TESLA's market capitalisation soared past the $100bn (£76bn) mark yesterday as shares rallied, making it the world's second most valuable car maker and putting chief executive Elon Musk in line for a big payday.

Tesla shares rose more than eight per cent yesterday to hit an intraday high of $594.48, pushing its market capitalisation up to $106bn — more than General Motors and Ford combined. Shares settled 4.1 per cent up at the bell.

A compensation scheme approved by the Tesla board in 2018 for Musk could net him a sizeable payout if the rally continues.

Tesla's market value must stay above $100bn for both a one-month and sixmonth average, after which Musk would be awarded the first tranche of stock options at around $346m.

The tech billionaire, who is also the chief executive of Space X and hyperloop startup the Boring Company, currently takes no salary from his role at Tesla and owns a stake of around 20 per cent in the electric car maker.

The plan increases up to the value of $55bn across 12 tranches, should Tesla maintain its success over the next decade.

The share price jump puts Volkswagen in third place with a market capitalisation of $90bn, while Toyota pulls ahead at $200bn. Tesla's share price has more than doubled over the last three months, following strong car delivery numbers and the opening of its first gigafactory in China. The firm's fullyear results are expected next week. The news came as US President Donald Trump called Musk a "great genius" at Davos yesterday.

(c) 2020 City A.M., source Newspaper