Tesla’s market value exceeds one trillion and Musk brings double wealth surge

The market value of Tesla’s TSLA.O soared to more than $1 trillion on Monday, which is a double wealth for the electric car maker’s largest shareholder and CEO Elon Musk.

It is reported that Tesla received the largest order ever from the car rental company Hertz, and the stock price rose 12.7%.

According to Refinitiv’s data, as Tesla’s share price closed at a record high of US$1,024.86, Musk’s 23% stake in the new trillion-dollar company is now worth approximately US$230 billion.

The equity includes options worth more than US$50 billion that have been obtained under Musk’s 2018 compensation plan.

Musk is also the main shareholder and CEO of the rocket manufacturing company SpaceX. According to a CNBC report, SpaceX was valued at $100 billion after a secondary market stock sale in October.

Musk does not receive a salary at Tesla, but obtains 12 batches of options based on a compensation plan. When Tesla’s market value and financial growth reach a series of growth milestones, these options will be vested in Musk one by one. These options allow him to buy Tesla stock at a price of $70 per share, which is more than 90% discount to the current stock price.

Last week, Tesla reported an adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $3.2 billion, an increase of 77% from a year ago. This is enough for him to obtain the seventh batch of options in the compensation package, which as of Monday was valued at more than 8 billion U.S. dollars.

Tesla’s six-month average market value is more than $650 billion, which clears the way for all 12 options in Musk’s compensation plan to belong to him. If the company’s revenue and adjusted EBITDA reach the goal of gradual increase, then the remaining five options can also be included in Musk’s pocket.

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