Elon Musk nearing a potential $3 billion payday

Musk looks on at SpaceX Falcon 9 post-launch news conference in Cape Canaveral
Image via Mike Blake /Reuters

Earlier this year Tesla CEO Elon Musk earned the first tranche of his compensation package after Tesla’s six-month average market capitalization above $100 million USD, netting him nearly $800 billion in Tesla shares (TSLA).

Since Musk obviously didn’t sell those new shares, and with the stock price increasing since, that payday is now worth more than $1 billion.

As the stock price continues to increase, Musk is now closer to earning his second massive payday potentially worth more than $2 billion.

After posting stronger than expected delivery numbers in Q2 2020, Tesla’s market capitalization has now increased to over $250 billion. That has pushed the 6-month average to $138 billion (via CBC).

Once that 6-month average reaches $150 billion, Musk will earn the second tranche of his compensation package, allowing him to buy 1.69 million Tesla shares at $350.02 USD each.

Based on the current stock price of around $1,400 US, Musk would potentially be able to sell the new shares for more than $2 billion. Combined with his first tranche in May of around $800 billion, that’s a cool $3 billion.

Of course these figures are all theoretical, as Musk has stated previously he has no plans to sell his shares any time soon, which now give him a stake in the company of about 21%.

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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