Elon Musk qualifies for another $2.1B payday

Jul. 21, 2020 3:44 PM ETTesla, Inc. (TSLA)TSLABy: Clark Schultz, SA News Editor164 Comments
  • Tesla's (TSLA -4.5%) market cap has averaged $150B for a six-month period to trigger a second payout to Elon Musk of stock options, according to Reuters.
  • The development is hardly a surprise after Tesla skyrocketed past the $300B market cap mark a few weeks ago, making it a question of when not if on the payout unless there was a share price collapse.
  • Musk math: Each tranche gives Musk the option to buy 1.69M Tesla shares at $350.02 each. At Tesla’s current stock price, Musk would theoretically be able to sell the shares related to the tranche that vested in May and the current tranche for a combined profit of $4.2B ($2.1B for each).
  • Morgan Stanley's Adam Jonas tried to rain on the Tesla parade earlier today with a comparison of Tesla at $300B vs. Amazon and Apple at $300B.

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