- Tram Ho
Elon Musk’s assets soared by $ 2.3 billion in about an hour on Wednesday when Tesla shares rose in the trading session after the fourth-quarter earnings report outperformed expectations and volumes. Model Y and SUV production increased.
In the 10 years since becoming a public company, Tesla has only one quarter profit. If used under strict accounting standards, the company will still record a loss in 2019. However, using the basic accounting standard used by most analysts and investors, Tesla reported a profit of $ 386 million in the fourth quarter, making the whole year of 2019 profit of $ 35.8 million. .
“2019 is a turning point for Tesla,” the company statement said.
The company is also confident that it will continue to grow with bright plans such as the factory in Shanghai has been put into operation or plans to open a factory in Berlin by 2021. Even the company thinks that even With strict accounting standards, the company will soon be profitable.
The aforementioned success has erased controversy over CEO Elon Musk’s capabilities. As a result, Tesla’s stock rose 12% to $ 649 in Wednesday trading on New York, raising the Elon Musk holdings to $ 36 billion according to Bloomberg statistics.
Musk, 48, now owns a fifth of Tesla’s stock, which is a major contributor to Tesla’s wealth, while the Space Exploration stake is worth about $ 14.6 billion.
Tesla shares have been growing steadily since October when the company announced earnings in the third quarter. The company’s market value has now exceeded $ 100 billion and if it stays at this level for some time, Musk will be able to Get a huge bonus. In 2018, Tesla’s board of directors and shareholders approved a compensation plan for Musk, giving him the option to buy shares worth more than $ 55 billion over the next decade. Musk could make $ 346 million in advance if Tesla reached a $ 100 billion market cap.
In order to receive the aforementioned bonus, Musk must retain the company’s market capitalization of over $ 100 billion for both 30 days and an average of the next 6 months. The company must also achieve annual revenue and the EBITDA milestone (profit before tax, interest and depreciation) is set at the same time. The company will also need to report the next quarter’s revenue of US $ 20 billion or EBITDA of US $ 1.5 billion.
With a market capitalization of more than $ 100 billion, Tesla is now bigger than General and Ford combined.
Musk currently works without pay and does not have any bonuses from Tesla.
Source : Genk