Each tranche of options, once unwavering, allows Musk to buy up to 1,688,670 Tesla shares at a price of $US 350.02 per share or at the closing price at the time of the deal. Therefore, if Tesla stock trades exactly at the level of 539.46 $US needed to achieve a valuation of $US 100 billion, it would essentially make a profit of $US 189.44 per share, making the entire first tranche just under $US 320 million. That deal was valued at more than $2 billion at a company subject to the Securities and Exchange Commission, but Musk has yet to get value out of it and is a prime example of the complexity of CEO compensation. Tesla, Elon Musk and U.S. The Securities and Exchange Commission on Friday struck a deal that gives the CEO the freedom to use Twitter — under certain restrictions — without fear of being held in contempt for violating a previous court order. The change to the deal came after Musk tweeted on Feb. 19 that Tesla would produce "about" 500,000 Model 3s this year. This seemed to conflict with the company`s official forecast to deliver a total of 360,000 to 400,000 cars in 2019 – including the Model S and Model X – since Tesla normally supplies almost every car it makes. (However, last week, the company said it expected 2019 to end with more inventory, with production being "significantly higher" than deliveries.) The new agreement, presented on Friday, addresses this ambiguity by listing the types of statements to be verified.
These include statements about Tesla`s financial position, intended or potential agreements, production figures, performance forecasts, financing or credit agreements, and Musk`s own transactions with the company`s securities. Tesla shares rose 1.4% after the deal was announced, to $238.50 after trading on time, lifting a cloud hanging over Musk, as Tesla tries to get production of its main vehicle, the Model 3 sedan, off the ground while making a profit. The two sides filed a request late Friday to amend the deal reached last year over the "secure financing" debacle that initially led the SEC to attempt to install oversight of Musk`s tweets. U.S. District Court Judge Alison Nathan, who led the case, approved the change from Friday to April 30. Musk can tweet as he pleases, except when it comes to certain events or financial milestones. In these cases, Musk must obtain prior approval from a securities attorney, in accordance with the agreement submitted to the federal court in Manhattan. Diamond said the new language gives clarity to the original agreement and significantly limits Twitter`s use of Musk.