Elon Musk earns £625 million payday after Tesla hits targets

Tesla chief executive Elon Musk has seen his wealth boosted by £625 million after his company hit a number of performance targets.

The electric car maker passed the milestones of a total market value of 100 billion dollars (£81 billion) and making 20 billion (£16 billion) in revenue for four quarters triggering the compensation package.

A filing with the US Securities and Exchange Commission said Mr Musk can buy 1.69 million shares of Tesla for 350.02 dollars (£284.03), compared to its most recent closing price of 805.81 dollars (£653.93).

It was not clear if Mr Musk, whose wealth is estimated at 39 billion dollars (£31.7 billion) by Forbes magazine, exercised the options.

The payout is part of a generous package approved by the company’s board in 2018, one of the largest in US history.

In total, Mr Musk could be eligible for 20.3 million stock options in 12 bundles if the California-based company is able to reach progressively difficult financial goals.

In order for Mr Musk to receive all 20.3 million options, Tesla will have to generate adjusted annual earnings of 14 billion dollars (£11.4 billion) on annual revenue of 175 billion (£142 billion) coupled with a market value of 650 billion (£525 billion).

In the past four quarters, Tesla, has reported adjusted earnings totalling 3.6 billion dollars (£2.9 billion) on revenue totalling 26 billion (£21 billion).