Elon Musk does not receive salaries from Tesla, but will be richer in 2022: why

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Elon Musk is the richest man in the world according to Forbes. His fortune may continue to increase.

Photo: Maja Hitij/Getty Images

Although Elon Musk’s shares of Tesla have lost nearly $30 billion this year, after a 12% drop, the founder of the electric car company will continue to earn millions of dollars.

Based on market and financial trends, Musk is expected to make big profits over the next year, according to financial analysts, CNN reported.

One of the reasons why it is believed that the founder of Tesla will increase his fortune has to do with the fact that the brand will report high financial increases in 2022, which will represent billions of dollars for Musk by award of shares.

Because of how Tesla’s business model is designed, the also owner of SpaceX does not have a remuneration or cash bonus. Musk receives stock options based on the company achieving certain financial and market value goals.

In 2018, the businessman born in 1971 was allocated 101 million split-adjusted shares that would be awarded in 12 equal tranches as the company achieved those goals.

For now, market value targets have been met, although Tesla’s recent decline left it off the list of companies with a $1 trillion market capitalization.

In contrast to the above, seven of the financial goals were achieved, two of them in 2019, two in 2020 and three in the first nine months of 2021. So has already received 59 million of the 101 million of the allocation that was raised.

Analysts expect the company to hit all five of its remaining financial targets this year for Elon Musk to make the entire sum he raised in 2018.

“With Tesla’s growth trajectory, I’d be surprised if it didn’t get all five tranches this year if all targets are met,” said Dan Ives, technology analyst at Wedbush Securities.

Due to the above, the technological entrepreneur could agree to buy 8.4 million shares for an affordable price of $70.01 per share, the 2018 share price, when the targets were set.

Today Tesla’s share price is equivalent to $930 dollars, that means that each option tranche would be worth $7.3 billion dollars and the five tranches would add up to $36.3 billion dollars.

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