Tesla’s (TSLA) stock rally is still going strong and helped CEO Elon musk grow his fortune by $9 billion over the last few months, but if it keeps going, it could see Musk getting a $800 million payday under his latest compensation plan.

Over the last few months, Tesla’s stock has been on a strong rally that resulted in pushing several new all-time highs over the last few weeks.

Last month, the stock even reached over $420 per share, which was the controversial price at which CEO Elon Musk claimed he secured funding to take Tesla private.

Now we are barely a week into the new year, and the stock is already up over 12%.

As of today, Tesla’s stock is now up more than 100% over the past six months:

The electric automaker more than doubled its market capitalization now to more than $85 billion.

Tesla shareholders have been enjoying the ride, and Musk has benefited more than once as the biggest Tesla shareholder, with just over 20% of all outstanding shares.

He saw his fortune from Tesla grow by $9 billion over the period, but it could get even better for the CEO who doesn’t accept a salary from Tesla.

However, the shareholders granted him a very generous and ambitious stock compensation plan in 2018:

The plan is linked to a significant increase in revenue, adjusted EBITDA, and a massive increase in company valuation.

Each $50 billion increase in Tesla’s market capitalization would result in Musk receiving 1.69 million shares, which is currently worth about $800 million at today’s price.

If Tesla reaches all the milestones and a market cap of $650 billion, he would own about 30% of the company at that point, which would be a stake worth about $195 billion — making him the richest man on the planet.

At the time the plan was approved, naysayers claimed that even the first milestone of $100 billion market cap wasn’t achievable, but it now seems well within reach.

Do you think Tesla will get to $100 billion market valuation? If so, when? Let us know in the comment section below.

FTC: We use income earning auto affiliate links. More.


Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.

About the Author