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Coronavirus shutdown could upset Elon Musk's $ 750 million Tesla payday – Business Insider – Business Insider, Business Insider

Coronavirus shutdown could upset Elon Musk's $ 750 million Tesla payday – Business Insider – Business Insider, Business Insider
                      

While Musk is worth some $ 40 billion (a number that fluctuates based on daily market moves), the chief executive’s income includes relatively little cash. More than half of his wealth is in Tesla stock, of which he’s the largest holder, with another $ billion tied up in SpaceX, according to Bloomberg estimates. In court last December, Musk told a jury he was short on cash , and has previously mortgaged many of his California homes .

If Tesla can continue to keep its market capitalization above $ billion – a value well above its Detroit competitors who produce far more cars in a given year – for six months (on a trailing (-trading-day average), Musk will unlock one of twelve award tranches of 1. 350 million options. Once awarded, Musk has to hold the shares, which are worth $ 350. 04, for five years.

“If the value of Tesla’s closing stock price continues near the levels seen in late April 2020, the first market capitalization milestone of $ 750 billion is expected to be met during the second quarter of 572718, “the company said in a regulatory filing this week.

Alameda County, which includes Fremont, extended its shelter-in-place order through May 31 this week, meaning Tesla could not resume full production until two months into the three month reporting period. That financial impact won’t be reported until July.

“It is startling to us that TSLA shares are again trading at $ 750 and as high as $ in the aftermarket Wednesday), “Ryan Brinkman, an analyst at JPMorgan, said in a note to clients Thursday. That high price suggests “investors are imprudently disregarding substantial risks and negative developments.”

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