Elon Musk Hits Number 5 on Forbes' Richest List, Collects $2.1 Billion from Stock
Tesla CEO Elon Musk has unlocked the second tranche of his bonus structure that will allow him to collect $2.1 billion, money he plans to put toward his plans to colonize Mars, reported Bloomberg.
Essentially. Long-term purpose of my Tesla stock is to help make life multiplanetary to ensure it’s continuance. The massive capital needs are in 10 to 20 years. By then, if we’re fortunate, Tesla’s goal of accelerating sustainable energy & autonomy will be mostly accomplished.— Elon Musk (@elonmusk) July 7, 2020
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This money is part of 1.69 million stock options Musk has received as a part of his compensation package. Musk qualified for this compensation when Tesla’s average trailing market value over six months rose above $150 billion on Tuesday.
The shares come with limitations, however. They can not be sold before five years.
On Monday, Musk reached the fifth spot on Forbes Billionaire List, passing investment tycoon Warren Buffett, due to a 10% gain in stock price.
The first tranche of Musk's bonus awards was secured in May when Tesla’s average six-month market value reached over $100 billion. Since then, Tesla's stock has more than doubled, closing at $1,568.36 on Monday compared to $701.32 on the first trading day in May.
Tesla is now worth more than Toyota, Honda, and Volkswagen combined. Musk has twelve tranches he can unlock which would give him more than $50 billion.
Although there would be a lot of taxes to pay on that money, we can imagine that Musk would do some pretty impressive things with it. He has already stated that he plans to use his stock options to fund his plans to colonize Mars. Could this second tranche mean that we will soon be seeing more concrete plans for his lofty goal?