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Musk Exercises Options, Gains 286M Tesla Shares
18 Jun
Summary
- Elon Musk gained nearly 286 million Tesla shares.
- No cash was exchanged; Tesla used new shares for costs.
- Shares remain restricted until January 2028, contingent on CEO role.
Elon Musk has boosted his direct stake in Tesla by exercising stock options granted as part of a significant 2018 compensation package. This action, which occurred on Wednesday, resulted in Musk acquiring approximately 304 million shares. Tesla then retained about 17.5 million of these shares to cover the transaction's $7.1 billion cost, leaving Musk with a net gain of nearly 286 million shares. No cash was transferred, and no shares were sold on the open market.
The options exercised were tied to Tesla's 2018 executive pay plan, which focused entirely on performance milestones rather than salary or bonuses. These aggressive targets have since been met, allowing for the exercise of these options. Despite gaining the shares, they remain restricted and will not fully vest until January 19, 2028, with the condition that Musk remains CEO or in a comparable leadership position.
