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Another intriguing aspect is Elon Musk’s CEO performance award, which grants him the right to purchase approximately 304 million Tesla shares at a mere $23.34 each, valid until January 2028. This substantial incentive aligns Musk’s interests with long-term stock performance, motivating him to potentially time his sales during market lows to maximize gains and minimize tax burdens.
When exercising these options, Elon might face the need to sell Tesla shares—possibly in large quantities—to buy these shares at favorable prices. Such moves could exert downward pressure on Tesla's stock temporarily, but over the long term, this strategy signals confidence in the company’s valuation recovery.