Tesla stock has continued to climb higher since mid-march, with the stock trading around $783 per share, a more than 100% increase from the March lows. More importantly, however, the stock has reached a milestone that has made Elon Musk a very wealthy man and given some green ETFs a boost as well.
In 2018, Tesla’s board and shareholders authorized a compensation plan for Musk, enabling the entrepreneur to garner options valued at potentially more than $55 billion over the next 10 years. Musk was told he would earn the first tranche of at least $346 million in options if Tesla’s market capitalization hits and stays at $100 billion.
The SEC necessitates that companies annually file the total compensation of their chief executives. In Tesla’s 2019 filing, the company reported that Musk “made” $2.3 billion in 2018 as a result of the compensation plan.
Well, the electric automaker’s market value earlier this week reached the threshold needed for Musk to gather the 1.69 million stock options he can exercise at $350.02 apiece, giving them a value of more than $700 million. Accomplishing all of the incredulous targets that were detailed in the pay package could yield Musk more than $50 billion, according to Tesla’s estimates.
Despite the enormous wealth he has amassed, Musk, who is no stranger to controversy, has continued to express desires to shed his material possessions.
Musk, 48, listed two of his California houses for sale Sunday, hoping for a combined $39.5 million for the Bel Air properties. He vowed to sell the houses and most of his possessions in a burst of May 1 tweets in which he also stated he believed Tesla’s stock price was too high, driving the stock into a free-fall.
Tesla stock price is too high imo
— Elon Musk (@elonmusk) May 1, 2020