Tesla's Elon Musk qualifies for $11 billion options payout
On Monday Tesla got qualified for two options payouts worth a combined $11 billion, as its quarterly report qualified the target.
As its first-quarter revenue and profit, was increased by record deliveries and demand from China and environmental credit sales.
It reported quarterly revenue of $10.39 billion and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.84 billion, surpassing milestones that trigger the vesting of the fifth and sixth of 12 tranches of options granted to Musk in his 2018 pay package to buy discounted Tesla shares.
As the CEO of rocket maker SpaceX, he receives no salary.
Though the production of Tesla is a fraction of that of Toyota Motor Corp. Volkswagen or General Motors, it has still become one of the most valuable car makers in the market with a market capitalization of $700 billion, in comparison to that of $250 billion of Toyota.
Tesla's shares have receded from record highs in 2021 after jumping more than eight-fold last year.
In its quarterly report after the bell, Tesla said it incurred an expense of $299 million related to Musk's pay package, "driven by an increase in market capitalization and a new operational milestone becoming probable."