- The automaker jumped 8% in Monday trading to reach a six-month market cap average of $100 billion for the first time, Reuters reported.
- The event should trigger the executive payday, giving Musk the ability to buy 1.69 million Tesla shares at $350.02 each. The company closed at $761.19 per share on Monday.
Tesla's 8% gain on Monday likely qualified CEO Elon Musk for a $700 million compensation package, mere days after the chief executive criticized the firm's share price.
The Monday rally placed Tesla's market cap at $141.1 billion and breached a six-month market cap average of $100 billion, Reuters first reported, citing Refinitiv data. Meeting the latter condition triggers the first of a 12-part compensation package for Musk to buy Tesla stock at lower prices.
Two other conditions focused on the stock's one-month market cap average and Tesla's growth target had already been met. The stock options are part of a pay package agreed upon in 2018.AdvertisementEach of the 12 tranches in the compensation package allows Musk to buy 1.69 million Tesla shares at $350.02 each. The automaker closed at $761.19 per share on Monday, making the reward worth roughly $694 million.
The Monday rally follows Musk tweeting, "Musk's next stock options will trigger at every $50 billion added to Tesla's market cap. A full payout of the package's 12 tranches requires the firm's market cap to top $650 billion, and stands to reward Musk with the largest payday granted to a US executive.
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