Tesla stock is seen rising further on Monday following on from last week’s strong dealing.
Tesla shares are set to add to Friday’s strong gains, with premarket deals pointing to an extra 6.4% rise on Monday after the 10% advanced marked at the end of last week.
Priced at US$1,544 the stock is up some 260% in the 2020-to-date, and, gives the electric auto-maker a market capitalisation of close to US$290bn.
At Friday’s close Musk’s own stake in Tesla had grown by over US$6bn.
It reportedly tees up the rocketman for his latest bumper payday with US$1.8bn potentially due resulting from his incentivisation deal at Tesla.
In May, Musk landed US$700mln after the first market valuation thresholds were met.
Subsequent levels of the twelve tranches that make up his package (worth US$55bn in aggregate) are set to be triggered as the market cap rises and is sustained in intervals of US$50bn.
The options-based remuneration will, however, see the vested equity bunkered for five years before they can be cashed out.
It comes as the electric auto-maker has been achieving ‘solid’ delivery volumes and increasing confidence on Wall Street that Musk’s revolutionary ambitions can be realised (even in the face of global pandemic).
Musk, perhaps the closest thing to a real-world Tony Stark or Lex Luther, is simultaneously revolutionising multiple industries – motor vehicles, renewable energy, battery power – whilst reinvigorating America’s space business, boring giant holes beneath Los Angeles and working on technologies to directly integrate humans with computers.
It is fair to say his approach is at different dimension to the traditional, passive investment of Warren Buffett. The so-called ‘Oracle of Omaha’ is known for his personal frugality and his famous investment ethos can mostly be boiled down to ‘find a good asset that’s undervalued by everyone else, buy a part of it, then hold and wait’.
That’s not to denigrate the model which is decidedly long-termist and defensive amidst market volatility and short-term economic strife.
Both men are followed by the business-minded public with intense attention and almost god-like idolisation, though the difference between the two are quite apparently stark and material.
One is more traditional and conservative, while the other is a futurist with an eccentric persona
Indeed, it would be unthinkable that ’s stock price will on any given day fall 10% as Warren impulsively smokes cannabis on a live internet podcast.
Although the generation gap is already something of a void, the valuation gap has closed and now evidently Musk ‘riches’ exceed those of Buffett – according to the Bloomberg Billionaires Index, at least.
What Musk owns
Elon Musk is very much a capitalist of the…
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