Musk close to earning first $466m tranche of options in record package

Andrew Cummings
January 16, 2020

Whatever you have to say about Elon Musk, the guy has a sense of humor and Tesla's newest piece of clothing is the proof.

If Tesla shares rise another 7%, Tesla's stock market value will reach $100 billion. "But is he the only individual that could serve in that seat as CEO and deliver that value to shareholders?"

Thanks to strong delivery numbers in the third and fourth quarters of 2019, Tesla stock has been on fire lately, appreciating more than 100 percent in the last three months.

Tesla's market value is now more than that of two automotive giants - Ford and General Motors - combined.

Last week, Tesla's market value reached almost $ 89 billion, exceeding General Motors and Ford's market value for the first time, driven by a surprising third quarter profit, progress in a new plant in China, and above-average results. expected deliveries in the fourth quarter.

"This is the very definition of pay for performance", said Ian Keas to Reuters. "That is the billion dollar question". Tesla's "adjusted" EBITDA does not include share-based payments that reached $ 617 million in the first nine months of 2019. The potential pay package would allow him to buy an additional 20.3 million shares if all of his options vest.

However, Tesla was valued at about $53 billion when shareholders approved the pay package in January 2018 and faced a cash crunch, production delays and increasing competition from rivals, viewed the pay package as massively ambitious because it implied that the company's value could grow as much as ten-fold in 10 years. And now it looks Musk is said to reap huge rewards for Tesla's surge. Tesla is setting up a design research and development center in China to create a "Chinese-style" version of its electric vehicles at the behest company CEO Elon Musk, according to a Wednesday announcement on the official Tesla WeChat account.

Musk has made Tesla from a niche manufacturer with production problems to the world leader in electric vehicles with United States and Chinese factories. In the last seven years, Tesla and Musk seem to have come a long way.

Tesla is also introducing other perks to win over consumers in China's crowded EV market, including price cuts and a US$1,000 bounty for sales referrals.

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