Elon Musk recently was famous for his dance moves and might have another reason to celebrate as the company which makes electric cars has been seeing a rise in their stocks and if this stock rises some more dollars and is able to stay at that level for some time, he is in line for receiving the stock options which may be worth many million dollars.
As a part of the agreement of performance awards present in the compensation package of Musk as had been disclosed in the proxy filing of Tesla with the authorities, Musk may receive the options of purchasing the common stock in case the market capitalization of Tesla reaches a particular milestone which starts at $!00 billion. In case that milestone has been achieved, the option of buying close to 1.7 million shares at a price of $350.02 per share may vest, under a few conditions.
The market cap target may be looking at this moment to be very easily achievable for the company as it has increased by over $49 billion in the last three months with the stocks doubling up to 106%. This is going to compare with the rise of 10% in the S&P 500 in the same period.
Though it is not as straight forward as the board of directors of Tesla need to first certify that the market cap has breached the $100 billion mark. Secondly, the threshold of the market cap needs to be reached apart from the operational milestones which are based on profitability or revenue.
As per the proxy statement of Tesla, the measurement of market cap will be based on both the trailing average of six months and the 30 day trailing average of the stock price of Tesla.