New York (AFP)
Tesla's action on Tuesday passed a symbolic threshold allowing its whimsical boss Elon Musk to unlock a new series of "stock options" that could theoretically bring him $ 2.1 billion.
According to a compensation package adopted in 2018 by shareholders of the electric car maker, Mr. Musk, who does not receive a salary, benefits from "stock options", which come into effect when goals are met.
One of them - keeping an average market value of $ 100 billion for six months - was crossed in May, granting Mr Musk the opportunity to acquire 1.69 million shares at the price per unit. 350.02 dollars and generate a substantial capital gain by reselling them at market price. At the time, that represented a payroll of over $ 700 million.
A second tranche of those shares was released on Tuesday, as the company maintained an average Wall Street value of $ 150 billion for half a year, according to data from Bloomberg.
If Elon Musk chose to exercise his right to acquire the second tranche of shares and sell them at Tuesday's closing price, he would pocket a difference of $ 2.1 billion. However, he must wait five years before he can do so.
According to a ranking by Forbes magazine, Mr. Musk is currently the eighth richest person on the planet, with an estimated fortune of $ 72 billion.
His group, Tesla, is due to release its quarterly results on Wednesday evening. Many observers wonder if they will justify the soaring action on Wall Street, which has tripled since April 1.
© 2020 AFP