- Tram Ho
Tesla has become the most valuable company and in some ways the most profitable car manufacturer in the world. However, few people know that only a short time ago, this company was on the verge of bankruptcy.
CEO Elon Musk tweeted this week that in less than a month the company will file for bankruptcy when it has difficulty getting its best-selling Model 3 to market.
When asked by an account on Twitter how long Tesla was about to go bankrupt, Elon Musk replied, “It’s been about a month. The production of the Model 3 has caused a lot of pressure and difficulty. for a long time, from mid-2017 to 2019. Both production and delivery activities stalled. ”
Tesla fell into a serious cash shortage as losses piled up and had difficulty reaching its Model 3 production goal. However, Musk did not immediately disclose that the company was on the verge of bankruptcy. Although he joked about filing for bankruptcy on April Fool’s Day 2018, of course no one believed it to be true.
Currently, those difficulties have fallen into the past.
Tesla recently reported steady earnings, record highs and strong cash flows. As a result, Tesla shares are up more than 400% this year.
As a result, Elon Musk has been continuously awarded. Specifically, this CEO is eligible to receive the 4th bonus share of the bonus package with 12 waves approved by the company’s board of directors in 2018.
The bonuses for Musk are calculated and executed based on two criteria: Tesla’s business goals in terms of revenue, profit, and capitalization.
In terms of capitalization, Tesla has outstripped its fourth bounty bounty target of a 6-month average of $ 250 billion. As of October 23, Tesla’s market cap was $ 393 billion. This electric car company surpassed the $ 250 billion market cap for the first time in July 2020.
In terms of business goals, last week, Tesla announced its third-quarter profit, in which its pre-tax profit, depreciation and amortization (EBITDA) profit reached $ 1.8 billion. Overall, over the past 12 months, this figure has reached more than $ 5 billion – surpassing the $ 4.5 billion target needed for Musk to receive his fourth bonus, according to a report submitted to the US Securities and Exchange Commission on October 26.
Musk’s bonus package includes stock options, allowing him to buy a certain amount of Tesla stock at a much lower price than current price. Each bonus allows Musk to buy 8.44 million shares for $ 70.
At the closing price of $ 420.63 per share on October 23, Elon Musk’s fourth bonus is worth $ 3.55 billion and he only costs $ 591 million to own. However, the Tesla CEO cannot sell these shares for at least five years, according to the bonus package.
Source : Genk