Elon Musk likely $700M richer as Tesla hits value targets
Tesla's market value hit a six-month average value of over $100 billion, triggering a massive stock option for its CEO.
Looks like Elon is an even richer man.
It looks like Tesla CEO -- and proud dad -- Elon Musk is $700 million richer after the carmaker hit a six-month average value of over $100 billion, according to Refinitiv data Reuters reported Monday.
On Monday, Tesla's stock market value reached a six-month average of $100.2 billion.
The payday comes after Tesla achieved numerous targets put in place as part of a 2018 compensation package for Musk. The CEO doesn't receive any salary for that position, nor bonuses. Instead, he'll receive stock purchase options in various tranches as Tesla grows. For the first, Tesla needed to reach a market value of $100 billion, hold that value for a one-month average and then sustain a $100 billion valuation over a six-month average.
The automaker also needed to achieve various other operational milestones, which it did under Musk at the helm.
This first payday allows Musk to purchase 1.69 million shares of Tesla stock at $350.02 per share. Tesla's closing share price yesterday was $761.19, which equals a $694 million profit for Musk, were he to sell the shares immediately. The milestone comes after a strange moment last Friday when Musk said Tesla stock was "too high" in his opinion, which led the price to drop by 10%.
Overall, Tesla stock has fared well, despite the coronavirus pandemic and stay-at-home orders that shut down the automaker's plant in Fremont, California. The company also reported a first quarter profit despite lagging car sales globally.
Musk currently has a net worth of $39 billion, according to Forbes, making him the 31st richest person in the world.
