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Booming Tesla stocks to bring Elon Musk closer to $750 milli...
07-05-2020 21:14
Booming Tesla stocks to bring Elon Musk closer to $750 million payout
Booming Tesla stocks to bring Elon Musk closer to $750 million payout

The stocks of the electric car maker Tesla will soon surge in popularity, market analysts predict. The possible high revenue from Tesla stock options may confirm these forecasts. It is estimated that Tesla’s CEO Elon Musk can now qualify for $750 million in stock options after the company’s shares have recovered from a slump caused by the coronavirus and lockdown measures. Shares of Tesla surged by 10% last Monday on April 20 ahead of the company’s quarterly report. The Monday rally placed Tesla's market capitalization at $145 billion. Notably, it is very important for Elon Musk to get profit from the options as he receives no salary or cash bonuses. His earnings fully depend on options that vest based on the market capitalization of the company. At the moment, Tesla’s stock market value has reached a six-month average of $96 billion. Hitting a six-month market capitalization of $100 billion will mean that the company’s CEO could get the first of 12 tranches of options granted to the billionaire to buy Tesla stocks. Each of the 12 tranches in the compensation package allows Musk to buy 1.69 million Tesla shares at $350.02 each. Those shares can be used to make a big profit. For instance, on April 20, the automaker‘s stocks closed with a spike to $798.75 per share. Musk could sell those shares and get a reward worth $758 million.Today, the full payout for Musk, who is also the majority shareholder and the CEO of the SpaceX rocket maker, may become the largest among the major US entrepreneurs. Analysts expect to see Tesla’s first-quarter revenue jump by 30% to $5.9 billion. However, the company may have incurred some losses due to a drop in demand for electric cars amid the COVID-19 pandemic.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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