Elon Musk closes in a $2.4B payday, thanks to growing Tesla value
Musk just cashed in on his first stock payout option in May and he's already nearing the second payday.
Musk is reportedly worth $70.5 billion already.
This May, Tesla CEO Elon Musk became around $700 million richer as the Tesla met all targets for the first part of a wildly ambitious pay package. Now, fewer than two months later, Musk is close to another payout that could be $2.4 billion.
Bloomberg reported Tuesday that the second part of Musk's pay deal is nearly all set. Tesla already met the requirements for the first and upcoming payday last year, and earlier this year the automaker's six-month valuation average cracked $100 million. That issued 1.69 million shares of Tesla stock to Musk at $350.02 per share, which if he sold them the same day at $761.19 gave him a $694 million profit.
Now, with Tesla's six-month stock valuation closing into $150 million, he'll be in for another 1.69 million shares. At the time of this writing, a single Tesla share hovers around $1,500. If the Tesla CEO unlocks the next part of the deal to purchase the shares at the previous set's price ($761.19) and sells them immediately for a price of $1,500 per share, well, you can see where the couple of billion dollars comes from.
In total, Musk has 20.3 million shares available to him as he continues to meet goals that Tesla's board sets. If he were to collect every single share and sell them, the entire pay package would be worth $50 billion.
While Tesla continues to cruise through milestones, the automaker's also recently become the most valuable automaker in the world, surpassing even Toyota. And, even amid the coronavirus pandemic, Tesla said it delivered a pretty healthy share of new vehicles in the second quarter. On July 22, we'll learn if Tesla still managed to pull a profit, however.
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