Tesla says it plans to open China design and research center

Larry Ellison’s $1 Billion Tesla Bet Is Paying Off After a Wild Ride

As Tesla shares rise, Elon Musk stands to score the first $346 million of a possible $55 billion payout

For Elon Musk to unlock the full US$50 billion bonus by 2028, he and his team have to increase Tesla's annual revenues to US$175 billion - it is about US$24 billion today.

And as shares continue to soar, Tesla CEO Elon Musk is closer to receiving the first portion of a big pay package that the electric carmaker's board approved in early 2018.

Its been an unbelievable run for the electric automaker to close out the final quarter of 2019. This comes after the electric auto-maker's stock did more than double in the last three months.

Tesla's share price surge has been propelled by increased vehicle delivery numbers, bullish price targets by analysts and Tesla making a big play in the world's largest auto market - China.

Last week, Tesla's market value reached almost $ 89 billion, exceeding General Motors and Ford's market value for the first time, driven by a surprising third quarter profit, progress in a new plant in China, and above-average results. expected deliveries in the fourth quarter.

Musk would earn the first tranche if Tesla's market capitalization hits and stays at $100 billion.

Tesla's first factory outside the United States is in the eastern city of Shanghai, and it started delivering China-made Model 3 vehicles this month.

In a memo to investors in October, the company said the Gigafactory in China was approximately 65% cheaper to build than its Model 3 production systems in the US, and that the facility was capable of producing full vehicles from body to paint to general assembly.

If Tesla shares rise another 7%, Tesla's stock market value will reach $100 billion.

Tesla has already completed an operational target necessary for Musk's options to vest.

For Musk's subsequent tranches to vest under the terms of the 2018 package, the company's market cap would have to continue to sustainably rise by $50 billion increments over the agreement's 10-year period, with the billionaire earning the full package if Tesla's market capitalization reaches $650 billion and the electric vehicle maker achieves several revenue and profit targets. The company would need to report either trailing-four-quarter revenue of $20 billion or EBITDA (minus stock based compensation) of $1.5 billion. Musk now draws no salary, although he owns around 20% of the company.

In 2018, Tesla's board and shareholders authorized an unparalleled compensation plan for Musk, allowing him to earn options worth potentially more than $55 billion over the next decade.

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