Tesla is now the world’s second most valuable carmaker, surpassing Volkswagen. This rise in valuation came after a dramatic rise in share price, pushing its market value to more than $100bn.
This achievement also sets up a massive payout for Tesla’s chief Elon Musk whose bonuses are tied to hitting this target and higher.
The electric carmaker’s share price has more than doubled in size since October 2019 with the firm reporting a rare quarterly profit.
This latest rise makes Tesla second only to Toyota in valuation. Toyota also currently has a stock market valuation of more than $230bn.
Analysts conclude that the rise in valuation shows Tesla’s performance in recent months, in which it opened a factory in China in addition to meeting its production goals.
Also Read:
GM Unveils Futuristic Electric Car, Cruise Origin, That Could Rival Tesla
Throwback Thursday: The Oldest Surviving Video Recording In History
Why Using Your Smartphone While In Transit Leaves You More Vulnerable
Tesla reports it delivered more than 367,500 cars in 2019, an increase of 50% from 2018. Investors are also expecting its new factory to enable it to capture more of the Chinese market.
In spite of this increase, Teslas are still doing smaller sales numbers in comparison to its competitors.
Volkswagen delivered close to 11 million vehicles in 2019, while Toyota delivered more than 9 million vehicles in the first 11 months of 2019.
Tesla is also facing investigations after complaints about unexpected acceleration and battery fires, the company has also never made an annual profit.
Tesla’s rise in value great news for Elon Musk
If Tesla sustains the $100bn valuation, it would unlock the first trench of a $2.6bn compensation package for Elon Musk.
Mr Musk is to receive the payouts in stocks over the period of 10 years, with the first trench when the firm reaches $100bn in market capitalisation and also sustains that valuation over both a month and six-month average.
Tesla’s value was about $55bn when its board gave its approval to the pay deal.
Make sure to follow Plat4om on Twitter @Plat4omLive, on Instagram @Plat4om, on LinkedIn at Plat4om, and on Facebook at Plat4om. You can email us at info@techtalkwithtdafrica.com. Also, don’t forget to subscribe to our YouTube channel HERE.