[Asia Economy Reporter Kwon Jae-hee] The market capitalization of U.S. electric vehicle company Tesla surpassed $100 billion (approximately 116 trillion KRW) during trading on the 21st (local time), with its stock price soaring, resulting in a 'jackpot' performance bonus for CEO Elon Musk.
According to Bloomberg News, Tesla's stock surged 7.2% during regular trading hours on the New York Stock Exchange that day and rose an additional 1.4% in after-hours trading.
Tesla's stock price reached $555.1 per share, bringing its market capitalization to $100.1 billion.
After Tesla's market cap exceeded $100 billion, Musk is eligible to receive performance-based stock options worth $346 million (approximately 401.7 billion KRW) if the one-month and six-month averages remain above $100 billion.
Instead of receiving a salary or bonuses, Musk holds performance-based stock options that grant him shares depending on Tesla's market capitalization and business performance.
Tesla's stock price more than doubled after recording an earnings surprise in the third quarter of last year and accelerating the operation of its Shanghai factory ahead of schedule, along with other consecutive positive developments, including the production of the next model, Model Y.
This performance exceeded even the most optimistic forecasts from Wall Street analysts.
Pierre Ferragu, an analyst at New Street Research, stated, "Tesla will sell 2 to 3 million vehicles annually after 2025 and lead the industry in profitability," adding, "Tesla's stock price could rise to as high as $800."
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