Tesla market cap hits $100 billion, Elon Musk could be in for massive pay day

Tesla’s good fortune could add to founder Elon Musk’s personal fortune—in a big way.

The automaker’s market cap has hit $100 billion and that sets into motion an option compensation plan for Musk that ultimately could be worth $55 billion or more. The first payment in that plan is for $346 million in shares.

The payout won’t come immediately, though. In order for Musk to be eligible, Tesla’s market cap must stay above $100 billion for both a 30-day and six-month trailing average. The automaker must also hit revenue and EBITA milestones.

The next milestone in the payout would kick in when Tesla hits a $150 billion market cap and they continue until the company has a market cap of $650 billion.

The potential size of the payout has ruffled the feathers of some investors, though. Last September, a judge in Delaware ruled the Tesla board would have to defend the compensation package in a lawsuit. Shareholder Richard Tornetta is seeking to have the package rescinded and the board overhauled.

Musk does not draw an annual salary at Tesla, but owns roughly 20% of the company’s stock.