Tesla Motors Inc (NASDAQ:TSLA) granted stock options to top executives to acquire 385,000 shares of the company at the closing price of $139.34 on Monday, reveals a U.S. Securities and Exchange Commission filings on Wednesday.
Tesla director of global communications Liz Jarvis-Shean said, “certain executives were granted new options as part of the company’s annual compensation review of its employees, which had been ongoing for some time.” The director further said the options granted were in the normal course of Tesla’s business, which included options granted on the second Monday of each month.
Record sales of Tesla Model S added more value in 3 days
Just a day after the grant of the stock option, the electronic vehicle manufacturer announced record sales number of the Model S, for the fourth quarter, touching 6,900 units, which beats the earlier forecast by 20 percent. The record sales number boosted Tesla’s stock price to $171.28 at close on Thursday, helping the company to add $12 million more value to the stock options since Monday, says a report from IB Times. Over the past three months, Tesla Motors Inc (NASDAQ:TSLA) shares were down 7 percent; however, since Monday the shares have gained almost 23%. The Palo Alto, Calif.-based company will announce their fourth quarter earnings next month.
Management grants stock options to retain top talents and encourage them to work harder by aligning their objectives with that of the shareholders. The options can be exercised by the executives only after a later performance evaluation of the company.
Breakup and comparison
Tesla’s Chief Technical Officer Jeffrey Straubel was given an option to acquire 220,000 shares. The stocks were worth $30.65 million on Monday against $37.6 million on Thursday.
Gregory Reichow, Vice President of Manufacturing was granted an option to acquire 65,000 shares, which were worth $9.06 million on Monday. At market close on Thursday, the shares were worth $11.11 million.
Tesla’s Vice President for Service and Sales Operations Jerome Guillen was granted an option for 55,000 shares. On Monday, the value of those shares was $7.66 million compared to $9.4 million on Thursday.
Tesla Motors Inc (NASDAQ:TSLA)’S Chief Financial Officer Ahuja Deepak was granted an option to buy 45,000 Tesla shares worth $6.27 million on Monday. Thursday afternoon, the shares were worth $7.69 million.