Tesla CEO Elon Musk on verge of $750 million payday as stock floats near record highs

• Tesla CEO Elon Musk is on the verge of a $750 million payday, Reuters first reported Tuesday morning.
• Musk stands to receive an option tranche of 1.69 million Tesla shares if the electric car market reaches a six-month average market cap of $100 billion.
• With Tesla shares sitting near all-time highs, the company's six-month average market cap just reached $96 billion.
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Reuters first reported Tuesday morning that Tesla CEO Elon Musk is on the verge of receiving a massive $750 million payday.

The electric car marker's CEO will receive his first option tranche of 12 tranches total, as outlined in his two-year-old pay package.

Each tranche gives Musk the option to buy 1.69 million Tesla shares at $350.02 each. Based off of Tesla stock's Monday closing price of $798.75, Musk could turn around and sell those shares for a total profit of $758 million.

Musk will be granted the first tranche of options if Tesla's stock price obtains a six-month average market capitalization of $100 billion.

With shares trading just 15% below their all-time high closing price of $917.42, Tesla's six-month average market capitalization is $96 billion.

Read more: Tim Bratz went from flipping $14,000 houses to a 3,472-unit portfolio worth $275 million. Here's the 'amazing' investment strategy he employs to build his long-term wealth.

If Musk reaches all targets outlined in his pay package, which would culminate with Tesla's market cap reaching $650 billion, the CEO could reap as much as $55.8 billion. However, because new Tesla shares have been issued since this pay package was put in place, that figure is now likely lower.

Tesla's current market capitalization of almost $150 billion is more than the combined market capitalization of Honda, Ford, General Motors, Fiat Chrysler, Mercedes-Benz, and Harley-Davidson.

Tesla reports first quarter earnings after the market close on Wednesday.