Business & Investment

Elon Musk, the wealthiest man in the world, gets richer with a £ 197 million bonus

Elon Musk, the wealthiest man in the world, gets richer with a £ 197 million bonus that burns one-third of Tesla’s annual profits

Tesla’s boss, Elon Musk, has earned a bonus of around £ 200m, which is one-third of the total annual profits of electric car makers.

Helping to solidify Mask’s position as the wealthiest man in the world, the award is part of his £ 40bn bonus plan to distribute shares when the company achieves certain goals. did.

This includes an increase in Tesla’s market capitalization, which has surged nearly 700% over the past year as investors have piled up in stock.

Payday: The wealthiest man in the world, Tesla’s boss Elon Musk (estimated £ 151 billion) has been awarded a £ 200m bonus

However, in the latest series of results, the company admits that mask payments and other costs are digging into profit margins, partly due to the missed Wall Street forecasts.

The 49-year-old £ 197m bonus was first reported, representing 37% of his company’s full-year profits in 2020.

Tesla earned £ 528m, a significant increase from the £ 431m loss in 2019, well below the £ 910m predicted by Wall Street analysts.

Tesla explained in the fourth quarter that this number was reduced by “stock-based compensation costs resulting from the 2018 CEO Award.”

Tesla in numbers

  • £ 151 billion Mask wealth
  • £ 197m Last year’s bonus
  • £ 528m Tesla’s profits in 2020
  • £ 600bn Tesla market value
  • 660% Increased share over the past year

In addition to the fall in the company’s car prices, the company added that this effectively wiped out the financial boost from selling more cars and receiving green tax credits.

Tesla’s board of directors awarded Musk a favorable bonus plan in 2018. When Tesla achieves a particular goal, a tranche of shares is paid to the millionaire.

In the past year alone, the value of the company has jumped from £ 75bn to £ 600bn. This is all except the one that guarantees payment from the scheme.

Hargreaves Landsdown analyst Nicholas Highett said profit numbers were “somewhat lower” than Wall Street wanted.

He states: “Intensifying competition means that Tesla will have to work harder in the future.”

Musk overtook Amazon boss Jeff Bezos to become the wealthiest person in the world earlier this month.

According to the Bloomberg Millionaires Index, his value is around £ 151 billion, up from just £ 25 billion a year ago.

The tremendous rise in fortune was caused by the rise in Tesla’s stock price. Musk’s wealth was drawn primarily from his 18% stake.

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Elon Musk, the wealthiest man in the world, gets richer with a £ 197 million bonus

https://www.dailymail.co.uk/money/markets/article-9198407/Elon-Musks-200m-bonus-burns-Teslas-annual-profit.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Elon Musk, the wealthiest man in the world, gets richer with a £ 197 million bonus

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