Just over two years ago, the Tesla Supervisory Board approved a bonus package for Elon Musk that was quite something. And the Tesla CEO performance bonus provided for the achievement of several key figures (sales figures, profitability, etc.), as well as an increase in the company’s share price and market value. In 12 tranches, Elon Musk will receive 1.69 million shares each at the March 2018 share price of 350 dollars.
At that time I wrote the following:
But now comes the hammer: Elon Musk will receive all shares, but only if Tesla is worth at least 650 billion dollars (526.5 billion Euros) in 2028. Ten times the current price, and four times the value of Toyota, today’s most valuable car company.
The tranches are paid out when, among other things, the value of the company has increased by a further 50 billion dollars.
Fast forward to 2020: Tesla is now traded on the stock exchange at 300 billion dollars, and in May the supervisory board approved the first tranche. At today’s share price of over 1,500 dollars, the 1.69 million shares are thus worth over 2.0 billion dollars [(1,550 – 350)*1,600,000].
And only 2 months later, the next average share price is also above the set targets. So another 1.69 million shares at today’s value of $2 billion. And all this in addition to his 20 percent shareholding in Tesla, which he holds anyway.
This means that Elon Musk – who, by the way, does not receive a salary from Tesla – has received 4 billion dollars in shares. He has not yet converted these into cash and wants to use them in a few years for financing SpaceX and the Mars settlement. The man does not get bored and definitely does not lack targets. And certainly not the necessary capital.
This article was also published in German.