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Tesla chief executive Elon Musk qualified Tuesday for an unprecedented $2.1 billion payment, his biggest prize since May of the electric car manufacturer after its sharp increase in inventories.
Tesla’s stock fell 3 percent in afternoon operations, eroding a recent recovery that raised the company’s market capitalization to just about $300 billion, more than any other automaker.
Despite Tuesday’s declining inventory, and especially for Musk’s finances, Tesla’s average six-month market capitalization reached $150 billion for the first time. This triggers the acquisition of the 12 functions awarded to the billionaire in their 2018 pay package to purchase Tesla inventories at a discount. Musk, who is also the majority owner and CEO of rocket manufacturer SpaceX, receives no salary.
Even with Tuesday’s decline in Tesla’s inventory, its average six-month market capitalization has increased, thanks to a strong recovery in inventory in recent months.
In early May, Musk’s first tranche acquired after Tesla’s average six-month market price reached $100 billion.
Musk has already met Tesla’s monetary expansion goals which are also to get the last tranche of options.
Each tranche gives Musk the option to buy 1.69 million Tesla with percentages consistent with $350.02 each, less than a quarter of its current value. With Tesla’s existing constant percentage value of $1594, Musk would theoretically sell consistent percentages similar to the tranche acquired in May and the existing tranche for a combined profit of $4.2 billion, or only about $2.1 billion consistent with the tranche.
The first price of the Musk leg was about $700 million in May, when it acquired it, but its price has since increased with Tesla’s percentage price.
The average payout for Tesla workers last year was approximately $58,000, according to a corporate record.
Tesla’s inventory has increased by more than 500% in the following year as the company increased sales of its Model 3 sedan.
After higher-than-expected vehicle deliveries in the quarter, some Tesla investors may simply report profits on their quarter report Wednesday after the bell. This would mark 4 consecutive successful quarters, a first for Tesla and a major impediment to joining the S.P.500 index.
Analysts on average expect a $240 million loss for the quarter, according to Refinitiv. A month ago, analysts predicted a loss of approximately $340 million.