The richest man in the world, Elon Musk, is set to take home a mammoth bonus of AU$31 billion (US$23 billion) after Tesla reported record quarterly profits.
Musk doesn’t earn a salary in his role as CEO of the electric car manufacturer, however, he will receive three tranches of shares based on a 2018 compensation agreement with the company.
The deal outlined that Musk would be in line for a record AU$75 billion (US$55.8 billion) bonus if he were to build the business into an AU$880 billion (US$650 billion) business within the decade.
He achieved that estimation well before the deadline back in January 2020.
Today Tesla’s market value sits at around AU$1.5 trillion (US$1.1 trillion).
Tesla’s first quarter revenue:— Jon Erlichman (@JonErlichman) April 20, 2022
2022: $18.8 billion
2021: $10.4 billion
2020: $5.9 billion
2019: $4.5 billion
2018: $3.4 billion
2017: $2.7 billion
2016: $1.3 billion
2015: $939.9 million
2014: $620.5 million
2013: $561.8 million
2012: $30.2 million
2011: $49.0 million
The company recorded its highest-ever profits this quarter, with revenue reported at AU$25.46 billion (US$18.76 billion) and adjusted earnings of AU$6.8 billion (US$5 billion).
It means Musk can now unlock the final three parts of his 12-tranche bonus scheme, with each tranche giving Musk the right to buy 8.4 million Tesla shares at AU$95 (US$70) each.
A huge discount to today’s share price that sees it sit at AU$1,368 (US$1,008), netting him a combined profit value of the ridiculous AU$31 billion (US$23 billion).
He can’t just run off with the profits however, as the board requires him to hold on to the shares for at least five years.
It doesn’t seem likely he’ll be leaving his founded company any time soon.
In the company’s earnings call with investors, he said: “The future is very exciting. I’ve never been more optimistic or excited about the future of Tesla than I am right now.”
Despite completing the initial bonus scheme, Musk claims there are no new deals on their way, saying: “There are no discussions underway about incremental compensation for me.”
The news comes after Musk looked to acquire his next business - social media juggernaut Twitter.
Musk recently became the social media firm's largest single stakeholder with a 9.2 per cent stake.
However, since making his investment Musk came to the conclusion that he must instead buy the whole company in order to see real change - putting in a whopping AU$58 billion (US$43 billion) bid.
Explaining why he wants to buy the company in a letter to Twitter chairman Bret Taylor, the Tesla and SpaceX chief said: "Since making my investment I now realise the company will neither thrive nor serve this societal imperative in its current form.
“Twitter needs to be transformed as a private company.”
This latest bonus from Tesla will certainly help in financing the deal.
The world’s richest man just got richer.
Featured Image Credit: APFootage / Alamy. Russell Hart / Alamy.