South African businessman Elon Musk is well recognized for the foundation of Tesla Motors and SpaceX, a major commercial spaceship launched in 2012. Musk is the CEO of Tesla, an electric car manufacturer. The Palo Alto Company in California produces sedans, sports utility vehicles and is the biggest car employer in the state. He is also the head of SpaceX, a NASA-tapped rocket manufacturer to supply the space station.
What is Elon Musk’s background?
Elon Musk is an American entrepreneur and businessman born in South Africa who established X.com in 1999 (later PayPal), SpaceX in 2002, and Tesla Motors in 2003. In the late 20s Musk was a multimillionaire when he sold his start-up Zip2 to Compaq Computers. Musk headlined the first rocket to be sent to the International Space Station in May 2012 when SpaceX launched it. He supported his portfolio with the acquisition of SolarCity in 2016 and strengthened his position as an industry leader by assuming an advising role in the early days of the administration of President Donald Trump.
Tesla’s Compensation Strategy
Tesla’s board of directors revealed a proposed $100 billion pay package for Musk in January 2018. Musk could earn up to 100 billion dollars over a decade if the plan is approved, which would be distributed in 12 tranches of inventory options. Suppose Tesla achieves a market capitalization of one hundred billion dollars, the first set of choices is given. From then on, Elon gets another tranche of money for every $50 billion increase in the company’s market capitalization. In the short term, if Elon succeeds in increasing Tesla’s market value from $650 billion to $700 billion, he will earn a total of $100 billion. In other words, since Elon is reducing his base salary, he will get no compensation until he achieves a market value of $100 billion, which is the first step toward becoming a billionaire. You may also read joe-Biden-net-worth
Elon Musk’s net worth
Elon Musk has become the wealthiest person in the world, with a net worth of $185 billion (£136 billion). Musk controls approximately 20% of Tesla, according to the regulatory filing of August 2021. Part of his assets is utilized for personal commitments as collateral. A December 2020 filing reveals that it has loans from three U.S. banks of about $500 million. According to Bloomberg’s analysis, it also has about 73.5 million exercisable options to buy Tesla shares which are part of its net value. This covers 50,7 million options opened from May to October 2020.
SpaceX is valued at $74 billion in a February 2021 funding round, according to the company. According to a filing with the Federal Communications Commission on November 15, 2016, Musk controlled 54 percent of the tightly held trust that owned the company. Bloomberg’s research implies that he did not sell any more shares in the subsequent rounds and that his ownership was diluted to roughly 47 percent of the total raised, based on the amount raised. In the opinion of the two brokers, this lowers the value of the stock by 15% to account for the usual discounts that unicorn shares get on the secondary market.