• Tesla CEO Elon Musk will get a $775-million payout from his stock options
  • It's part of the compensation package he signed in 2018, spreading over 12 tranches
  • Tesla achieved its growth goals in the last four quarters

Elon Musk, the CEO of Tesla, received the first tranche of a massive $775 million stock options payout from the compensation plan he adopted in 2018, as stated in a Securities and Exchange Commission (SEC) document filed Thursday.

The company revealed Musk may now have the option to buy 1.69 million shares, valued at $775 million, as the electric vehicle company hit its growth goals with more than $20 billion in total revenue in the last four quarters.

Tesla's stock price reached $805.81 as the markets closed Thursday and, according to the compensation agreement he signed, Musk now has the option to pay a "strike price" of $350.02 per share.

"As of the date of this proxy statement, one of the 12 tranches under this award has vested and become exercisable, subject to Mr. Musk’s payment of the exercise price of $350.02 per share and the minimum five-year holding period generally applicable to any shares he acquires upon exercise," the SEC document read.

But it's still not known if Musk will exercise this option, per CNBC.

14155033430_9545bcedc3_k Telsa CEO Elon Musk received a massive stock option payout as his car company achieved its growth goals Thursday. Photo: Steve Juvertson/Flickr

Musk owns 20.8% of Tesla shares as of Dec. 31 but he does not get a salary from the company. Rather, Musk went for a compensation package that dictated his payout if Tesla achieved a $20 billion annual revenue and a market capitalization of $100 billion before tax adjustments, amortization and depreciation.

The pay package was crafted to reward Tesla's CEO if the company grows. The conditions are set for 12 tranches, each with its requirements and milestones. As of Thursday, Tesla's worth is $149 billion.

Musk's payout and the company's growth comes as Tesla had to shut down operations in mid-March because of the coronavirus pandemic. The CEO was one of the first to criticize the stay-at-home orders to prevent the virus' spread after county officials said the electric vehicle assembly in California is not an essential business.

In early May, Tesla's shares dropped 10% as the factory restarted May 9 but it has since recovered its losses.