Musk has transformed Tesla from a niche auto maker with production problems into the global leader in electric vehicles, with USA and Chinese factories. Tesla's "adjusted" EBITDA excludes stock-based compensation, which in the first nine months of 2019 reached $617 million.
Last week, Tesla's stock market value hit almost $89 billion, eclipsing the sum of General Motors' and Ford's for the first time, fueled by a surprise third-quarter profit, progress at a new factory in China and better-than-expected auto deliveries in the fourth quarter. And now it looks Musk is said to reap huge rewards for Tesla's surge. As per a report by Forbes, Tesla's market value is set to cross $100 billion, which will result in Musk will make $346 million.
Musk receives no salary or cash bonus, only options that vest based on Tesla's market cap and milestones for growth, Reuters reported.
In 2018, Tesla's board and shareholders authorized an unparalleled compensation plan for Musk, allowing him to earn options worth potentially more than $55 billion over the next decade. Musk now draws no salary, although he owns around 20% of the company.
Meanwhile, Musk already hit an operational target that was also necessary for the options to vest. In the last seven years, Tesla and Musk seem to have come a long way. In 2012, Tesla's market value was around "just" $4 billion but now is on the verge of breaking the $100 billion mark.
Shares of Tesla have doubled in price over the past three months, paving the way for a massive payday for CEO Elon Musk. In the first two weeks of 2020, it has gone up by close to 25%.
The stock move was fueled by a surprise third-quarter profit, progress at the new China factory and better-than-expected fourth quarter deliveries.