Tesla Motors, Inc. (NASDAQ: TSLA) – Elon Musk Qualifies for $ 700 Million Stock Options as Tesla Exceeds Market Cap Average of $ 100 Billion

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Tesla Inc. (NASDAQ: TSLA) Shares have risen enough in recent months to allow CEO Elon Musk to benefit from the first lump sum payment as part of his stock compensation program, Bloomberg reported on Tuesday.

Tesla achieves performance targets

The Palo Alto-based company’s six-month average market cap exceeded $ 100 billion at the close of the day, according to data compiled by Bloomberg.

It was one of the provisions of a 2018 agreement reached by Tesla’s board of directors.

Other conditions for the release of the first of Musk’s 12 installments of stock options included the electric vehicle maker reaching an average market capitalization of $ 100 billion over 30 days; and gross revenue of $ 20 billion and adjusted EBITDA of $ 1.5 billion in the previous quarter.

These performance targets have already been met, said Bloomberg. This means that Musk is now eligible to unlock 1.69 million stock options at $ 350.02 per share. These are valued at around $ 706.7 million at Tesla’s closing price on Tuesday.

Musk’s next acquisition period will end when Tesla has an average market capitalization of $ 150 billion over six months and meets other conditions.

Milestone follows Musk’s explosion on Twitter

Musk became eligible for the tranche even though one of Friday’s erratic tweets drove the company’s shares down 11%.

The company surpassed Wall Street estimates for first quarter results late last month.

Musk has criticized widespread bans in the United States to curb the spread of the coronavirus, resulting in the closure of the company’s manufacturing operations.

“FREE AMERICA NOW,” he said. tweeted last week, requesting an end to the lockdown with precautionary measures in place.

The 48-year-old actor also announced the birth of a baby with girlfriend Grimes on Monday.

TSLA award share

Tesla shares closed up 0.92% to $ 768.21 on Tuesday and added 0.82% more after the session at $ 774.50.

Photo courtesy of Tesla.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



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