Tesla's $1 trillion value a double bonanza for Musk

The surge in Tesla Inc`s stock market value beyond $1 trillion on Monday is a double bonanza for Chief Executive Elon Musk, the electric car maker`s largest shareholder.

The stock rallied 12.7% on news that Tesla landed its biggest-ever order from rental car company Hertz.

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With Tesla`s stock at a record high close of $1,024.86, Musk`s 23% stake in the newly minted trillion-dollar company is now worth about $230 billion, according to Refinitiv.

That stake includes options worth over $50 billion that have vested under Musk`s 2018 compensation package.

In addition, Musk is a major shareholder and CEO of rocket maker SpaceX, a private company worth $100 billion as of an October secondary share sale, according to a CNBC report.

Musk receives no salary at Tesla: his pay package provides 12 options tranches that vest when Tesla`s market capitalization and financial growth hit a series of rising milestones. The options let Musk buy Tesla shares at $70 each, a discount of more than 90% from their current price.

Last week, Tesla reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $3.2 billion, up 77% from the year before. That was enough to vest his seventh options tranche, worth over $8 billion as of Monday.

Tesla`s six-month average stock market valuation is over $650 billion, clearing the way for all 12 of the options tranches in Musk`s pay package, should the company reach increasingly higher targets related to revenue and adjusted EBITDA for the remaining five tranches.