Elon Musk poised to collect $23bn bonus as Tesla beats targets

Elon Musk, chief executive of Tesla and the world’s richest person, is set to collect a $23bn (£17.6bn) bonus after the electric car company’s reported record quarterly profits.

Musk, who is already sitting on an estimated $249bn fortune, is in line for the bonus share payout after Tesla hit share price and financial growth milestones in its earnings on Wednesday night.

Tesla made an adjusted profit of $5bn on revenue of $18.8bn in the first quarter of the year, an 81% increase on the same period a year earlier. The results, combined with the growth in Tesla’s share price performance, mean Musk has hit targets that should lead to a bonus share payout worth about $23bn.

The company outlined an extraordinary deal for Musk in 2018 that would pay him an unprecedented record $55.8bn (£40bn) bonus if he built the business into a $650bn company within a decade.

He achieved that milestone early, in January 2020. Tesla today has a market value of $1.1tn, after a 1,600% rise in its share price since the target was set in January 2018. The shares jumped 11% in early trading on Thursday to $10.60.