Tesla shareholders have approved Elon Musk's massive new pay package

REUTERS/Stephen Lam

Tesla CEO Elon Musk has a massive new pay package.

• Tesla's shareholders have approved CEO Elon Musk's 10-year compensation package.
• If Musk meets his targets, Tesla's market cap would rise to $650 billion.
• The company is worth around $55 billion now and is struggling to meet production goals for the Model 3 mass-market vehicle.

Tesla shareholders have approved CEO Elon Musk's massive new 10-year compensation package.

A Tesla spokesperson confirmed the result after a shareholder vote on Wednesday.

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If Musk hits a series of performance targets over the next decade, the carmaker's market cap would rise to $650 billion from roughly $55 billion today.

"The grant gives Musk $2.6 billion in stock options in 12 tranches that each vest as the company hits key performance milestones over 10 years," CNBC reported.

Musk satisfied the requirements of his previous pay package, taking Tesla from a tiny startup selling one car to a company whose market value has surpassed Fiat Chrysler Automobiles and Ford and even challenged General Motors.

Tesla shares surged on Wednesday by almost 4% to $322.

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