Tesla shares have risen sharply and the market value of the company has reached almost $ 300 billion. According to this indicator, Tesla is now the largest carmaker in the world.
Although shares fell on Tuesday, the company’s six-month average market capitalization reached $ 150 billion. Thus, the condition for the release of the second of a total of 12 rewards in the form of shares, which Musek’s 2018 agreement promises, was fulfilled.
As a director, Musk regularly receives no salary, cash rewards or capital. His only compensation is a reward, which he will receive only if the company manages to meet the set goals.
Under the agreement, Musk will acquire a total of 20.3 million stock options worth an estimated $ 56 billion over 12 years over 12 years, provided it achieves a number of performance and operating goals. For example, Tesla’s market value will rise to $ 650 billion by 2028 at a steady pace, by $ 50 billion every ten months.
This objective seemed impossible at the time of the agreement. At that time, the market capitalization of Tesla, which specializes in the production of electric cars, was about $ 60 billion and the share price was $ 250 apiece.
Shares below cost
After meeting each of the targets, Musk can buy 1.69 million Tesla shares for $ 350.02 apiece, less than a quarter of their current value. Tuesday’s trading on Tesla closed at $ 1,568.36. If Musk sold the current stock reward immediately, he would make $ 2.1 billion. However, they must not sell them for more than five years, the agency warns Bloomberg.
Tesla boss Elon Musk became significantly richer. He also skipped Buffett’s fortune |
To release the next, the third part of the reward, the company’s six-month average market capitalization must be $ 200 billion. Or, the company must have generated at least $ 35 billion in revenue for four consecutive quarters, or $ 3 billion in adjusted earnings before interest, taxes, and depreciation.
If the goals are not met, Musk will get nothing. However, if the entire package is paid out, Musk will be the highest paid director in the United States. The agreement itself was the largest reward agreement ever between the CEO and the board in terms of remuneration.
Forty-nine-year-old Musk is already one of the richest people in the world. According to Bloomberg, the value of his assets now stands at about $ 71.5 billion, which ranks him ninth in the ranking of billionaires.
–
