Elon Musk free to pocket 775 M$ at Tesla

Elon Musk libre d'empocher 775 M$ chez Tesla

Elon Musk, the mercurial boss of Tesla, is now free to claim a first paycheck immediate of nearly $ 775 million, the result of a compensation program-to-measure indexed to the financial performance of the manufacturer of electric vehicles.

In a document sent Thursday to the authority of the u.s. financial markets, the SEC, the group in california indicates that Mr. Musk, his iconic boss and co-founder, can now get their hands on the first tranche of a package of options as part of a compensation program announced in 2018.

The shareholders of Tesla at this time had to be granted to the officer, over a period of ten years, 20.3 million shares in Tesla, equivalent to $ 56 billion.

However, he may not receive that for every 1%, is usd 1.69 million shares, each time that Tesla crossed a threshold in the Stock market and reached a certain level of turnover and profit.

Twelve capitalization thresholds to be crossed have been determined, of which the highest rate is $ 650 billion to achieve by 2028

“At the date of this document, one of the important steps relating to revenue (annual) of $ 20 billion and a market capitalization of $ 100 billion (on a given period of time) was achieved and authenticated by the board of directors”, written on Thursday, Tesla.

Elon Musk may therefore ask to receive approximately usd 1.69 million shares of Tesla that he will buy at the price of 350,02 dollars the unit.

If he sells, he will be paid a capital gain of 774,84 millions of dollars to the closing price of the share Tesla Thursday – 805,81 dollars to Wall Street.

The special compensation of Mr. Musk, who has turned Tesla into the world leader in electric car, is being challenged in court by a shareholder accusing the board of failing to discharge its obligations.

Outside of these stock options based on the financial performance of Tesla, Mr. Musk does not receive salary, but he already owns 18.5 per cent of the capital for Tesla, a stake valued at more than $ 24 billion, according to the law firm FactSet.

This is illustrated in recent weeks by an arm of iron with the authorities in california to obtain a resumption of production in the Tesla factory in Fremont, near San Francisco.

The site was closed, as the other car factories of the country, to limit the spread of the COVID-19.

On Wednesday, SpaceX, the space company founded by Mr. Musk, had to be postponed to Saturday, because of bad weather, its first manned flight in the international space Station.

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