While many businesses are suffering losses due to the pandemic, Tesla made the headlines as the company was able to achieve all the financial goals needed to unlock the first out of 12 tranches of Musk’s compensation awards.
With this money, Elon Musk can buy 1.69 million Tesla shares for $350.02 per share. The only thing standing between Musk and this goal is $770 million which the company hopes to fulfill by Thursday.
“As of the date of this proxy statement, one of the 12 tranches under this award has vested and become exercisable, subject to Mr. Musk’s payment of the exercise price of $350.02 per share and the minimum five-year holding period generally applicable to any shares he acquires upon exercise,” the document reads.
The document also states that Musk would not be able to sell his shares for another five years if this continues but with Tesla’s current success, the shares would be worth more than you can imagine.
If you are wondering how Elon Musk managed it, then it was done by deciding that Tesla’s CEO would receive a $0 salary from January 2018. No compensation would be granted to him for two years and whatever he would earn by the company would be invested back.
If Tesla hits the financial goals, then Musk would receive an increase in shares.
So now, the goals have been achieved even though the pandemic set the company a few weeks behind.
According to Forbes, if Elon Musk manages to achieve all 12 milestones, Tesla’s price would increase to $650 billion and of course, Musk would become even richer than he is now.