By
Temitope Olatunji
April 24th, 2024
Elon Musk has unlocked a new earnings milestone for himself. Though TSLA price today is lower than yesterday, the stock continues its current and somewhat unprecedented surge.
As Tesla stock (TSLA) continues to defy gravity, Elon Musk has achieved another earnings milestone. The CEO is now one step closer to reaping the heavy benefits of his earnings deal as agreed by shareholders back in 2018. If things continue this way, Musk could become one of the world’s most powerful CEOs and also one of the world’s richest people.
Elon Musk Closer to New Earnings Milestone
Coinspeaker has recently reported that TSLA hit $550 and crossed the $100 billion mark, pumping its market valuation. This $100 billion mark was the first milestone Musk was to cross according to the payment plan from the company’s shareholders.
The second market cap milestone in the plan requires Tesla to maintain a market cap above $150 billion for all the trading days in six months. With Tesla’s recent and continuous surge, the milestones don’t look so scary anymore as Tesla’s market cap is now very close to $160 billion. Right now, Tesla is valued higher than the three largest auto companies in the U.S. combined. They are General Motors ($49 billion), Ford ($36 billion), and Fiat Chrysler ($18 billion).
Another Milestone for Elon Musk
According to an official filing with the SEC, the third milestone requires Elon Musk hitting a market cap of $200 billion. Musk has to achieve 12 milestones in total with operational milestones for each one. The goal is to hit $650 billion in market cap at the end of ten years. With every milestone successfully unlocked, his 20 million stock options payout inches much closer.
At the time the package was authorized, it was worth about $2.6 billion. Now, Musk could earn over $55 billion if successful.
As juicy as the package is, it’s also very risky. Firstly, Elon Musk does not earn a salary and is not entitled to any cash bonuses or equity even as he achieves the milestones. A press release in 2018 describes the CEO’s compensation as a “100% at-risk performance award.” It further states:
“For each of the 12 tranches that is achieved, Elon will vest in stock options that correspond to 1% of Tesla’s current total outstanding shares (1% of that amount is approximately 1.69 million shares). If none of the 12 tranches is achieved, Elon will not receive any compensation.”
Tesla Looks Very Bullish
Yesterday, Tesla jumped over 21% to hit $945 as it continues its amazing rally. Even though prices have now corrected a bit, TSLA currently looks very bullish and unstoppable. TSLA has pulled in over 56% in the last week and more than 89% in the last month. This year alone, it already boasts of gains over 112% and is still rising higher. Because of this analysts are generally bullish. Currently, the market says that there is a 50% chance Tesla will hit $7,000 by 2024. But there are even more optimistic forecasts. According to them. TSLA may be trading at $15,000 in 2024.
As Tesla continues to trade in green, it seems to be pulling the stock market up with it. Tesla seems to be the real reason there is a current boost in the stock market. Specifically, the Dow jumped by 400 points yesterday while Nasdaq achieved a new record high.