The electric car maker has just announced that its CEO bought some extra Tesla shares, a transaction that could potentially bring him around 100 million dollars.
Elon Musk sees great opportunities for Tesla Motors in the future and recently decided to invest in his beliefs. According to a statement from a Tesla spokesperson, the CEO increased his investment in Tesla by exercising and holding 532,000 stock options, a move that worth approximately 100 million dollars in current value. However, Musk did not sell any shares even though he had to pay more than 50 million dollars in taxes in connection with the exercise. Instead of selling, he used cash to pay both the taxes and the exercise price, the spokesperson said. At the time of the purchase, Tesla’s stocks were trading for about 191 dollars, but Musk bought them at the initial price of only 6.63 dollars each – a price registered before the company went public in 2009. Some reports are indicating that Musk owns around 29 million shares, which is about 22 percent of the company.
This transaction comes before Tesla reports on its fourth-quarter earnings next week and unveils its new model sometime in March. After the company barely hit its 2015 sales target last year, reaching a total of 50,580 deliveries in the end, Tesla has high hopes for the future from its new models, especially from the upcoming affordable 200 miles range Model 3 electric car set for a debut next month. “It’s going to be probably the most profound car that we make,” Elon Musk said. “It will be a very compelling car at an affordable price.”