Tesla’s market capitalisation has exceeded $100 billion, driven by a host of good news. Musk, however, is not yet able to receive his reward. Last week, Tesla reported fourth-quarter 2019 results. Tesla delivered a record 112,095 vehicles in the fourth quarter, with a record installed of energy storage products in the fourth quarter at 530MWh and a 26 percent increase in solar power, the company said. Tesla also revealed that Model Y production is ahead of schedule and that the capacity climb begins in January 2020.
Tesla’s fourth-quarter GAAP operating income was $359 million, with an operating margin of 4.9 percent. GAAP net income was $105 million and non-GAAP net income (excluding equity incentive expenses) was $386 million. Cash and cash equivalents were $6.3 billion in the fourth quarter, an increase of $930 million. Operating cash flow (free cash flow) after capital expenditure was $1 billion in the fourth quarter.
Tesla’s shares continued to rise on the back of positive news such as earnings reports. Tesla shares rose 1.52 percent to $650.57 on Friday, giving it a market capitalisation of $117.262 billion. Tesla is the first U.S. company to have a market capitalisation of more than $100 billion.
Under the plan set by Tesla and CEO Elon Musk, Musk will have no fixed pay, no salary, no cash bonus, and his income is exactly the same as the company’s market value. Capitalization) is linked to operational performance.
Tesla has set 12 market cap targets, each $50 billion more than the previous one, starting at $100 billion.
Musk, however, is not yet able to receive his reward. Media say Tesla needs a month and six months to maintain an average market capitalization of $100 billion to get Musk’s $346 million worth of Tesla stock options. Tesla is in good momentum now, and the hope is still relatively high.
Musk has repeatedly said that Tesla will become a trillion-dollar company in 10 years.