Serve in 2018, Elon Musk negotiated a controversial pay bundle (pdf). The Tesla CEO agreed to ranking no salary or bonuses in change for a purely efficiency-primarily based entirely compensation procedure. Every time Tesla’s market capitalization crossed a milestone, starting at $100 billion, Musk would ranking Tesla stock choices up to a market cap of $650 billion. Every payday would be worth a total lot of thousands and thousands—and even billions—reckoning on the stock’s fortunes.
At the time, observers doubted the $54 billion electric automaker might per chance well additionally enrich Musk as noteworthy as the pay bundle envisioned. These doubts are gone.
On Jan. 7, Elon Musk surpassed Jeff Bezos as the enviornment’s richest human with an estimated ranking worth of $185 billion, up from exact over $27 billion in 2020. His wealth has been pushed by meteoric stock mark of Tesla, now valued at $773 billion, up seven-fold since final one year.
Bezos’s wealth has tracked Amazon’s valuation in a lengthy exact climb, but plateaued along with the company’s stock mark.
Tesla, within the period in-between, has ascended on the strength of its global auto gross sales, wildly popular brand, and Musk’s vision for a global energy and transportation powerhouse. Recently, the company is now worth larger than all nine of the enviornment’s largest automakers—blended. It’s all allotment of Musk’s “secret” 2006 grasp procedure to promote life like electric autos along with zero-emission energy. And let’s no longer neglect Musk’s Grasp Concept, Phase Deux: ubiquitous electric autos, solar roofs, and stable self-using robo-taxis.
Though the company’s financials don’t essentially aid this kind of stratospheric valuation, Musk has argued the company’s stock mark is ready the lengthy gallop. “Tesla is absurdly hyped up if primarily based entirely on the past,” Musk tweeted in 2017, a time when Tesla became worth exact $37 billion. “A stock mark represents menace-adjusted future cash flows.”