Elon Musk gets $4.3 million in stock pay for Model X work

Article by Anita Panait, on August 12, 2013

Tesla Motors Inc. co-founder and chief executive Elon Musk received $4.3 million in stock-based pay in the second quarter of 2013 for his work on the Model X sports. Musk’ s pay accounted for over 20 percent of the $19.3 million in stock-based compensation Tesla reported in the second quarter. The stock pay was one of three adjustments of over $16 million that the carmaker used to justify a $30.5-million net loss should be considered as a $26.3 million profit.

On the adjusted basis, Tesla posted a second-quarter profit of 20 cents a share, or 5 cents, excluding an adjustment for lease accounting. This surpassed the 20-cents-per-share loss average estimate of 10 analyst surveyed by Bloomberg, and was a primary factor in Thursday’s 14-percent surge of Tesla’s stock. Tesla reported its financial results for the second quarter of 2013 after the market closed on Wednesday.

Kevin Tynan, a Bloomberg Industries auto analyst, remarked that Tesla "is acting a lot more like a technology company than an automaker at this point." Excluding stock-based compensation from net income is more typical in technology companies in the Silicon Valley than in the global auto industry.

Tynan remarked that granting the stock options for development work that has yet to be completed does not pose a problem since that is not uncommon, especially if the person concerned is on target. Tesla reposted its first net profit in the first quarter of 2013 and Consumer Reports magazine has hailed its Model S electric sedan as one of the best cars ever made.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
Even when Aston Martin has been mum about the upcoming AM-RB 001 hypercar, Marek Reichman at least has something new to say. In a recent interview with Australia’s Motoring, the...
by - December 8, 2016
The people at Mercedes-Benz are rejoicing. This is simply because for the first time since 1979, Mercedes-Benz has assembled 20,000 – and still counting – examples of the Mercedes-Benz G-Class....
by - December 8, 2016
When Donkervoort Automobielen BV unveiled its Donkervoort D8 GTO-RS limited edition in May 2016, customer interest has been so overwhelming that the Lelystad, Netherlands-based carmaker sold out this one-of-a-kind vehicle...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries