Elon Musk, worth an estimated $14 billion – primarily from his heavily subsidized ventures, stands to rake in an additional $1.4 billion in $TSLA options if Tesla Inc. is able to achieve six operational and market value targets by 2022, per a recent filing.
Musk, who was awarded 5.27 million stock options in 2012 tied to Tesla operational and market value targets, has achieved six of the 10 operational goals to date, up from five at this time last year, according to a proxy statement filed Thursday. The automaker has also met eight of the 10 market value milestones, up from seven last year, the filing shows. –Bloomberg
As of this writing, Tesla delivered 25,000 electric vehicles in the first quarter (subject to board confirmation), satisfying the “Aggregate production of 200,000 vehicles” milestone.
In addition to production targets, Tesla’s gross margin must remain above 30% for at least four consecutive quarters (which has ranged from 19 – 28% over the last year), and it’s market value must remain above $43.2 billion for at least six months – or $270 per share.
Musk can cash in on the options if Tesla hits the targets ahead of schedule, worth approximately $1.4 billion as of Thursday’s close.
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