Early today Tesla announced a new stock incentive plan for Elon Musk. Let’s take a deeper dive into the specifics and examine the pros and cons.

First we need to understand what the new stock incentive plan is about. According to Tesla “the performance award consists of a 10-year grant of stock options that vests in 12 tranches. Each of the 12 tranches vests only if a pair of milestones are both met.” Basically, this stock plan expires in 2028 and has 12 stages or “tranches”.

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