The latest boost to Tesla stocks appears to qualify Chief Executive Elon Musk for a US$700 million payday. — AFP pic
Shares of Tesla Inc jumped more than 8 per cent yesterday, putting Tesla's market capitalisation at US$141.1 billion at the close. More importantly for Musk, Tesla's stock market value reached a six-month average of US$100.2 billion, according to an analysis of Refinitiv data. Each tranche gives Musk the option to buy 1.69 million Tesla shares at US$350.02 each. At Tesla's closing stock price of US$761.19, Musk would theoretically be able to sell the shares for a profit of US$694 million.
That tweet sent Tesla's stock tumbling 10 per cent, shocking shareholders. Tesla, whose California factory is closed as part of the state's coronavirus-related lockdowns, posted its third quarterly profit in a row last week.