Elon Musk has qualified for an almost unbelievable $2.1 billion payout from Tesla after the carmaker achieved a six-month average market capitalization of $150 billion.
That triggered the vesting of the second of 12 tranches of options Elon Musk is granted as part of his pay package to buy Tesla stock at a reduced price. The first tranche was vested back in early May when Tesla’s six-month average stock market value reached $100 billion.
Musk’s first tranche was worth around $700 million in May when it vested but its value has since skyrocketed along with Tesla’s stock prices.
Tesla’s Chief Executive has already achieved a number of targets related to the company’s financial growth, which are also required to unlock the second options tranche, Reuters reports.
Tesla’s current market capitalization is almost $300 billion, making them more valuable than any other carmaker in the industry, as the stock price has surged by more than 500 percent over the past year.
Each tranche gives Musk the ability to buy 1.69 million Tesla shares priced at $350.02 each, which is currently less than a quarter of their actual price. The current share price at the time of writing is $1,594, which means that Musk could sell the shares related to the two tranches for a combined profit of $4.2 billion, or $2.1 billion per tranche.
Tesla is scheduled to release a second-quarter report today, following a stronger-than-expected performance in new model deliveries for the same period. Some analysts remain optimistic that Tesla will report a profit -which would be the company’s fourth consecutive profitable quarter-, while others expect them to post a loss.
