As Tesla CEO Musk has come into a huge payday worth nearly $800 million and it's not salary based because he doesn’t take one, instead he’s rolling the dice on a performance-based compensation plan.
The electric car maker is firing on many cylinders helping the stock advance over 332 percent during the past 52 weeks, this in part helped Musk meet a series of financial goals, the company disclosed in an SEC Filing Thursday evening.
“As of the date of this proxy statement, one of the 12 tranches under this award has vested and become exercisable, subject to Mr. Musk’s payment of the exercise price of $350.02 per share and the minimum five-year holding period generally applicable to any shares he acquires upon exercise” the filing explained.
The stock closed at $805.81 per share on Thursday. To simplify, Musk has the option to buy over 1.6 million shares at the lower $350.02 price which would net him over $769 million, according to Dow Jones Market Data Group.
Tesla watchers, some of whom are short-sellers or those betting the stock will fall, have been monitoring the stock's ascent this year. Historically, before turning profitable in late 2019, short-sellers aggressively targeted the stock.
It is unclear if Musk will exercise these options, inquiries to Tesla by FOX Business were not returned at the time of publication.
Tesla shares have gained over 92 percent this year and with more “tranches” Musk has the opportunity to reap billions if Tesla continues to grow. He is also the largest individual stockholder with an 18.5 percent stake.
Oracle CEO Larry Ellison is the second-largest individual holder with a 1.6 percent stake, as tracked by Thomson Financial.
Musk is also the CEO of SpaceX and on Saturday he may make history with NASA as the two team up to launch U.S. astronauts into space from American soil for the first time since 2011.
The Wednesday launch was delayed due to the weather.
Despite Musk’s wealth, valued at $36.8 billion per Forbes and his iconic status as an innovator, he was captured at a Florida charging station waiting his turn for some juice as photographed by a Tesla Florida Facebook Group and shared on Twitter.