Three billion dollars for Musk? The next Tesla balance will decide

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At the end of October, Tesla is expected to publish its balance sheet and report on business development in the third quarter. The balance sheet could bring a rain of money for Tesla boss Elon Musk.


Peter Bischoff/Getty Images


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Peter Bischoff/Getty Images


?? Tesla shortly before further target achievement

?? Payday for Elon Musk is imminent

?? $ 3 billion for the CEO?

Fans and investors of the electric car manufacturer Tesla are looking forward to the company’s upcoming quarterly report with excitement. And for Tesla boss Elon Musk, the balance sheet presentation is of elementary importance, because a tranche of US $ 3 billion is being paid out.

Fourth tranche in sight

Because Elon Musk doesn’t get a normal salary for his job as Tesla CEO, but has linked his remuneration to various milestones for his company. If the electrical manufacturer achieves his goals, money flows into Musk’s coffers. After this agreement, which Musk made with the automaker in 2018, seemed too ambitious for a long time, Tesla has now had a real track record and has already achieved some of the agreed goals.

Another is now within reach: The company has achieved an average market capitalization of $ 250 billion in the past six months – a new milestone on the way to paying out the fourth of a total of 12 agreed tranches, reports Reuters.

Billions in equity options within reach

With each tranche, Elon Musk acquires the right to purchase 8.44 million Tesla shares for $ 70 each, one-sixth of the current market price. According to Reuters, the Tesla CEO could redeem the options and, combined with the three tranches previously acquired, could make a profit of $ 11.8 billion on the sale of the shares, or around $ 3 billion per tranche.

Good news for Tesla – bad news for shareholders

However, the expected rain of money for Elon Musk could be an inclusion in the Tesla S&P 500 cost, last warned the Wall Street Journal, pointing out that the milestone payment to the Tesla CEO will be at the expense of profit development should. “These new issues threaten to jeopardize Tesla’s streak of GAAP earnings for four consecutive quarters. For those four quarters, Tesla has average net income of approximately $ 70 million per quarter,” it said. Admission to the important stock market index is only possible if the car manufacturer is profitable for four quarters in a row.

Finanzen.net editorial team

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