Elon Musk scores hat trick of Tesla compensation goals worth $23 billion

With Tesla's strong quarterly report on Wednesday, Chief Executive Elon Musk has scored a hat-trick of performance goals worth a combined $23 billion in new compensation.

The world’s most valuable carmaker posted March quarter revenue and profit that surged past Wall Street estimates as it raised prices in response to inflation. Each tranche gives Musk the option to buy 8.4 million Tesla shares at $70.01 each, a discount of about 90 per cent from Wednesday’s closing price of $977.20. At the stock’s current price, the three options tranches that will vest as a result of Tesla’s March-quarter performance could generate a profit of about $23 billion, or almost $7.7 billion per tranche. 

Late last year, Musk netted $16.4 billion from selling about 10 per cent of his stake in Tesla to meet tax withholding obligations related to the exercise of stock options.