Tesla Musk is weeks away from next multi-million dollar payment

(Bloomberg) – The rise in Tesla Inc.’s stock price has already allowed CEO Elon Musk to raise two tranches of his moon compensation award, valued at a collective of $ 3.94 billion.

Now, at most, he’s a couple of months away from getting the third, according to the company’s own estimates, which will line him up for another multi-million dollar payment.

Barring a prolonged drop in the stock price, the company’s average market capitalization for six months will exceed $ 200 billion sometime in the third quarter, the electric car maker said in a presentation on Tuesday. That will unlock 1.69 million stock options for Musk, worth roughly $ 2 billion.

According to the filing, other performance criteria triggering the payment have already been met: $ 3 billion in adjusted earnings before interest, taxes, depreciation and amortization, accrued over four consecutive quarters.

Tesla’s shares have more than tripled this year, making it the world’s most valuable automaker despite producing only a fraction of the vehicles its rivals produce. Last week, the company posted a fourth straight quarterly profit, possibly paving the way for joining the S&P 500 index.

Read more: Tesla growth is Musk’s goal after earnings make way for S&P

Musk’s compensation package, the largest corporate payment agreement ever reached between a CEO and a board of directors, includes 20.3 million options, divided into 12 tranches, which could generate more than $ 50 billion for the founder if meet all goals, according to Tesla estimates.

Musk, 49, is already among the richest people in the world with a fortune of $ 72.3 billion, according to the Bloomberg Billionaires Index.

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