan nearly completed and with model 3 mass production being imminent,

this was the period of time that Elon had talked about in the past as the point in time where he may consider no longer being CEO of Tesla.

Today's proposal of a new compensation plan for Elon indicates that Elon has made the decision to stay with Tesla over the long term.

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