Elon Musk is ready to take on a bonus worth more than $ 23 billion (£ 17.6 billion) after Tesla made a huge jump in sales and profits, shattering Wall Street’s expectations despite supply chain problems.
The richest man in the world, who does not receive a salary from the electric car manufacturer, is in line for stock rewards as part of his extremely lucrative compensation package.
This comes after the company said revenue jumped from $ 10.4 billion to $ 18.8 billion in the first quarter. Analysts expected sales of $ 17.8 billion.
Profits for the company that makes the best-selling cars in the UK, Model 3 and Model Y, rose to $ 3.3 billion from just $ 438 million a year ago.
The presentation means that Mr. Musk will receive three awards for performance-related shares, worth about $ 7.7 billion each, which were listed in his 2018 payment deal.
The award will allow the billionaire entrepreneur to buy millions of shares of Tesla at a huge discount, although this is subject to approval by the board of the company based in Texas.
If he succeeds, it will add to Musk’s estimated personal fortune of $ 263 billion, according to Forbes, most of which is related to his involvement with Tesla.
This happened after Tesla delivered a record 310,048 cars in the first three months of 2022, compared to 184,800 in 2021.
This was despite the global shortage of microchips, which has significantly hampered many car manufacturers, as well as rising material costs associated with Russia’s invasion of Ukraine.
The company said it was “focused on growth as fast as reasonably possible”, but that supply chain problems “remained constant”, adding that they had forced it to raise prices.
Shares jumped more than 3% higher in trading after business hours after the announcement.
Meanwhile, Tesla opened factories in Texas and Berlin and increased production. Mr Musk personally delivered the first Tesla Model Y cars made in Texas earlier this month, while deliveries in Berlin began in March.
The so-called gigafactories are part of his company’s plan to reduce vehicle production costs by building them closer to customers in major markets.
However, Tesla was forced to suspend production at its Shanghai plant at the end of the first quarter due to a local Covid outbreak. He has since resumed production, reportedly asking some employees to sleep there.
The results followed Mr Musk’s $ 43 billion offer to take over Twitter, a social network he has used for years to attract publicity for himself and Tesla.
On Saturday, Twitter released the so-called “poison pill” tactic in an attempt to thwart any offer. In a tweet, the billionaire continued to hint at the possibility that he could make a hostile offer with a “tender” offer to all shareholders.
His post included a series of dashes – missing words – followed by the phrase “it’s night”. This happened after he separately tweeted “Love Me Tender”, a song by Elvis Presley.
The move by Twitter, designed to prevent each shareholder from accumulating more than 15 percent in the media company, will allow the board to flood the stock market to blur predators’ shares.
Mr Musk said he had a 9.1 per cent stake earlier this month, making him the biggest investor on Twitter.
He was set to join the company’s board before it was suddenly announced that he would no longer do so and offered to take over Twitter.
Mr Musk was said this week to be willing to invest between $ 10 billion and $ 15 billion of his own money in the deal.
He also hired Wall Street banking giant Morgan Stanley to raise another $ 10 billion in debt and will hold an auction within days, according to the New York Post.
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