Actually, profit is not a requirement
for Musk's furture over-compensation, just as it was not in his prior package.
EBITDA margins (and very low ones at that) along with revenue growth are all that would be required for Musk to increase his ownership of TSLA from todays ~22% to ~34% over the contract period.
https://seekingalpha.com/article/413939 ... fitability
Tesla: Elon Musk's Compensation Implies Massively Lower Profitability
The Implied Margins Are Amazingly Low...
So, as long as TSLA can continue to borrow money, and sell more product at below cost, Musk's (undiluted) share of TSLA will increase by billions of dollars, with each tranche.
Of course, the chances of TSLA meeting all those financial goals are zero, but the announcement appears to be timed to distract from what are likely to be further disastrous financial numbers for Q4, soon to be announced:
https://www.marketwatch.com/story/tesla ... 2018-01-23
Elon Musk’s new compensation plan is a Tesla ‘marketing tool’: Morgan Stanley
Tesla Inc. Chief Executive Elon Musk’s “ambitious” compensation plan is an “aspirational marketing tool” to attract more talent and capital to the Silicon Valley car maker as the competition to build electric and autonomous vehicles intensifies, analysts at Morgan Stanley said in a note Tuesday.
Tesla TSLA, -1.96% and Musk have agreed to a 10-year compensation plan in which his money is tied to the company hitting several benchmarks, including Tesla eventually reaching a market capitalization of $650 billion. The company is currently worth around $60 billion in market value. The pay plan must be approved by shareholders.
The “mega cap” milestones are meant to capture “the spirit of the bull market,” the Morgan Stanley analysts said.
Besides its marketing aspect, the new plan may also be about making sure investors are comfortable with Tesla, which has missed some key self-imposed deadlines with the Model 3...
Tesla last month reported fourth-quarter deliveries that were short of market expectations and rolled back Model 3 production targets for a second time.
The company has not yet set a date to report its fourth-quarter results. Analysts polled by FactSet expect Tesla to report an adjusted loss of $3.04 a share on sales $3.3 billion. That would compare with an adjusted loss of 69 cents a share on sales of $2.3 billion in the year-ago period...