LOS ANGELES (Bloomberg) -- Elon Musk, the billionaire co-founder of Tesla Motors Inc., received $4.3 million in stock-based pay in the second quarter for work on the company's Model X SUV that Tesla directors determined will be completed later.
CEO Musk's earnings made up more than 20 percent of the $19.3 million in stock-based compensation the company reported in the second quarter.
The stock pay, which doesn't vest unless the work gets done, was one of three adjustments of more than $16 million that Tesla used to explain why its $30.5 million net loss should be seen as a $26.3 million profit.
On the adjusted basis, Tesla's second-quarter profit was 20 cents a share, or 5 cents, excluding an adjustment for lease accounting.
That exceeded the average of 10 analyst estimates for a 20-cent loss, sending the company's shares up 14 percent on Thursday. Tesla reported second-quarter financial results after the market closed on Wednesday.
Excluding the stock-based compensation from net income is more common in Silicon Valley than in the global auto industry.
Tesla "is acting a lot more like a technology company than an automaker at this point," said Kevin Tynan, a Bloomberg Industries auto analyst in Skillman, N.J.
Granting the stock options for development work that hasn't yet been completed isn't a problem, he said.
"I wouldn't think that is all that uncommon, especially if you're on target," Tynan said.
Tesla shares have quadrupled this year, as the 10-year-old company reported its first net income in the first quarter and its electric-powered Model S sedan was praised by Consumer Reports magazine as one of the best cars ever made.
The stock compensation was disclosed Friday in a regulatory filing by the Palo Alto, Calif.-based electric-car manufacturer.
Shanna Hendriks, a Tesla spokeswoman, didn't respond to several e-mails and phone calls about the filing.
Musk's stock compensation during the quarter was for completion of vehicle and engineering prototypes for the Model X and the completion of the first Model X production vehicle.
The milestones were "considered probable of being met" as of June 30, according to the filing.
Sales of the Model X aren't slated to begin until late next year.
During a conference call Wednesday to discuss the second-quarter results, Musk said development of the vehicle is "swiftly rising" among the company's priorities.
Musk's stock-based compensation comes from a 2012 CEO Grant fund set up by the company in August 2012, the filing said.
The fund contains 5.3 million stock options and is released in 10 vesting portions when pre-determined performance targets are "probable of being met, regardless as to whether the related market condition is ever met."
The filing adds: "the market condition would also be required in order for the related options to ultimately vest."
Other expenses the company excluded from its adjusted profit figure were $16 million for early repayment of a U.S. Energy Department loan and $19.3 million related to the start of its leasing program.
Musk accepts only $1 in annual salary from the company, according to Tesla's most recent proxy filing.
The CEO's fortune jumped $570 million on Thursday after shares of Tesla jumped.
Musk has a net worth of $7.7 billion, according to the Bloomberg Billionaires Index, up more than 220 percent year-to-date. He's the world's 162nd-richest person.
Tesla shares slipped 0.31 percent, or 48 cents, to close at $153.00 in Nasdaq trading Friday.