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Elon Musk will become the world’s richest man in April if Tesla’s value stays at $100billion

Tesla founder and CEO Elon Musk, pictured in Miami earlier this month, has a lucrative pay package with the potential of making him the richest person in the world by mid-April, if the electric vehicle maker continues to grow at its current rate

Tesla founder and CEO Elon Musk has a lucrative pay package with the potential of making him the richest person in the world by mid-April, if the electric vehicle maker continues to grow at its current rate. 

Musk, who doesn’t get a paycheck or cash bonuses, instead gets options that vest based on Tesla’s market capitalization and achieving milestones for growth.

The EV manufacturer has already met several financial targets that Musk needs, and he currently stands to get options to buy 1.7 million shares of Tesla stock once the company has achieved a $100 billion market value over a six month period. 

Since Tesla crossed the $100 billion threshold on Jan. 22 – and has stayed there ever since – Musk’s big pay day would be expected to arrive by the middle of April.

All he needs is for the average price of Tesla stock to stay at Wednesday’s closing price of $767.29 for the next several months, and the stock could achieve an average value of $100 billion over the six month period.

Tesla stock closed at $767.29 Wednesday. If it stays there for the next several months, it could achieve an average value of $100 billion over the six month period

Tesla stock closed at $767.29 Wednesday. If it stays there for the next several months, it could achieve an average value of $100 billion over the six month period

Tesla crossed the $100 billion threshold on Jan. 22, and has stayed there ever since. That means Musk's big pay day could come as soon as mid-April

Tesla crossed the $100 billion threshold on Jan. 22, and has stayed there ever since. That means Musk’s big pay day could come as soon as mid-April

For Musk’s tranches to vest under the terms of a 2018 pay package, the company’s market cap would have to continue to sustainably rise by $50 billion increments over the agreement’s 10-year period. The billionaire would earn the full package if Tesla’s market capitalization reaches $650 billion. 

Tesla on Thursday had a market cap valued at about $132.66 billion, according to YCharts. 

That makes Tesla the second most valuable car company in the world after Toyota.

Musk currently is the 25th richest person in the world, with a total net worth of $41.5billion, behind Amazon founder Jeff Bezos’ ex-wife MacKenzie Bezos, who has a net worth of $42.9billion, according to Bloomberg. 

Jeff Bezos, meanwhile, holds the top spot with $132 billion.

A lot is riding on Musk to prove he can keep Tesla sustainable and growing, while maintaining its market value. 

Shares of Tesla started off Thursday down 1 per cent after the EV maker announced it was selling more than $2 billion worth of additional shares. 

The move comes just two weeks after Musk said the company had enough cash to fund its capital programs and it didn’t need to raise any more money.

In its statement, Tesla says Musk will buy $10 million worth of the stock while billionaire board member and Oracle co-founder Larry Ellison will buy shares worth $1 million.

The Palo Alto, California-based company will use the proceeds to strengthen its balance sheet and for general corporate purposes.

Shares of Tesla stock also have had a wild ride, as the company’s stock climbed as high as 7 per cent in Monday’s trading and helped the EV maker rise briefly above the $800 for the second time, as it did a week before, on news that the EV maker was to resume production at its plant in Shanghai. 

MacKenzie Bezos, the ex-wife of Amazon founder Jeff Bezos, has a net worth of $42.9billion, making her the 24th richest person in the world

MacKenzie Bezos, the ex-wife of Amazon founder Jeff Bezos, has a net worth of $42.9billion, making her the 24th richest person in the world

Jeff Bezos, who is currently the richest person in the world with $132 billion, could be unseated by Tesla's Elon Musk, who is currently the 25th richest person with  $41.5billion, behind the Amazon founder' ex-wife MacKenzie Bezos, who has a net worth of $42.9billion,

Jeff Bezos, who is currently the richest person in the world with $132 billion, could be unseated by Tesla’s Elon Musk, who is currently the 25th richest person with  $41.5billion, behind the Amazon founder’ ex-wife MacKenzie Bezos, who has a net worth of $42.9billion,

It was announced that the factory would reopen this week after its Jan. 30 lunar holiday closure was extended due to coronavirus concerns, which has claimed more than 1300 lives in China.

The plant is key to manufacturing the Tesla Model 3, a mass production vehicle the company needs to help it continue growing market share. 

Currently, it only represents a sliver of the sales of more established automakers whose stock value it now dwarfs, like Volkswagen, General Motors and Ford, reports CNN Business.

The top target in Musk’s pay package will be paid out if Tesla reaches a market value of $650 billion, which would make it more valuable than all US companies except the largest: Apple, Amazon, Google’s parent Alphabet and Microsoft.

Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai last month. The mass production EV is critical to the company's growth

Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai last month. The mass production EV is critical to the company’s growth

Tesla shares have had an impressive run in the last eight months, reports CNN Business, proving the company could become profitable. Since hitting a 52-week low in June, the company’s shares have risen 338 per cent, and they are up another 85 per cent this year.

And if the share price continues to climb through March, it’s even possible Musk could qualify for his first big pay day before the end of the quarter. 

 

 

 

Read more at DailyMail.co.uk


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