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Tesla surges past $100bn market value

Usurping Volkswagen for the first time.

Tesla Inc.’s market value has climbed above Volkswagen’s for the first time to more than $100 billion, a threshold that will trigger a huge payout for Elon Musk if he can sustain the feat for months.

The electric-car maker’s shares soared as much as 5.9% in early trading Wednesday, extending a 31% surge already this year. At the pre-market high of $579.51, Tesla’s market capitalisation was roughly $104.5 billion, exceeding Volkswagen’s $100 billion.

Read: Tesla shares may reach $960 in early 2021, biggest bull says

Musk, Tesla’s billionaire chief executive officer, is eligible to receive the first tranche of an all-or-nothing pay award if the company’s market value stays above $100 billion for a sustained period. On paper, the first chunk of the award would net him about $346 million.

Tesla shares have more than doubled since the company reported a surprise third-quarter profit and told investors it was ahead of schedule opening its factory in China and bringing out its next product, the Model Y crossover. Musk, 48, has built a commanding lead selling electric vehicles over established automakers.

Volkswagen is the world’s largest car manufacturer, selling 10.97 million vehicles last year. Tesla delivered about 367 500.

Wall Street’s most bullish analyst on Tesla was behind Tuesday’s rally. New Street Research analyst Pierre Ferragu predicted the company will sell 2 million to 3 million cars per year after 2025 at industry-leading margins. He raised his price target by $270 to $800, the highest among analysts surveyed by Bloomberg.

© 2020 Bloomberg L.P.

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This from a young fellow from Pretoria! Brilliant man – bigger than Volkswagen!

Where is the next local chap like this( and I mean a person like Machiel Le Roux not a Koos Bekker ie a real business creator-not throw others people at foreign companies type?)

Perhaps we cannot claim his successes as south Africans,
But you can’t help but be proud of Elon!

If ever the Brain Drain had a poster boy, Musk would be it.

We can compile a compelling list of South African born legends living abroad, but sometimes very hard to call them “our own”. Most of them were merely punched out the womb on our soil. I’m sure, however, that Musk would sit on top of that throne across all categories.

Musk for Businessman

Dave Matthews for Musician

Trevor Noah for Comedian

Charlize Theron for Actor

Mark Shuttleworth for Astronaut

JRR Tolkien for Author

Candice Swanepoel for Legs

Mike Horn for Adventurer / Explorer

Sport is a minefield I’ll avoid !

Who else ???

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