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.
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