- Elon Musk secured a generous – and ambitious – stock-based compensation plan in 2018.
- The Tesla CEO has already achieved the operational targets, and now only the market cap milestone remains.
- Tesla’s prospects are bright heading into 2020, and Musk could earn the first tranche way ahead of schedule.
Elon Musk’s compensation plan ignited immense interest in 2018, owing to the ambitious targets and the generous reward the Tesla CEO could yield. Among the takeaways was that Musk’s stock award would increase his net worth by up to $55 billion upon reaching the ultimate target: a $650 billion market cap.
Elon Musk has until 2028 to meet that goal, but he’s already more than 75% of the way to earning his first $1 billion bonus. If Tesla stock’s recent performance is anything to go by, he could secure that first billion-dollar tranche way ahead of schedule.
Elon Musk checks off all Tesla’s boxes
To unlock the first tranche, Musk must captain Tesla past a $100 billion market capitalization. Following this year’s fantastic TSLA rally, he has less than $25 billion to go.
He’s also required to hit operational targets, including $20 billion in annual revenue and an adjusted annualized EBITDA of $1.5 billion. Musk has already checked off both those boxes.
All that now remains is for the market cap to soar. Tesla stock just hit the notorious $420 mark, but it needs to climb more than 32% to around $555 to reach a $100 billion valuation.
Tesla boss eyes $1 billion stock award
Over the past three months, Tesla stock has nearly doubled, resulting in short-sellers recording massive losses.
At this rate, TSLA could achieve a $100…