Tesla finally crossed the $100 billion market valuation mark on Tuesday setting Elon Musk on course for a $346 million payout according to reports.
According to the New York Times , Tesla’s stock had closed at $569.56 per share on Tuesday leaving its market valuation just a little shy of $103 billion.
Tesla had already become the highest valued auto-maker in the US in early January beating General Motors and Fiat Chrysler when it had crossed $81.39 billion in market valuation.
Elon Musk’s big bonus
According to the payment plan for Tesla CEO Elon Musk as agreed upon by investors back in 2018, crossing the $100 billion mark sets Musk on course for a major bonus of $346 million.
According to a New York Times report, the compensation plan laid out by Tesla includes 12 components. Under the plan, Musk does not receive a salary or a cash bonus. He would be allowed to buy over 20 million shares from the Tesla stock at a deep discount once the company meets certain milestones for market capitalization, revenue and profit.
The company has already hit an operational target which is one of the components of the payment plan, Reuters reported.
If Tesla’s market cap remains above the $100 billion mark on an average over six months including at least 30 consecutive days, Musk can then implement this payment plan and buy about 1.69 million shares at about $350 each. The payout would be more than $346 million considering the current stock price according to a Forbes report.
Musk currently owns 34 million Tesla shares, a fifth of the company, Reuters reported.
Tesla had previously been in the limelight when Musk had infamously sent out a tweet claiming to have secured funding to take the company private which had led to the US Securities and Exchange Commission (SEC) stepping in and Musk having to step down as Chairman in a settlement.
Tesla’s stock started surging again in October after the company’s third-quarter results.
Tesla’s fourth-quarter results will be announced on January 29.