By Noel Randewich
(Reuters) – Tesla Chief Executive Elon Musk qualified for an unprecedented $ 2.1 billion payment Tuesday, his second biggest jackpot since May from the electric car maker after its massive stock surge. .
Tesla shares fell 3% in afternoon trading, eroding a recent recovery that has raised the company’s market capitalization to nearly $ 300 billion, larger than any other automaker.
Despite Tuesday’s drop in stocks, and most importantly for Musk’s personal finances, Tesla’s six-month average market capitalization for the first time has reached $ 150 billion. That triggers the acquisition of the second of 12 tranches of options given to the billionaire in his 2018 pay package to buy Tesla stock at a discount. Musk, who is also a majority owner and CEO of rocket maker SpaceX, does not receive a salary.
Even with Tuesday’s drop in Tesla stocks, its six-month average market capitalization increased, thanks to strong stock recovery in recent months.
In early May, Musk’s first tranche was vested after Tesla’s six-month average stock market value reached $ 100 billion.
Musk has already achieved goals related to Tesla’s financial growth that are also necessary to grant the last tranche of options.
Each tranche gives Musk the option to buy 1.69 million Tesla shares at $ 350.02 each, less than a quarter of their current price. At Tesla’s current share price of $ 1,594, Musk could theoretically sell the shares related to the tranche he acquired in May and the current tranche for a combined profit of $ 4.2 billion, or nearly $ 2.1 billion million per section.
Musk’s first tranche was worth around $ 700 million in May, when it was awarded, but since then its value has increased along with Tesla’s stock price.
Median compensation for Tesla employees last year was approximately $ 58,000, according to a company document.
Tesla shares rose more than 500% over the past year as the company increased sales of its Model 3 sedan.
After higher-than-expected second-quarter vehicle deliveries, some investors believe Tesla could post earnings in its second-quarter report on the Wednesday after the bell. That would mark four consecutive profitable quarters, a first for Tesla and a key obstacle to being added to the S&P 500 index. <.SPX>.
Analysts on average expect a loss of $ 240 million for the quarter, according to Refinitiv. A month ago, analysts had expected a loss of nearly $ 340 million.
Chart: Elon Musk Paydays – https://fingfx.thomsonreuters.com/gfx/mkt/gjnpwxeemvw/Pasted%20image%201595350556523.png
(Reporting by Noel Randewich; Dan Grebler Edition)
