Tesla Inc. (NASDAQ:TSLA) Chief Executive Officer Elon Musk has received a $2.1-billion award as the electric vehicle maker reached several milestones.
Tesla’s average trailing market value over six months rose above $150 billion U.S., which means that Musk is now able to exercise an additional 1.69 million stock options, though he must wait at least five years before he can sell them.
The options have a strike price of $350.02 U.S. per share, meaning he would reap a $2.1-billion U.S. gain if he exercised and could immediately sell the shares. Musk unlocked the first tranche of the award in May, when Tesla’s average six-month market value topped $100 billion U.S. The company’s shares have more than doubled since then, and the company is now worth more than Toyota Motor Corp., Volkswagen AG and Hyundai Motor Co. combined.
Musk’s compensation package -- the largest corporate pay deal ever struck between a chief executive and a board of directors -- includes 20.3 million options, split into 12 tranches, that could yield the founder more than $50 billion U.S. if all goals are met.
Tesla shares fell 4.5% in New York trading Tuesday to $1,568.36 U.S. but have risen 275% year to date. For Musk to unlock a third tranche of stock options, Tesla must reach a six-month average market capitalization of $200 billion U.S.
Musk, 49, is the world’s ninth-richest person with a $71.5-billion U.S. fortune, according to the Bloomberg Billionaires Index.
