Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Britehouse breaks free from NTT Data

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      The satellite broadband operators taking on Starlink

      9 July 2025

      Yaccarino out: Musk’s handpicked CEO quits X suddenly

      9 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025

      Jony Ive’s first AI gadget could be … a pen

      30 June 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025

      TCS+ | First Distribution on data governance in hybrid cloud environments

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Top » Musk nears $1,4bn windfall

    Musk nears $1,4bn windfall

    By Agency Staff21 April 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Elon Musk (caricature by Insider Monkey)

    Only six remaining milestones stand between Tesla’s Elon Musk and an estimated US$1,4bn (R18,4bn) windfall for the car maker’s billionaire CEO.

    Musk, who was awarded 5,27m stock options in 2012 tied to Tesla operational and market value targets, has achieved six of the 10 operational goals to date, up from five at this time last year, according to a proxy statement filed on Thursday. The company has also met eight of the 10 market value milestones, up from seven last year, the filing shows.

    Musk has until 2022 to reach the goals that trigger the payout, but he could cash in the options sooner if the company hits targets ahead of schedule. They are worth an estimated $1,4bn as of Thursday’s market close, Bloomberg calculations show. That would be quite a payday for the enigmatic Tesla chief who has never accepted his nominal salary.

    Musk earns one-tenth of the options every time Tesla hits a pair of goals — one tied to its market value and another to the company’s operations.

    Palo Alto, California-based Tesla delivered 25 000 vehicles in the first quarter, which vaulted its aggregate number of produced vehicles above 200 000, but that milestone won’t be considered achieved until the company’s board has confirmed the number, the filing said. The company has said it’ll begin building the more affordable Model 3 in July and has predicted that its annual output could soar to 500 000 vehicles by 2018.

    In addition to production targets, Tesla has to maintain a gross margin of at least 30% for four straight quarters. In the four most recent quarters, the company has posted results ranging between about 19% and 28%.

    For Musk to receive the $1,4bn, Tesla’s market value also needs to remain above the $43,2bn threshold for six months, equivalent to a stock price of about $270. The estimate is based on the number of shares outstanding as of 31 January. Tesla, which briefly surpassed General Motors earlier this month to became the most valuable US car maker, had a market value of $49,3bn as of Thursday’s close.

    The $1,4bn windfall from his options is based on what Musk would pocket if he’d been able to exercise all 5,27m of them on Thursday, when Tesla shares closed at $302,51 in New York. The securities have a $31,17 strike price. So far, he hasn’t exercised any.

    Tesla did not name any new independent directors in the proxy. The company confirmed earlier this month it was searching for two new board members who don’t have ties to Musk, as pressure to strengthen management oversight rises amid Tesla’s soaring market value.  — (c) 2017 Bloomberg LP



    Elon Musk Tesla
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleAllan Gray sounds warning on Net1
    Next Article The iPhone’s future? Boring reliability

    Related Posts

    Grok 4 arrives with bold claims and fresh controversy

    10 July 2025

    The satellite broadband operators taking on Starlink

    9 July 2025

    Yaccarino out: Musk’s handpicked CEO quits X suddenly

    9 July 2025
    Company News

    AI in project management: a new era of efficiency and transformation

    10 July 2025

    Samsung unfolds the future with thinnest, lightest Galaxy Z Fold yet

    9 July 2025

    Huawei supercharges South African SMEs with over 20 new eKit products

    9 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.