Tesla (TSLA) - Get Report CEO Elon Musk just came into a lot of money. $780 million, to be exact. And if all continues to go well with Tesla’s growing share price, Musk could earn billions more in cumulative payouts housed within his 2018 compensation package.
This first payment of $780 million came in the form of 1.67 million Tesla stock options. It was dispensed to Musk because Tesla’s valuation reached $100 billion and held that figure for six months.
Under the details of the plan, Musk could receive 12 total stock tranches, of which this was just the first. For each remaining payout, Tesla's market cap must continue growing in $50 billion increments. If it reaches $650 billion, Musk will receive the full potential payout.
Currently, Tesla’s market capitalization, or valuation, is about $150 billion.
Tesla’s stock has been on a tear in recent months, up 87% year to date.
Elon Musk's net worth is estimated at around $36.3 billion, according to Forbes, making him the 31st wealthiest person in the world.
The CEO has been in the news recently as he publicly debated Alameda County, California about local ordinances that ruled Tesla's Fremont factory should remain closed. Musk has been an outspoken critic of stay-at-home rules to stem the spread of the coronavirus and, on an earnings call in April, compared shelter-in-place orders to imprisonment.
He reopened the Fremont factory, disobeying government orders.
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