Elon Musk earns another big payday ahead of today’s earnings call

Musk looks on at SpaceX Falcon 9 post-launch news conference in Cape Canaveral
SpaceX founder Elon Musk looks on at a post-launch news conference after the SpaceX Falcon 9 rocket, carrying the Crew Dragon spacecraft, lifted off on an uncrewed test flight to the International Space Station from the Kennedy Space Center in Cape Canaveral, Florida, U.S., March 2, 2019. REUTERS/Mike Blake - RC12CE22F3F0

Tesla CEO Elon Musk doesn’t get a regular salary from the automaker. Instead, he gets paid based on how the company performs, and as a result how Tesla shares (TSLA) perform on the stock market.

Save with big discounts at your favourite Tesla accessories stores, like 10% off at Tesmanian, TesBros and Nikola Pro, plus many more. Coupon codes at DriveTeslaCanada.ca/deals.

In May, Musk earned his first big payday with a tranche of stock options, which at the time were worth around $775 billion. Share prices have more than doubled since then, with the market capitalization of Tesla topping $300 billion recently.

Tesla shares since May

The huge market cap increase means the 6-month trailing average is now more than $150 million, triggering the second tranche for Musk (via Bloomberg).

With today’s share prices just below $1,600 per share, his theoretical payday totals more than $2.1 billion.

Get 10% off at Tesloid.ca or Tesloid.com with coupon code DTC10 at checkout. Quality Tesla accessories with FREE shipping across Canada and the US.

The payday is theoretical because Musk isn’t allowed to sell the shares for five years. He has also stated he will not sell his shares, and will instead use the money to help fund his plan to colonize Mars.

The compensation package doesn’t stop there, with a total of 12 possible tranches that Musk could earn. To earn the third, Tesla must have a 6-month average market cap of $200 billion. In addition, Tesla must either post revenue of $35 billion or $3 billion in adjusted earnings before interest, taxes, depreciation and amortization, over four consecutive quarters.

His recent payday and the rapid rise of Tesla share prices has helped Musk climb the list of richest people in the world, now worth more than $70 billion.

About Darryn 1482 Articles
Founder and Editor-in-chief of Drive Tesla Canada | Darryn@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca