Car Industry

Tesla's Elon Musk approaches $346M payout as market value soars

It would be the first stage of Musk's incredible pay package, but he's not quite there yet.

Musk is mighty close to a nice payout.
Pool/Getty Images

Tesla has a lot going for it right now. It made a splash with the debut of the Cybertruck, it booked a surprise profit in the third quarter of 2019 and it delivered a record number of cars in 2019. All of this has made the electric carmaker's stock price a rosy thing on Wall Street.

And with the record stock price, CEO Elon Musk inches closer to payday, Reuters reported Tuesday. Following a jump of 9% on Monday, Tesla's market value was 6% shy of the $100 billion value needed to deal out Musk's first portion of the pay package. The CEO would earn $346 million as part of an aggressive pay package agreed to in 2018.

If Tesla reaches the $100 billion mark, the figure will need to hold steady for a one-month and six-month average. Only then will it trigger the first of 12 agreed-to payouts that would award Musk $346 million in Tesla stock. Reuters reported Musk has already achieved an operational target required to unlock the vesting period.

The continued plan is still incredibly aspirational. Tesla's market value would need to continue climbing by $50 billion each year for 10 years to earn the full payout package. If Musk were to lead Tesla and achieve more revenue and profit target, all the while commanding a $650 billion market value, the CEO would earn even more.

Back in 2018 when Musk's pay package was approved, Tesla was worth $53 billion. Right now, it hovers around $90 billion. We'll know more about how close Musk will get when the automaker reveals its fourth quarter earnings in the near future.

Now playing: Watch this: Tesla Cybertruck: First ride in the pickup of the future