Musk’s Share Worth $30 Billion Due to Impressive Surged of Tesla

The key architect of Tesla, Inc. (Tesla), who is also the majority owner and CEO of aerospace company SpaceX, surged his share in the leading electric vehicles (EVs) manufacturing company due to the rapid increase in sales volume of its operation. With Tesla’s growing performance in the global market, Musk’s shares in the company have now worth $30 million.

Huge Gain in Musk’s Shares Values

Musk, the CEO of the 16 years old Tesla, owns a 19% stake in the EVs manufacturing company and the values of his shares in the company had jumped by $16 billion from the beginning of 2020 to $30 billion due to climbing up Tesla shares.

The remarkable surge of Tuesday’s share price of the company made his personal income a record-breaking compensation package. Musk, who invested his entire salary to the stock market value of the car manufacturing company, has received the fruits of his relentless risk-taking over 10 years in the company. With the rapid growth of electric car sales, Tesla is now worth $650 billion.

Tesla shares have gained over 50% since the company announced its second consecutive quarterly profit last Wednesday, January 29, 2020. According to Reuters, “Tesla shares have climbed about 400% since early June, helped by the company’s better-than-expected financial results and ramped-up production at its new car factory in Shanghai.” This has been a major accomplishment for the electric car maker which is now competing against the leading automobile companies including General Motors Co and BMW.

With the sales surging, the company put its market capitalization at $160 billion in the two consecutive quarters, almost twice the combined value of Ford Motor and General Motors. Currently, the annual growth of the company is ahead of other rivals including BMW and Volkswagen and the success of Tesla’s impressive growth was accredited to Musk’s leadership which transformed the company into a global player.

Tesla’s Performance Since 2018

On Tuesday, February 4, 2020, Tesla share surged as much as 24% before it dipped back to 13.7% at the end of the day. Tesla’s shares gained significantly as its partner, Panasonic Corp. which supplied battery for the electric cars made profit its sales for the first time since the partnership was entered.

According to Reuters, “Tesla was valued at about $52 billion when the company’s shareholders approved the pay package of Musk in March 2018, a time when the company faced a cash crunch, production delays and increasing competition from rivals.”

At present, Musk holds about 34 million shares in Tesla and his compensation package would further allow him to buy another 20.3 million shares. A source reported, when Tesla approved Musk’s package, his salary could be around as much as $55.8 billion if no new shares were issued. However, Tesla has expanded its shares to employees and sold $2.7 billion in shares and convertible bonds in 2019 by diluting the value of the company’s stock.

Despite the impressive surge of Tesla shares, many investors were skeptical about the company’s expected profit, cash flow, and growth. Several Wall Street analysts were in favor of “sell” than “buy” of Tesla shares.

I’m Roshan, a journalist, blogger and music lover. I like covering global news related to finance, business, and technology. Focusing on the collection of true and reliable information, I rely on working by conducting interviews with business leaders and talking to the inside sources of companies.

You can reach out to me at: [email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *