Elon Musks Tesla has reached an astounding valuation of $100 billion after the electric car makers share price surged past $591.78 yesterday morning. This is the first time in history that a car maker has reached these heights in value.

General Motors and Ford

In fact, Tesla is now worth more than General Motors and Ford combined. Remember that General Motors and Ford have a 100 year history and one up on Tesla in terms of time making cars. Ford has only recently entered the electric race with the Ford Mustang Mach-E. Closer to home, Fords focus on Hybrids could be . good for South Africa in the short terms as we fall further behind the supply curve of electric car unit supply and charging infrastructure (load shedding and all…).

General Motors has crowned the Cadillac as it’s flagship for leading the charge into the electric era saying they will produce 20 new electric cars by 2023.

Tesla have had missteps

But as a result, pure play Tesla leads the charge in electric cars globally and demand is now reflecting in the share price. Expansion into China has also been a big help to Tesla after all the missteps:

  • Elon Musk wanting to take the company private
  • The epic fail of the Tesla Cybertruck windows shattering at launch

Elon Musks $346m payout

As a result of the valuation of electric car Tesla reaching a $100b valuation, Elon Musk stands to gain from a share option payout of $346 million. While there are other milestones Tesla has to reach before he can get paid:

  • The share price staying stable for a trailing average 6 months above a valuation of $100b
  • Reaching a 4 quarter trailing revenue target of $20b or
  • a 4 quarter EBITDA of $1.5b

The payout is being challenged in court by board member Richard Tornetta, claiming that the payout is excessive.

Elon Musk doesn’t draw a salary from the electric car maker Tesla and owns 20% of the company. But, all plans go well, he stands to earn $55 billion over the next decade.