• Business
  • Personal Finance
  • Tech
  • Luxury
  • Entertainment
TrueEdition Elon Musk’s Billion-Dollar Payday Depends on Tesla Hitting This Significant Milestone
0Shares
0 0 0 0 0
TrueEdition
  • Business
  • Personal Finance
  • Tech
  • Luxury
  • Entertainment
Business

Elon Musk’s Billion-Dollar Payday Depends on Tesla Hitting This Significant Milestone

Helen M. Tam Nov 26, 2020
0Shares
0 0 0 0 0

Tesla CEO Elon Musk is not like your typical business executive. While his billionaire peers enjoy millions in annual salaries, the innovator technically takes home $0 a year.

That’s because he signed a special compensation plan with his company’s board of directors that ties his earnings to the achievement of set goals over a period of time.

And it looks the 49-year-old billionaire is right on track with meeting these goals as he expects a billion-dollar payday soon.

Tesla’s Gains

philipus/Deposit Photos — Tesla’s recent growth is attributed to the increased sales of the Tesla Model 3

Musk is bound to receive $1.8 billion worth of stocks as Tesla’s shares surged more than 40%. The massive jump led the automaker’s market capitalization to reach $259 billion.

Looking back at the past six months, Tesla’s market capitalization increased by $138 billion. If it manages to reach $150 billion, the achievement would unlock the second tranche of Musk’s 12-level stock option reward.

Experts predict that this might happen within the next two months as Tesla’s growth seems to show no signs of stopping despite the ongoing pandemic causing a slump in the sales of the auto industry.

Afotoeu/Deposit Photos — Tesla’s gains may continue into the future as more and more people convert to driving electric cars

Previous Payday

Musk accessed the first tranche of the compensation plan in May when Tesla’s six-month average market value reached $100 billion. His first payday meant he had the choice to purchase 1.7 million Tesla shares for a fixed price that can translate to a profit of $775 million if he sells them today.

In total, Musk can end up earning a total of $55.8 billion when he reaches the final tranche. The compensation plan between the billionaire and Tesla has been described as one of the boldest pay plans in corporate history.

China Images/Deposit Photos — Musk is currently worth $54.5 billion

When Musk signed the compensation plan in 2018, Tesla’s market valuation only stood at about $59 billion. Just over two years later, the company’s value has quadrupled and qualified it to be the most valuable automaker in the world right now.

One of the contributing factors that made these successes possible is Musk’s decision to increase Tesla’s production capacity. Aside from its factory in California, the automaker is expanding to build facilities in China and Germany.

There’s also the fact that the Tesla Model 3 proved to be really popular among consumers. In fact, it managed to sell more units in 2019 than it has in the two years before that.

Share This
0Shares
0 0 0 0 0
Previous Article
Mark Zuckerberg’s Immense Wealth Put Into Perspective with Facts That Will Blow Your Mind
Next Article
Yes, You can Still Earn an Income Even When You’re Already Retired-- Here’s How
Comments (0)

Leave a Reply Cancel reply

You must be logged in to post a comment.

Related News

Business
The Highest Paid YouTubers of 2020: Some of Them Have Already Been Cancelled!
rida Apr 13, 2021
Business
Akon’s Latest $6 Billion Project is Something You’d Never Expect from the Rapper
rida Apr 12, 2021
Business
Starting a Business During a Pandemic? Here’s How You Can Increase Your Chances of Success
Simona Kramer Apr 09, 2021
Business
Five Financial Model Building Mistakes Startup Founders Often Make and How You Can Avoid Them
teresa Apr 02, 2021
TrueEdition
  • Privacy Policy
  • About Us
  • Contact Us
  • Home
  • Terms Of Use

Copyright . All RIGHTS RESERVED.

  • Lost Password Back ⟶
  • Login
  • Register
Lost Password?
Registration is disabled.