Tesla joins $1 trillion club after 12% increase in stock value
The surge in Tesla Inc’s stock market value beyond $1 trillion on Monday is a double bonanza for Chief Executive Elon Musk, the electric car maker’s largest shareholder.
The stock rallied 12.7% on news that Tesla landed its biggest-ever order from rental car company Hertz.
With Tesla’s stock at a record high close of $1,024.86, Musk’s 23% stake in the newly minted trillion-dollar company is now worth about $230 billion, according to Refinitiv.
That stake includes options worth over $50 billion that have 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 an October secondary share sale, according to a CNBC report.
Musk receives no salary at Tesla: his pay package provides 12 options tranches that vest when Tesla’s market capitalization and financial growth hit a series of rising milestones. The options let Musk buy Tesla shares at $70 each, a discount of more than 90% from their current price.
