By Aaron Miller-
Elon Musk is poised to collect a $23billion bonus after electric car company Tesla reported its record quarterly profits. The Tesla boss is currently trying to take control of the social media giant, with a colossal bid of $46.5bn (£35.6bn).
Musk, the world’s richest person and chief executive of the American company, who already has an estimated $249billion to his name, is now set to receive a bonus share payout after Tesla posted a $3.3 billion quarterly profit on Wednesday.
The news, in addition to projections of another strong year of production growth in 2022, saw Tesla stock rise 3.2 % despite lingering supply chain woes.
Musk recently became the largest shareholder in the company, taking a 9.2 percent stake.
The billionaire is now planning to strengthen his grip and plans to make huge changes if he succeeds.
In a tweet this week, the 50-year-old said: “If our twitter bid succeeds, we will defeat the spam bots or die trying!
“And authenticate all real humans.”
It’s not the first change the billionaire has proposed, though.
He recently spoke to TED founder Chris Anderson about his desire to buy Twitter and what he would like to do with it.
Anderson opened up the discussion, asking: “So Elon, a few hours ago you made an offer to buy Twitter, why?”
To which Musk responded, “How did you know?” referencing the fact that he had tweeted about his offer and illustrating why the social media site would be a good investment.
Elaborating further, Musk went on: “I think it’s very important that there will be an inclusive arena for free speech.”
“Twitter has become kind of the de facto town square. It’s really important that people have the reality and the perception that they’re able to speak freely, within the bounds of the law.”
The company plans to fight back. To halt a takeover, Twitter’s board plans to activate a ‘poison pill’ if Musk comes to own more than 15 percent of the company.
Tesla’s figures were boosted by the delivery of a record 310,000 cars in the first quarter as the firm shrugged off challenges in its supply chain including Covid-19 outbreaks and computer chip shortages.
The figures put him in line for the next three tranches of a bumper share award agreed in 2018 if he managed to increase its market value to $650billion within ten years.
The bonus is structured to be paid out in 12 tranches, each of which allows Musk, 50, to buy 8.4million Tesla shares for $70 each, a massive discount to its current stock price of around $1040. Musk has so far received eight of these tranches.
Tesla has also raised its prices in China, the United States and other countries, after Musk said in March the U.S. electric carmaker was facing significant inflationary pressure in raw materials and logistics amid the crisis in Ukraine.
‘Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through the rest of 2022,’ Tesla said in a statement.
Tesla shares have risen nearly 1,800 per cent in the past three years, from just over $50 to around $980. That values the company at over $1trillion – making it worth more than the next 12 largest carmakers combined.