Tesla Inc became the first publicly listed US carmaker to reach $100 billion worth in stock market valuation in extended hours trading on Tuesday. This came a month after the electric car maker’s stock reached $420, on which CEO Elon Musk said he would take Tesla private.
In a tweet in August 2018, Musk said that he had “funding secured” to privatize Tesla when its stock was at $330. Musk later on discarded the idea due to pressure from investors and regulatory concerns.
Tesla’s shares were last at $555, up 1.4% at market closing. It gained 7.2% at trading when New Street Research changed its stock price target to $800.
The increase in Tesla’s market value brings Musk closer to the first $346 million options tranche.
The $100 billion valuation has to stay for a one-month and six-month average to prompt the first 12 vesting of options tranche that was granted to Musk to buy Tesla stock.
Tesla stock has doubled in a span of three months due to better-than-expected quarterly profit in October, production ramp up in its China factory, and rare annual car deliveries.