Shares of electric car maker Tesla surged on Monday, with a market capitalisation of nearly $100 billion, and its CEO, Elon Musk, will receive a stock reward worth nearly $1 billion if it can reach $100 billion under previous compensation incentives.
Musk’s compensation package for the next decade, approved by Tesla’s special shareholders on March 21, 2018, will be about 20.3 million share options linked to Tesla’s market value and operating performance, or about 12 percent of the outstanding shares on January 19, 2018, withno other cash wages and incentives.
Tesla’s market capitalisation requirements are divided into 12 tiers, with $100 billion in the first tier, followed by an increase of $50 billion, up to $650 billion, and operating results are divided into revenue and ebitda before interest, tax, depreciation and amortisation, with eight levels each and a minimum revenue of $20 billion. Profits were as low as $1.5 billion. After the market cap reaches every level of the requirement, Musk can get about 1.69 million shares of the stock award for just one of the operating results, but 16 of the requirements of the operating performance can only match the market value once.
Tesla’s revenue reached $21.461 billion last year, surpassing the minimum $20 billion required by incentives, and after record production and deliveries of electric vehicles, more than $20 billion in revenue this year has been virtually unconseed, so Musk has been rewarded with a stock award, the only obstacle to Tesla’s market capitalisation.
Tesla’s market value has reached $94.603 billion, just $5.397 billion from $100 billion, after jumping $46.71 on Monday and its share price breaking through $500 for the first time.
In terms of stock prices, Tesla’s market capitalisation is more than $100 billion, and its share price needs to be more than $554.82, or $27.96 above Monday’s closing price of $524.86.
If Tesla’s market capitalisation exceeds $100 billion and the duration meets the requirements, Musk will receive about 1.69 million shares, worth nearly $938 million, based on a $554.82 stock price of $100 billion.