(PatriotWise.com)- Monday, Tesla Inc.’s stock value surged beyond one trillion dollars, fueled in large part by Hertz rental car company’s announcement that it placed the largest ever order of Teslas for its fleet of rental cars.
This of course is great news for Elon Musk Tesla’s CEO and largest shareholder.
Tesla ended Monday on a record-high close of $1,024.86 per share. Musk’s 23 percent stake in the company is now worth around $230 billion, including options worth over $50 billion that have vested under Musk’s 2018 compensation package.
Additionally, Musk is also a major shareholder and the CEO of SpaceX, a private rocket maker worth $100 billion as of an October secondary share sale.
While Musk receives no salary at Tesla, his pay package provides twelve options tranches that vest when Tesla’s market capitalization and financial growth hit a series of rising milestones. The options permit Musk to buy Tesla shares at $70 each which is now a discount of more than 90% from Tesla’s current share price.
Last week, Tesla reported adjusted earnings of $3.2 billion before interest, taxes, depreciation, and amortization — up 77 percent from the year before. As of Monday, that adjusted earning was enough to vest his seventh options tranche, worth over $8 billion.
With Tesla’s six-month average stock market valuation at over $650 billion, Musk is well on the way to achieving all twelve of the options tranches in his pay package, provided the company reach increasingly higher targets related to revenue and adjusted earnings before interest, taxes, depreciation, and amortization for the remaining five tranches.
Earlier this month, Musk announced that Tesla would be moving its headquarters out of California to Austin, Texas.
Musk announced the move in a shareholders’ meeting, telling them that Tesla’s HQ and future programs will be run out of Texas and Nevada. Meanwhile, Musk said the fate of Tesla’s Fremont, California plant remains up in the air, saying that it will depend on how Tesla is treated by California in the future.