Elon Musk nearing a potential $3 billion payday

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

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).

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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.

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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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