Tesla passed Visa on Monday to become the seventh-largest US company in terms of market capitalization. Tesla shares increased 12.6% on Monday following a stock split, ending the trading session with a valuation of $464.3 billion. CEO Elon Musk has tripled his personal wealth as Tesla's stock increases, which led to him surpassing Mark Zuckerberg to become the third-richest person in the world. Visit Business Insider's homepage for more stories.
Tesla just hit a new milestone. The electric-car company passed Visa on Monday en route to becoming the seventh-most-valuable US company in terms of market capitalization. Tesla shares increased 12.6% on Monday, ending the trading session with a valuation of $464.3 billion, overtaking Visa, which closed at a valuation of $451.1 billion, MarketWatch reported. This came on Tesla's inaugural day of post-split-trading after the company previously said on August 11 that it was pushing for a five-for-one stock split following the company's rally that "pushed shares above $2,000 a piece." "We believe the stock split decision was a smart move by Tesla and its Board given the parabolic move in shares over the past six months," Wedbush analyst Daniel Ives said in a note on Monday. Analysts at Jefferies, a financial services company, more than doubled their price target for Tesla to $2,500 on August 26, up from $1,200, according to Markets Insider. And it wasn't just Tesla that hit a new milestone following the stock split — its CEO, Elon Musk, who has seen his personal wealth triple during the pandemic, passed Facebook CEO Mark Zuckerberg to become the third-richest person in the world.Join the conversation about this story » NOW WATCH: How waste is dealt with on the world's largest cruise ship
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Tesla CEO Elon Musk is on the verge of a $750 million payday, Reuters first reported...Tesla CEO Elon Musk is on the verge of a $750 million payday, Reuters first reported Tuesday morning. Musk stands to receive an option tranche of 1.69 million Tesla shares if the electric car market reaches a six-month average market cap of $100 billion. With Tesla shares sitting near all-time highs, the company's six-month average market cap just reached $96 billion. Visit Business Insider's homepage for more stories. Reuters first reported Tuesday morning that Tesla CEO Elon Musk is on the verge of receiving a massive $750 million payday. The electric-car maker's CEO will receive his first option tranche of 12 tranches total, as outlined in his two-year-old pay package. Each tranche gives Musk the option to buy 1.69 million Tesla shares at $350.02 each. Based off of Tesla stock's Monday closing price of $798.75, Musk could turn around and sell those shares for a total profit of $758 million. Musk will be granted the first tranche of options if Tesla's stock price obtains a six-month average market capitalization of $100 billion. With shares trading just 15% below their all-time high closing price of $917.42, Tesla's six-month average market capitalization is $96 billion. Read more: Tim Bratz went from flipping $14,000 houses to a 3,472-unit portfolio worth $275 million. Here's the 'amazing' investment strategy he employs to build his long-term wealth. If Musk reaches all targets outlined in his pay package, which would culminate with Tesla's market cap reaching $650 billion, the CEO could reap as much as $55.8 billion. However, because new Tesla shares have been issued since this pay package was put in place, that figure is now likely lower. Tesla's current market capitalization of almost $150 billion is more than the combined market capitalization of Honda, Ford, General Motors, Fiat Chrysler, Mercedes-Benz, and Harley-Davidson. Tesla reports first quarter earnings after the market close on Wednesday.Join the conversation about this story » NOW WATCH: Why electric planes haven't taken off yet