Tesla Inc.’s stock market value surge Monday by more than $1 trillion is a double bonus for chief executive Elon Musk, the electric carmaker’s biggest shareholder.
The stock rose 12.7% on news that Tesla placed its largest order ever from rental car company Hertz.
According to Refinitiv, with Tesla’s stock hitting a record high of $1,024.86, Musk’s 23% stake in the newly minted trillion-dollar company is now worth about $230 billion.
That stake includes more than $50 billion in options that are vested under Musk’s 2018 compensation package.
In addition, Musk is a major shareholder and CEO of rocket maker SpaceX, a private company worth $100 billion as of its October secondary share sale, according to a CNBC report.
Musk receives no pay at Tesla: His pay package provides 12 option installments that are vested when Tesla’s market capitalization and financial growth hit a series of rising milestones. The options allowed Musk to buy Tesla shares for $70 each, a more than 90% discount from their current price.
Last week, Tesla reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $3.2 billion, up 77% from a year ago. That was enough to vest his seventh option tranche, which was valued at more than $8 billion as of Monday.
Tesla’s six-month average stock market valuation is more than $650 billion, clearing the way for all 12 option tranches in Musk’s pay package, should the company reach a higher revenue-related target and lower EBITDA for the remaining five phases. should adjust.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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