John Raoux
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The increasing demand for electric cars is reflected in high compensation for Tesla boss Elon Musk. (Archive picture).
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Rain of money for Elon Musk (48)! In a first installment, the Tesla boss and newly-made father received $ 775 million for the success with his electric car company. The compensation plan is linked to the achievement of certain targets, such as the stock market value or Tesla’s sales performance. This was announced by the company on Thursday (local time) to the SEC.
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The first tranche includes 1.7 million Tesla shares, the last closing price of which was just under $ 806 and which Musk could now purchase at the option price of $ 350. The difference would result in a book profit of approximately $ 775 million (CHF 750 million). However, Musk must keep the papers for at least five years.
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Market value is expected to rise to $ 650 billion
The Tesla boss does not receive a regular salary, but benefits greatly if the group meets certain requirements. At Musk’s contract extension for another ten years as CEO, at the beginning of 2018, around twelve targets were agreed in steps of $ 50 billion for the market value. In fact, Tesla managed to achieve a market cap of over $ 100 billion on a permanent basis. Most recently, it was almost 150 billion.
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So far, it’s just the first step in an ambitious plan that is set to push Tesla’s market value up to an enormous $ 650 billion. In this case, the 48-year-old could theoretically even raise up to $ 2.6 billion. However, there is also a high risk that Tesla will miss the performance brands. As the largest single shareholder, who holds a share of around 18.5 percent in Tesla, either way, Musk’s assets depend very much on the fate of the group. (SDA)
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