Tesla’s first quarter of 2021 would be one for the books, with the company beating Wall Street’s expectations for Q1 revenue and profit, boosted by record deliveries, some robust demand for its locally-produced vehicles in China, and some healthy environmental credit sales. Thanks to these blockbuster numbers, Tesla has now sustained its profitability for seven consecutive quarters.
With these milestones in mind, Tesla CEO Elon Musk has effectively hit the targets that would qualify him for two options payouts from his 10-year, high-risk, high-reward performance award. And this time around, these two payouts could be worth a combined $11 billion.
Elon Musk has a unique pay system as CEO of Tesla. He receives no salary for his work at Tesla, as his pay package is linked directly to the company’s market capitalization and financial growth. Proposed in March 2018, Musk’s performance award for his work at Tesla involves 12 milestones comprised of $50 billion additions to TSLA’s market cap.
For each of the 12 tranches that are achieved, Musk will vest in stock options that correspond to 1% of Tesla’s current total outstanding shares. Each tranche also gives Musk the option to purchase TSLA stock at $70 per share, a discount of over 90% from the company’s current price in the market.