Elon Musk qualifies for an unprecedented $2.1 billion stocks

His second big pay award since May.

Elon Musk, the CEO of Tesla, successfully made it to unprecedented heights by qualifying for $2.1 billion in stocks. As the company decided to lower the price of the Tesla Model 3 electric car, the sales have increased tremendously. Tesla’s shares have surged more than 500% over the past six months leading to massive success. 

The last six-month performance graph of Musk, which showed a dip in stocks by 3% on Tuesday afternoon, does not affect Tesla’s market capitalization as it reaches the highest point of $300 billion. The company’s market cap is now higher than the combined market values of Toyota, Ford, General Motors, and Fiat Chrysler. 

While the stock’s rally game is staying strong, the average market capitalization cap of Tesla has also jumped to $150 billion for the past six months, making it a top priority for investors. 

Musk is now eligible to use the second trench of a 20.3 million stock options compensation plan that was granted to him back in 2018. The stock compensation plan has 12 levels; each contains 1.69 million shares. However, Elon Musk will get the shares at a discount and can use these options only if Tesla hits a specific milestone on average market capitalization. Now that Tesla has proved it is doing way better than other electric carmakers, Musk can now buy the options at a discounted price of $350.02 per share. 

After May, this is the second big hit for Musk following Tesla’s massive stock surge. The stock’s current price is $1568.36, and Musk may sell 1.69 million shares for $2.1 billion. While hitting the peak for the second time, first made in May, Musk can earn a profit of $4.2 billion based on the price of the current share. 

READ: Elon Musk’s SpaceX to raise $250 million in funding for Crew Dragon, Starship and Starlink

When the first tranche, the very first level of the compensation plan, was vested in May, it was worth $700 million. As Tesla’s stock price increased so the tranche value also rose, primarily due to the increase in sales of Tesla’s Model 3. After the unexpected rise in the sale of autonomous cars in the second quarter, the company’s annual revenue report would show it as the fourth consecutive profitable quarter. 

Refinitiv analysts first believed that Tesla might face the loss near to $340 million, but the company’s performance opens the door for Musk for the second tranche. Contrarily, seeing the increasing performance graph, analysts expect comparatively a low loss of $240million for the fourth quarter. 

READ: Elon Musk ships 1,200 ventilators to California hospitals

The company’s market value should reach an average of $200 billion to unlock the third tranche. As more and more people are interested in buying electric cars from Tesla, we anticipate the company’s market cap will continue to increase in the next six months. 

Featured image: AFP

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