Is Elon Musk trying to reclaim world’s richest title after buying $1 billion worth of Tesla shares? — Details inside
&imwidth=600&imheight=450&format=webp&quality=medium "Is Elon Musk trying to reclaim world’s richest title after buying $1 billion worth of Tesla shares? — Details inside")
File photo of Tesla CEO Elon Musk. Photograph: (AFP)
Elon Musk purchased the Tesla shares after the company unveiled a proposed pay package for him earlier this month, as it could potentially make him the world’s first trillion-dollar executive.
Tesla CEO Elon Musk purchased over 2.5 million shares worth $1 billion, news agency AP cited data from the report of regulatory filing report. The filing indicates that the billionaire purchased the stock indirectly through a trust on September 12. After Musk bought the shares, its value on the stock market surged by 7.4% and the cost of each share rose back above $425 for the first time since January.
Elon Musk purchased the Tesla shares after the company unveiled a proposed pay package for him earlier this month, as it could potentially make him the world’s first trillion-dollar executive. This could also make Musk, the world's richest person, surpass Larry Ellison, who recently surpassed him to become the richest person globally on Wednesday (September 10) after a jump in Oracle Corporation shares.
Musk's share price is likely to be 12% of Tesla
The reports further suggest that if the package is approved by shareholders at Tesla’s annual meeting on November 6, then the share price of Musk will be equivalent to as much as 12% of the company in 12 separate tranches and tied to strict performance goals, according to the Associated Press. The targets include sharp gains in vehicle production, operating profit, and Tesla’s overall market value. The compensation plan is structured entirely in stock rather than cash.
In order to unlock the first tranche, about 1% of Tesla's shares, Musk would have to raise the company’s valuation to $2 trillion, nearly double its current market capitalisation, while achieving other milestones. Securing the full payout, which could make him the world’s first trillion-dollar executive, would require Tesla’s market value to soar to $8.5 trillion, making it more than twice the worth of Nvidia, currently the world’s most valuable company.
Meanwhile, the Bloomberg report suggests that Ellison’s wealth soared $89 billion after Oracle reported quarterly results surpassing analysts’ expectations, with expectations of more growth, lifting after increasing his total net worth to $383.2 billion.
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