Elon Musk Beats Tesla’s Compensation Targets Worth $23 Billion

With Tesla’s strong quarterly earnings reported on Wednesday, Elon Musk scored a triplet of performance goals worth a combined $23 billion in new compensation.

The world’s most valuable car maker reported revenue and profit in the March quarter that beat Wall Street estimates as it raised prices in response to inflation, offsetting the impact of a factory closure in Shanghai.

Musk’s latest compensation windfall, which must be certified by Tesla’s board, comes days after he offered to buy Twitter for $43 billion, with analysts suggesting he could sell shares. from Tesla to help finance the deal.
Musk is already the richest person in the world, according to Forbes.

Tesla reported quarterly revenue of $18.76 billion and a so-called adjusted earnings before interest, taxes, depreciation and amortization (Ebita) of $5.02 billion. billion).

Combined with results from the previous three quarters, this surpasses milestones triggering the acquisition of the ninth to 11th of the 12 option tranches awarded to Musk in his 2018 compensation package.

Musk said Wednesday that there are no ongoing discussions about incremental compensation.
Musk, who is also a major shareholder and CEO of SpaceX, does not receive a salary from Tesla. Its pay package requires Tesla’s market capitalization and financial growth to meet a series of escalating targets.

Each tranche gives Musk the option to buy 8.4 million Tesla shares at $70.01 each, a discount of about 90% from Wednesday’s closing price of $977.20. At the current share price, the three tranches of options that will be acquired as a result of Tesla’s performance in the March quarter could generate a profit of about $23 billion, or nearly $7, 7 billion per tranche.

At the end of last year, Musk made $16.4 billion from selling about 10% of his stake in Tesla to meet withholding tax obligations related to exercising stock options.