Tesla shares rose more than 4000% after 10 years

Tesla IPO 10 years ago, their stock price at that time was 17 USD / 1 share, higher than expected before the IPO is only 14-16 USD / 1 share.

Through the IPO, Tesla raised $ 226 million, the share price sublimated in the next session, up 41% to close the session at $ 23.89 per share. Currently, the stock of the electric car manufacturer is trading at $ 1,009.35 per share, which means that their stock has increased by 4.125% compared to the time of the IPO.

Outstanding performance has put Tesla in the “elite” stocks with Netflix – becoming the best stocks in the S&P 500 index in 2010. This also means that Tesla shares better than the names. Technology age like Amazon, Apple or a few other big car manufacturers.

Of course, Tesla shares have experienced many ups and downs, such as a 30% drop in a month after August 7, 2018, CEO Elon Musk tweeted that he had a “capital guarantee” to put The company becomes a private company. Shortly thereafter, the US Securities and Exchange Commission accused Musk of misleading the public and both Musk and Tesla personally paid a fine of $ 20 million.

However, the company’s stock has rebounded strongly since the beginning of 2020 when Tesla put its factory into operation in Shanghai and began manufacturing Model Y cars at its US plant. Investors believed in the company’s commitment to deliver the Semi electric pickup, the Cybertruck truck line and improve the self-driving car technology. Although the Covid-19 pandemic caused the California plant to close for weeks, Tesla shares were up 140% this year.

Since the IPO, Tesla has never achieved a profitable year. So far, the company has only reported 7 profitable quarters, the first is the first quarter of 2013. Currently, they have had 3 consecutive quarters of profit.

Tesla stock surged also helped Elon Musk achieve the KPI set before and received a huge bonus of up to $ 750 million.

This is the first of the 12 installments mentioned earlier in the bonus package for Musk every time Tesla reaches a new capitalization milestone.

Each time Musk will receive the right to buy 1.69 million Tesla shares at $ 350.02 per share. Based on the stock price at the close of the day at $ 798.75 per share, Musk could sell the shares and earn $ 758 million.

Previously under the agreement, if Tesla’s share price sustains a market cap of over $ 100 billion for 30 days and averages for 6 consecutive months, Musk will receive the first reward.

If Musk reaches all of the KPIs set forth in the reward agreement, which translates into a market capitalization of $ 650 billion, Tesla’s share will bring Musk $ 55.8 billion. However, there is no guarantee that this value can be converted into a zero or cash equivalent.

Tesla’s current market capitalization is US $ 187 billion, more than the capitalization of Honda, Ford, GM, Fiat, Chrysler, Mercedes-Benz and Harley-Davidson combined.