Elon Musk the CEO of Tesla, had unlocked the very first part of his $55 billion compensation package, announced the Tesla board on Thursday.
Musk is a billionaire, but only in papers. He didn’t receive any salary from the company and relied on mortgages and loans for his daily requirements. Whatever wealth he possesses are engaged as Tesla stock. And therefore, to get paid, in 2018, he had opted for the “12 tranches” of stock options. These “tranches” are basically like a financial treasure chest that will be unlocked in parts when Tesla will hit high on its stock price and will prove itself capable to hold that valuation for 6 months and is also tied to an increasing level of revenues, earnings before interest, taxes, and depreciation (EBITDA), and will become one of the renowned corporations in the whole US stock market.
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As per the company’s most recent quarterly filing, that was on Wednesday, it was found that Tesla had finally achieved its first goals that include revenue and EBITDA that direct towards Musk unlocking the first portion of his package. According to the report, Tesla’s average value on the stock exchange summed up to more than $100 billion for six months and revenue of $20 billion and this permits Musk to buy more than 1.6 million shares at $350.02 per share. However, it is dubious that whether Musk has opted to buy the shares yet, but if he buys, it will become mandatory for him to keep those shares for at least 5years.
This achievement is just a step and the company aims to walk miles. The upcoming 11 tranches targets at gaining not only higher revenue at a faster pace but also aims at earnings limits and marketing capitalizations. Musk’s ultimate goal is to set Tesla’s market value to 650 billion by the end of this decade.