"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2020-08-18T12:43:04Z"
data-video-section="business"
data-canonical-url="https://www.cnn.com/videos/business/2020/07/30/elon-musk-tesla-ipo-2010-vault-orig.cnn-business"
data-branding-key="vault-by-cnn"
data-video-slug="elon musk tesla IPO 2010 vault orig"
data-first-publish-slug="elon musk tesla IPO 2010 vault orig"
data-video-tags="automakers and manufacturing,automotive industry,banking, finance and investments,business and industry sectors,business figures,business, economy and trade,companies,elon musk,financial markets and investing,financing and stock offering,initial public offering,tesla inc"
data-details="">
Video Ad Feedback
In 2010, Elon Musk had big plans for Tesla. Listen to his predictions
"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2020-08-18T12:43:04Z"
data-video-section="business"
data-canonical-url="https://www.cnn.com/videos/business/2020/07/30/elon-musk-tesla-ipo-2010-vault-orig.cnn-business"
data-branding-key="vault-by-cnn"
data-video-slug="elon musk tesla IPO 2010 vault orig"
data-first-publish-slug="elon musk tesla IPO 2010 vault orig"
data-video-tags="automakers and manufacturing,automotive industry,banking, finance and investments,business and industry sectors,business figures,business, economy and trade,companies,elon musk,financial markets and investing,financing and stock offering,initial public offering,tesla inc"
data-details="">
Video Ad Feedback
In 2010, Elon Musk had big plans for Tesla. Listen to his predictions
"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2022-03-24T20:52:12Z"
data-video-section="business"
data-canonical-url="https://www.cnn.com/videos/business/2022/03/24/flying-tesla-echo-park-jordan-hook-alex-choi-js-orig.cnn"
data-branding-key="nightcap"
data-video-slug="flying tesla echo park jordan hook alex choi js orig"
data-first-publish-slug="flying tesla echo park jordan hook alex choi js orig"
data-video-tags="california,companies,continents and regions,internet and www,los angeles,north america,social media,southern california,southwestern united states,technology,tesla inc,the americas,united states"
data-details="">
Video Ad Feedback
Did you see the viral flying Tesla? It wrecked this man's car
"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2022-02-10T17:20:16Z"
data-video-section="business"
data-canonical-url="https://www.cnn.com/videos/business/2022/02/10/tesla-autopilot-law-enforcement-crash.cnn-business"
data-branding-key=""
data-video-slug="tesla autopilot law enforcement crash"
data-first-publish-slug="tesla autopilot law enforcement crash"
data-video-tags="accidents,accidents, disasters and safety,automotive industry,business and industry sectors,business, economy and trade,companies,crime, law enforcement and corrections,law enforcement,motor vehicles,tesla inc,traffic accidents"
data-details="">
Video Ad Feedback
Watch: Tesla?in 'Autopilot' mode?crashes into police car
"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2021-11-18T11:49:54Z"
data-video-section="business"
data-canonical-url="https://www.cnn.com/videos/business/2021/11/17/tesla-3-full-self-driving-mode-test-mc-zw-orig.cnn-business"
data-branding-key=""
data-video-slug="tesla 3 full self driving mode test mc zw orig"
data-first-publish-slug="tesla 3 full self driving mode test mc zw orig"
data-video-tags="automotive industry,business and industry sectors,business, economy and trade,companies,company activities and management,continents and regions,motor vehicles,new york (state),new york city,north america,northeastern united states,product development,product innovation,product management,self-driving cars,technology,tesla inc,the americas,united states,brooklyn,computer science and information technology,software and applications"
data-details="">
Video Ad Feedback
CNN tried Tesla's 'full self-driving' mode on NYC streets. It didn't go great
"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2021-03-15T22:29:18Z"
data-video-section="business"
data-canonical-url="https://www.cnn.com/videos/tech/2021/03/15/elon-musk-technoking-tesla-sec-paul-r-la-monica-qmb-vpx.cnn"
data-branding-key=""
data-video-slug="elon musk technoking tesla sec paul r la monica qmb vpx"
data-first-publish-slug="elon musk technoking tesla sec paul r la monica qmb vpx"
data-video-tags="banking, finance and investments,business executives,business figures,business, economy and trade,celebrities,companies,elon musk,financial markets and investing,government organizations - us,labor and employment,richard quest,securities trading,tesla inc,us federal departments and agencies,us government independent agencies,us securities and exchange commission,workers and professionals"
data-details="">
Video Ad Feedback
SEC: Elon Musk officially named 'Technoking of Tesla'
"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2019-03-15T06:38:40Z"
data-video-section="business"
data-canonical-url="https://www.cnn.com/videos/business/2019/03/15/tesla-unveils-new-model-y-lc-orig.cnn-business"
data-branding-key=""
data-video-slug="Tesla unveils new model Y lc orig"
data-first-publish-slug="Tesla unveils new model Y lc orig"
data-video-tags="alternative fuel vehicles,automotive fuels,automotive industry,automotive industry and environment,business and industry sectors,business, economy and trade,california,companies,continents and regions,electric vehicles,motor vehicles,north america,southwestern united states,tesla inc,the americas,united states"
data-details="">
Video Ad Feedback
See Tesla's new Model Y
01:19
Now playing
- Source:
CNN business
New YorkCNN Business
—
Elon Musk is worth $96 billion, making him the fourth-richest man in the world, according to Bloomberg. He’s about to get a lot richer.
Now he’s weeks away from qualifying for the third tranche of options, worth an additional $2.8 billion.
Musk will be awarded the options as the company hits a series of targets both for financial results and market value. One of the two milestones that must be hit for those options to be exercised is that Tesla
(TSLA) shares, which were valued at $372 billion at Monday’s close, must maintain a $200 billion average market value over the prior six months, a target it hit over the course of the last five months.
So even if Tesla shares lose nearly half their current value over the next month, they’d still have a six-month average of $200 billion or greater.
The other milestone is based upon Tesla’s revenue or profit performance. And if analysts’ forecasts are right, Tesla should be able to do that in the current quarter.
The measure of profits used to judge success must be $4.5 billion over a 12-month period. The company nearly reached that over the 12 months ending in June, when it earned $4.4 billion. Its third-quarter forecast is for earnings of $1.4 billion, up about a third from what it earned on that basis a year ago.
If he does get the options, Musk won’t actually own the shares. He has yet to exercise any of the options he received this year or most of what he was awarded in prior years (He did not not receive any options in 2018 or 2019.) Typically, options are exercised only when the investor holding them is ready to sell the shares, or if they are due to expire.
No matter how many options Musk gets this year, they will be only a fraction of his current Tesla stockholdings.
He owns 34 million shares of the stock, a stake equal to about 18% of the company, which is valued $68 billion.
Musk qualified in May for the first tranche of options under his current pay package. At that time the options were worth about $770 million. He qualified for the second earlier this month when the company’s stock price lifted the value of that block of options to $2.1 billion.
As the stock continues to rise, so does the potential value of the options, which is why the two earlier blocks of options are now worth a total of $5.6 billion, while the next block would be worth $2.8 billion, at current prices.
Tesla is about to execute a five-for-one stock split. Although that split will change the total number of shares and options held and outstanding, it won’t change the value of Musk’s holdings.