In a significant milestone for Tesla Inc, the company has become the first U.S. publicly listed carmaker to be valued at $100 billion. The development also underscores Wall Street’s confidence in an all-electric future.
Tesla shares were last up by 1.4% at $555 after the bell, building on a 7.2% gain during trading when brokerage New Street Research raised its price target to $800.
Tesla’s market valuation also places Elon Musk a little closer to earning the first $346 million tranche of options in the carmaker’s record-breaking pay package. However, Tesla’s $100 billion valuation needs to be maintained for at least a month as well as a six-month average, before Musk can trigger the vesting of the first of 12 tranches of options given to Musk to buy Tesla stock.
In the last three months, Tesla’s stock has more than doubled fueled by its quarterly profit in October 2019, along with news of a production ramp-up in its China factory and better-than-expected annual car deliveries.