It’s a well-known fact that Elon Musk hasn’t been receiving any salary for being the CEO of Tesla. This is part of a compensation plan the billionaire struck with the company that entails him meeting certain goals before getting to finally enjoy a payday. And it looks like he’s well on his way to achieving just this considering how well 2020 began for Musk and Tesla.
According to reports, the 48-year-old businessman has been getting richer faster than his fellow ultra-wealthy magnates. In fact, he’s been pulling in a whopping $400 million every day since the new year began. That adds up to a total of $13.5 billion. And it’s just February. What more, Tesla’s market cap has reached over $160 billion and seems to show continued growth. In comparison, its market cap stood at just $60 billion during the end of the previous year.
Going as Planned
All of this is certainly good news to Musk. It can be remembered that the billionaire struck a comprehensive compensation plan with Tesla that will see him receive $100 billion worth in stock options over the period of 10 years. The plan reportedly has 12 tranches. One of the first goals set was Tesla hitting a market cap of $100 billion. Musk has already blown through this objective in the first quarter of 2020. When this deal was inked, the automaker was valued at just $50 billion in 2018.
The reward for this achievement is that Musk would receive the first chunk of options. From here, he would get more as he gets Tesla’s value up every $50 billion. He would eventually get the entirety of his compensation when the company’s market cap grows to $650 billion.
On the other hand, Tesla’s stock has also been doing well. It reportedly continues to go over analyst estimates. As of the moment, the stock is trading at around $887.06 at the close of trading day on the fourth of February. In comparison, it was just at $430.26 during the beginning of the year. A bulk of Musk’s wealth is his holdings in both SpaceX and Tesla.