$100-billion capitalization means Tesla has surpassed Volkswagen and is second only to Toyota

Мы already wrotethat Tesla became the first US automaker listed on the stock exchange, whose market value exceeds $100 billion. This achievement, among other things, means that the company surpassed the huge automaker Volkswagen in value and became the second largest automaker in the world.

The milestone could also, among other things, allow CEO Elon Musk to receive huge payouts for achieving this goal. Tesla's share price has more than doubled since October, when the company reported quarterly earnings (which is still rare for Tesla). Shares of the American manufacturer rose 4% on Wednesday, making the company the second largest after Toyota - certainly an outstanding achievement.

Mr. Musk's companies may not be so easy to overtake the Japanese automaker: Toyota is valued at more than $230 billion on the stock market. Some analysts say the rise in stock prices reflects Tesla's performance in recent months, during which it opened a large factory in Shanghai and hit its stated production targets.

This month, Tesla said it delivered more than 367 vehicles last year, up 500% from 50 results. Investors expect the new plant to be a springboard that will allow the company to significantly expand its share of the Chinese electric vehicle market.

Despite market valuations, Tesla remains only a small fraction of its competitors in terms of car output. For example, Volkswagen delivered nearly 11 million vehicles to the market last year, while Toyota sold more than 9 million in the first 11 months of 2019.

Tesla has also never made a profit on a yearly basis and has recently been facing investigations after complaints of battery fires and unexpected acceleration of an electric car. The company is due to report its latest quarterly results this month - we'll see if it stays up or posts a loss again.

If Tesla's market value stays above $100 billion for a month and on average for half a year, this could unlock the first part of the $2,6 billion compensation package promised to Elon Musk: he will start receiving stock payments calculated for 10 years. The other condition is a turnover of $20 billion and net income of $1,5 billion after taxes and other things - these are the goals Tesla achieved in 2018. When the deal with Elon Musk was made, the company was valued at $55 billion.

Source: 3dnews.ru