Technology

Tesla 'very close' to amount 5 autonomous driving technological innovation, Musk states

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Reuters

Chief Executive Officer Elon Musk could pocket up to $1.8 billion in a day due to Tesla Inc's stock surge, which would be the second big gain from the electric auto manufacturer in around two months.

Tesla last week became the highest-valued automaker as its shares surged to record highs and its market capitalization overtook that of former front-runner Toyota Motors.

Hitting a six-month average market capitalization of $150 billion would trigger the vesting of the second of 12 tranches of options granted to the billionaire to buy Tesla stock as part of his 2018 pay package.

With its stock rising more than 500 percent over the past 12 months, Musk qualified for the first block of options on May 28, when the company achieved an average US$100 billion ($145 billion) market cap over the previous six months.

Musk has already achieved targets related to Tesla's financial growth that are also required in order to vest the approaching options tranche.

The Tesla boss will be equipped to buy an additional 1.69 million shares when the board certifies that he has unlocked the second tranche.

That gives the company a current market value of US$258.6 billion ($372.6 billion), and a six-month average of US$138.6 billion ($199.7 billion).

Musk's first tranche was worth about $700 million (roughly Rs. 5,248 crores) in May, when it vested, but its value has since increased along with Tesla's stock price.

Tesla has surged 500% over the past year as the company increased sales of its Model 3 sedan.

Last week, the carmaker reported a much higher second-quarter in vehicle deliveries than had been predicted, despite collapsing industry-wide sales amid the coronavirus pandemic and the global economic downturn. At Tesla's existing inventory price of $1,365.88, Musk would be capable to flip the shares for a profit of $1.7 billion for each tranche.

Tesla can also be developing new heat-projection or cooling systems to enable more advanced computers in cars, Musk said.

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