Tesla Makes Its Goals, Which Could Make Musk $770M

Pablo Tucker
May 31, 2020

Tesla CEO Elon Musk has qualified for a compensation package worth about $770 million after the electric vehicle company hit certain goals reflecting its rapid growth in recent years. In an SEC filing in advance of a shareholder meeting, the company confirmed that the goals were met and Musk can collect. The filing says Musk can buy 1.69 million shares of Tesla stock for $350.02 each, but it wasn't clear whether he had exercised the stock options.

Tesla shares have been buying and selling at $805.81 (roughly Rs. 60,800) on the shut of market on Thursday, which means the low cost would quantity to nearly $775 million (roughly Rs. 5,852 crores). A 2018 regulatory filing outlined the conditions for the payout which included Tesla hitting trailing-fourth-quarter revenue of $20 billion or EBITDA (minus stock-based compensation) of $1.5 billion for Musk to get the stock award.

Musk's compensation package deal introduced two years in the past guarantees to reward him with 20.three million Tesla shares, equal to some $56 billion (roughly Rs. 4.23 lakh crores), over the course of a decade if the corporate reaches sure monetary and market efficiency targets. It's one of the biggest corporate pay packages in USA history. The company was worth about $149 billion as of Thursday. Musk's full award is set to vest over 12 tranches with different milestone requirements reaching up to $650 billion in market capitalization for Tesla. Breitbart News recently reported that Tesla plans to open its plant in Fremont, California, and has told workers their options are to violate the state's stay-at-home orders and come to work, or stay home and forgo payment and benefits.

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