Elon Musk earns first performance-based payout from Tesla, worth more than $700 million

The tranche is comprised of about 1.7 million shares of Tesla, and would be valued around $775 million based on today’s closing market value. Shares in Tesla closed at $805.81 on Thursday, and the options have a strike price of $350.02.

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Tesla stockholder Richard Tornetta is challenging the compensation plan in a lawsuit against Musk and members of Tesla’s board. Tornetta alleged in the lawsuit that Tesla’s board breached its fiduciary duty by awarding Musk excessive compensation.