Tesla’s Chief Executive, Elon Musk is poised to get a $23billion bonus after electric car company Tesla reported its record quarterly profits.
The news, combined with projections of another strong year of production growth in 2022, saw Tesla stock rise 3.2 percent – despite lingering supply chain woes.
The expected windfall to Musk’s already enormous fortune came as the businessman secured a $46.5 billion package to fund his attempt to launch a takeover of the social media company, Twitter. He already holds 9.2 percent of the company.
On Thursday, Musk said he has the funds necessary to make an offer for the rest. Although Twitter’s board plans to activate a ‘poison pill’ to prevent him from taking over if he comes to own more than 15 percent of the company.
Tesla – the world’s most valuable automaker – said its revenue was $18.8 billion in the first quarter ended March 31, versus estimates of $17.8 billion, according to IBES data from Refinitiv. This is up 81% from a year earlier.
Revenue from sales of its regulatory credits to other automakers jumped 31% to $679 million in the first quarter from a year earlier, helping boost revenue and profits.
Its earnings per share were $3.22, surpassing analysts’ estimates of $2.26.
Tesla’s pre-tax profit (EBITDA) per vehicle delivered rose by more than 60% to $16,203 in the latest quarter compared with a year earlier.
The results let Musk meet a hat trick of performance goals worth a combined $23 billion in new compensation.
Tesla’s figures were boosted by the delivery of a record 310,000 cars in the first quarter as the firm shrugged off challenges in its supply chain including Covid-19 outbreaks and computer chip shortages.
The figures put him in line for the next three tranches of a bumper share award agreed in 2018 if he managed to increase its market value to $650billion within ten years.
The bonus is structured to be paid out in 12 tranches, each of which allows Musk, 50, to buy 8.4million Tesla shares for $70 each, a massive discount to its current stock price of around $1040. Musk has so far received eight of these tranches.