Elon Musk got the first major reward for the success of Tesla

Tesla confirmed that Elon Musk was awarded a first tranche of the relevant document filed with the Commission on securities and exchange Commission on Thursday. Musk received about 1.7 million of Tesla stock, which are valued at about $775 million, based on current market value at the time of closing. Tesla shares closed Thursday at a price of $805,81.

on Thursday the application was filed, which was also the date of the annual meeting of shareholders of the company on 7 July. The paper reported that on the date of the request, one of the 12 tranches of awards became subject to the execution price of the option in the amount of 350,02 per share and a minimum five-year holding period generally applicable to any shares purchased upon exercise of an option.

the Shareholders of Tesla tied the compensation Mask to the performance of the company in March 2018 Option at $2.6 billion were planned to transfer to the businessman 12 installments over ten years. Thus, to obtain all the tranches, the market value of Tesla is expected to grow to $650 billion, and the electric car will achieve several targets in revenue and profitability.

While Musk does not receive a salary or cash bonus, the only options that are based on the market capitalization of Tesla and achieving the targets.

Musk turned Tesla from a niche automaker with production problems in world leader for the production of electric vehicles with the U.S. and Chinese factories. In the beginning of the year capitalization of Tesla for the first time exceeded the value of two major US automakers — Ford and General Motors combined. The cost of Tesla stock rose on the background of the opening of a new plant in Shanghai and start the production Tesla Model Y, and also due to the good financial results at the end of the last reporting quarter.

In January the market value of Tesla for the first time reached $100 billion mark, while maintaining which in a few months CEO Elon Musk receives the right to a reward. Recently, the company exceeded the threshold needed to Elon Musk got his first award.

Musk Now owns about 18.5% of the company as of may 1, according to FactSet, the share is estimated at $24 billion in Total Musk can earn more than $50 billion for the achievement of the market capitalization of Tesla in the amount of 650 billion dollars.

Tesla Shareholder Richard Tornetta through the court requires the company to reduce the compensation package for Elon musk and revise the composition of the Board of Directors. The plaintiff accused the Board of Directors and the Mask in unjustified enrichment. In the lawsuit of Tornetta States that the compensation package of the Mask more than the same payment to all other heads of public companies.

Tesla was forced to restrict its activities on production of electric cars during coronavirus pandemic, much to the dismay of the Mask. During the conference a stake in the first quarter, Musk called the order to stay home, designed to slow the spread of the virus, “fascist”.

Since March, Tesla transferred many employees to work from home was sent on an unpaid leave of other employees and cut their salaries by stopping the work of contractors.

In early may, Elon Musk is one tweet sent in the fall of the stock Tesla. First, he wrote on Twitter that sells all his possessions, including his own house. Then added that, in his opinion, the shares of Tesla are too expensive. As a result, shares of the automaker fell by nearly 10 percent.