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File photo - Elon Musk is dancing his way to the bank as Tesla continues to scale new heights. (REUTERS)
File photo - Elon Musk is dancing his way to the bank as Tesla continues to scale new heights. (REUTERS)

Tesla’s Elon Musk is weeks away from next multibillion-dollar payout

  • Elon Musk, 49, is already among the world’s richest people with a $72.3 billion fortune, according to the Bloomberg Billionaires Index.

Tesla Inc.’s surging stock price has already let Chief Executive Officer Elon Musk collect two tranches of his moonshot compensation award, valued at a collective $3.94 billion.

Now he’s at most a couple of months away from securing the third, according to the company’s own estimates, lining him up for yet another multibillion-dollar payout.

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Barring a prolonged drop in share price, the company’s average trailing market capitalization over six months is poised to exceed $200 billion sometime in the third quarter, the electric-car maker said Tuesday in a filing. That will unlock 1.69 million stock options for Musk, worth roughly $2 billion.

(Also read: Audi CEO admits Tesla is two years ahead of rest in key areas of making EVs)

Another performance criteria triggering the payout -- $3 billion in adjusted earnings before interest, taxes, depreciation and amortization, accumulated over four consecutive quarters -- has already been met, according to the filing.

Tesla’s shares have more than tripled this year, making it the world’s most valuable automaker despite producing only a fraction of the vehicles that its rivals churn out. Last week, the company posted a fourth-straight quarterly profit, possibly paving the way for it to join the S&P 500 Index.

Musk’s compensation package -- the largest corporate pay deal ever struck between a CEO and a board of directors -- includes 20.3 million options, split into 12 tranches, that could yield the founder more than $50 billion if all goals are met, according to Tesla’s estimates.

Musk, 49, is already among the world’s richest people with a $72.3 billion fortune, according to the Bloomberg Billionaires Index.

This story has been published from a wire agency feed without modifications to the text.

  • First Published Date : 29 Jul 2020, 08:27 AM IST