Elon Musk is officially in the money.
Tesla’s CEO on Thursday is eligible to cash on a controversial payday that could make him pocket more than $ 700 million.
Electric car maker words in submission that his board has endorsed the operational milestones needed to open the first award in Musk’s $ 50 billion payment package, which required him to drive Tesla’s market value to an average of more than $ 100 billion over the past six months.
Musk now has the option to buy 1.69 million Tesla shares at a price of $ 350 per pop. At Thursday’s closing price of $ 805.81, the billionaire could reverse his new stake in a profit of around $ 775 million.
Musk’s award comes just weeks after he listed two Bel Air mansions on Zillow’s real estate website, following a series of tweets in which he said Tesla’s share price was “too high” and that he would “not own a house” and removed most of his property. .
To get his full award, $ 50 billion, Musk must lead Tesla to a market capitalization of $ 650 billion in 2028. The Tesla Board signed a compensation package in March 2018, when Tesla’s market capitalization was $ 52.46 billion.
Musk still has eight more years to clear 11 more valuation hurdles, mostly with a $ 50 billion increase, which will make him around $ 5 billion each. If Tesla does not reach another milestone, Musk will not receive more money from Tesla.
The South African-born billionaire does not receive a salary from Tesla, and only makes money through performance-based awards.
The full rewards for Musk, who is also the majority owner and CEO of the SpaceX rocket maker, will surpass anything previously given to US executives.
