Galactic payday for Elon Musk

EElon Musk, 48 years old, is actually busy trying to reach for the stars with his space project Space X. But even down on earth, far from the endless expanse of space, there was news about Musk this week. In his function as the founder and head of the California electric car pioneer Tesla, the horror of the German auto industry. Its products do not take off in the direction of space, but roll conventionally on four wheels – at least so far.

Marcus Theurer

Editor in the economy of the Frankfurter Allgemeine Sonntagszeitung.

But Tesla is giving the technology freak Musk a heavenly shower of money: As part of his long-term compensation plan, he receives the first tranche of a thick package of Tesla stock options. Musk can buy the paper at a price well below the current stock exchange listing. In mathematical terms, this gives him a book profit of around $ 775 million – more than Tesla has earned overall in his profit years, not to mention the loss years.

The Tesla boss is entitled to the payday because the company, under his leadership, has achieved predefined growth targets for sales and stock market value. As a reminder, Tesla is currently galactic $ 155 billion on the scales, a valuation that much larger traditional auto companies can only dream of.

The stock options that Musk has now been awarded in a first installment are, if Tesla stays in the fast lane, only a foretaste of much larger sums: If the car maker under Musk’s leadership should also reach further economic milestones, then these wave to to $ 50 billion as a contractually agreed reward.

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