Tesla overtook Volkswagen as the world’s second most valuable car maker, after a dramatic rise in share price pushed its market value to more than £76.1bn. The company has exceeded Volkswagen Group and is behind Toyota. The time frame for Tesla’s rise is shockingly short.
The rise in price reflects Tesla’s performance in recent months, during which it has opened a factory in Shanghai and met its production goals. This month, Tesla said it had delivered more than 367,500 cars last year – up 50% from 2018. Investors expect the new factory to act as a springboard that will allow it to capture more of the Chinese market.
Although Mr Musk’s company has some way to go to catch up with the Japanese car making giant. Toyota has a stock market valuation of more than $230bn.
If Tesla sustains the $100bn valuation, it could unlock the first piece of a $2.6bn compensation package for Mr Musk. The plans calls for Mr Musk to receive payouts in shares over 10 years, with the first award contingent on the firm reaching $100bn in market capitalization and sustaining that value over both a month, and six-month average.
Tesla also had to reach $20bn in revenue and earn $1.5bn, after adjusting for items like taxes – thresholds the carmaker reached in 2018.