Exchanging time for space has always been one of the most important ways for American technology companies to digest valuations.
The main ways to bind and receive remuneration with the company are presented in stocks or options, which is also the most important way to maximize benefits, and Musk is definitely a representative figure who takes this model to the extreme.
On April 21, Tesla released its first quarter 2022 financial report, which showed that the company's first-quarter revenue was $18.756 billion, an increase of 81% over the same period last year; net profit attributable to common shareholders was $3.318 billion, an increase of 658% over the same period last year.
Handing over this financial report that exceeded market expectations made the market excited.
Affected by the good news, Tesla jumped 10% higher on April 22, and by the close, Tesla rose 3.23%, and the daily market value increased by more than $30 billion.
To achieve such excellent results, there are mainly the following factors:
First, the increase in the volume of deliveries. In the past two years, new energy vehicle companies have begun to enter an acceleration period, due to the continuous cross-border entry of enterprises into the industry, so the new energy vehicle industry has rapidly changed from a blue ocean to a red ocean, and the delivery volume is the most important factor to test car companies.
Entering 2021, the global economic situation began to become more and more complex, experiencing the epidemic and the tight global chip production capacity, and new energy vehicle companies have spent a difficult year. By 2022, due to the recurrence of the epidemic, the situation of new energy vehicle companies has not improved significantly. It is foreseeable that the volume of deliveries will remain the most important factor affecting the enterprise for a long time to come.
According to the financial report data, in the first quarter of 2022, Tesla's global delivery volume exceeded 310,000 units, an increase of 68% year-on-year. Among them, Tesla Sold 65,800 vehicles in China, an increase of 85% year-on-year. Tesla said that the core of the company in 2022 is still to increase production capacity.
Second, the impact of average selling prices. Since the end of last year, Tesla has taken the lead in raising the price of products, and tesla China has adjusted prices more than 3 times in March alone, with an average price adjustment of more than 10,000 yuan.
In this regard, Musk believes that although Tesla's profit in the first quarter hit a record high, the price increase seems unreasonable, but the company's orders are relatively sufficient, and orders for some models are even queued until next year. At present, the pricing given by Tesla has actually taken into account the supplier costs and logistics costs that may occur in the next six months to one year, and the cost increase is almost inevitable.
According to the financial report, Tesla's gross profit margin for bicycles in the first quarter of 2022 has risen to 32.9%, an increase of more than 6% year-on-year, and the gross profit per sale of Model Y is more than 100,000 yuan at the sales price of Model Y. Some analysts pointed out that with the further improvement of production capacity in the future, the gross profit margin of its bicycles will continue to increase.
Third, the cost of cycling has decreased and the sales of regulatory points have increased.
Tesla's soaring performance is not only good for the company, Musk himself has become the biggest beneficiary, as we all know, Musk himself in Tesla cash salary is close to zero, and the main way Tesla pays its salary is equity. The main determinant of Musk's own unlocking of compensation is the growth of market capitalization and financial goals.
It is reported that in 2018, Tesla set a ten-year mission goal for Musk, and if Musk successfully completes, he can get $78 billion in stock options.
Specifically, the compensation plan is divided into two levels: stock price and performance. Musk's stock options are divided into 12 levels at the share price level, and the total reward package is 20.264 million Tesla common stocks, accounting for 12% of The total share capital of Tesla that year, and the number of shares in each level is about 1.69 million shares. The performance calculation is more complex, taking into account revenue and adjusted EBITDA.
According to Tesla's performance and stock price, Musk unlocked the tasks of 9 to 11 batches of 12 rewards and successfully unlocked a $23 billion compensation package. Some analysts pointed out that in the future, Musk is likely to sell Tesla shares again to acquire Twitter.
On the whole, I think that the reason why Musk can have today's wealth is inseparable from his "desperate bet" on Tesla, and with the completion of tesla's German factory, Tesla's production capacity will be further released in the next few years, so musk may become the world's first person worth more than $500 billion.