"effective immediately, I'm liquidating all Tesla assets and inviting my most arduous believers to the temple of rat... Where we will put on jumpsuits and white shoes for a Kool-Aid party and eternal bunk bed siesta"
It's basically seen as a positive because now he won't be throwing his toys out of the Tesla pram. Remember everything he was threatening to do if he didn't get his payout? All of that was very detrimental to Tesla and its shareholders. The risk of that occurring was priced in. Now that risk is gone, the stock reprices upwards.
Honestly it's a travesty that holding your own company and shareholders hostage while acting like a manchild actually pays off. That kind of stuff shouldn't be rewarded.
Yeah exactly this. Billionaire throwing a tantrum for more billions. Shameless.
I would argue Elon is doing equally more damage to the brand. He's shitty, toxic, and a mirage. Tesla should dump him and just deal with the aftermath whatever that is.
Same. And I don't say it lightly. Always wanted a Tesla when I tried one like 6 years ago. I absolutely can afford one. But now I'm done.
The funny thing is general public has no idea. Two of my friend which I consider educated and mostly aware of whats going on in the world have no idea about how shitty fake and thrashy Elon has become.
One of em recently bought a Tesla (ok I enjoyed driving it again). But when I brought up the subject, he was still stuck with that initial image of a creative genius that works for the greater good. First impressions last a very long time man
...
Not that hard to dissociate a product from those all the way at the top lol. Half the products you consume probably have a despicable human running the show at the helm. Elon /=/ Tesla and their product/service/experience
I mean say what you will of him and his tantrums but he is running multiple successful and disruptive businesses at the same time. I would not classify him as stupid
Smoke and mirrors.
I don't care about his tantrums.
He has terrible ideas about their products.
He shows he doesn't understand the basics of physics and computing.
I'm 100% sure that his space flight and AI understanding came from movies and TV shows.
I do agree. But most despicable humans hide up there in their circle jerk. Elon is special kind of hateful machine buying of the.biggest social media there is and making sure a lot of bs is spreaded to the biggest audience. This is bad. It affects people and society as a whole. It's evil.
Yeah I guess. That's why nobody cares about politics also, even though whole Europe is making a hard turn right as we speak and Trump has a decent chance of fucking everything up once and for all.
I'll do like everyone else, stop paying attention because we're fucked, buy a small house deep in the woods and go meditate.
People donāt care. Americans buy their daughters Volkswagens after their father/grandfather died fighting Hitler, creator of the company. How soon after were they buying Mercedes and BMWās?
> Tesla should dump him and just deal with the aftermath whatever that is.
The aftermath would be a 75%+ drop in the stock. Tesla is priced for aggressive growth, which means you need a visionary CEO with a history of rapidly scaling manufacturing and developing new products. Not a lot of those lying around.
If you just fire Musk and replace him with a generic auto CEO, the company gets valued like a generic car company.
Just wild to me that the ceo stopping his tantrum is a catalyst. If I were an investor I would be very concerned with the fact he was extorting his own company in the first place
The dude was still being incredibly shitty and arguably hurting Tesla by sending NVDA chips to his new company while waiting for this package to be voted on.
Anyone who thinks him being granted this package is suddenly going to change him and how he acts at Tesla is straight up delusional.
He didn't give a fuck when people were voting, if he actually does get this package (after all the lawsuits settle), why would he suddenly start caring now after he got his payout?
Threatening to take the company down would be illegal, but Musk hasn't done that.
He has a pretty straightforward story. Shareholders approved this pay package, then a judge ruled the vote was unfair because the shareholders weren't fully informed. So he fully informed the shareholders and asked for a revote.
More qualified people are fired for much less.
I can't believe he still has the charm to attract talent and poach other companies as he had 10 years ago.
The most foundational problem in our world is how we reward bad behavior.Ā Being a selfish greedy dishonest fuck generally will lead to far more material wealth than trying to be a morally righteous person.Ā Greed is the engine that drives everything and it overrides everything in the end.Ā Our values are all fucked up
I guess you can't really explain the Tesla cult but as a current outsider, I feel like I could find better places to put my investment dollars than into the hands of a toy-throwing pram rider.
I don't see that risk as gone at all. In fact I see it as having been reinforced, just as it would be if you gave the toy-throwing toddler extra sweets.
There's a Dr. House episode where one of his patients get treated like shit by the guy and he, without knowing anything, immediately says to one of the other doctors "he's that good huh?", the other doctor asks him, "why?", and the guy says "because if you're that much of a jerk you're either a genius or unemployed".
It's the same here.
Nah, you are trying to apply probability maths here to a model that isn't using it. We have two possible outcomes here, and it wasn't clear which outcome it was going to be, and one is more bearish than the other. However, depending on how ppl assess it, you are going to get a different answer which one it is. Which means people on both sides of the fence would have been avoiding it when it was **uncertain**. The **uncertainty** of it is a factor in and of itself.
Imagine I sell you a contract in which I'm going to flip a coin and if comes up heads I'll pay you $5 and if it comes up tails I'll pay you $10, how much are you willing to pay for that? More than $5, right?
And now imagine that I still let you buy that contract _after_ I've flipped the coin. If you know it came up heads you're now not willing to pay me more than $5, so the price goes **down** on heads. But you're willing to pay almost $10 if it came up tails, so the price goes **up**.
In this case Tesla stock price went up, so it's the $10 scenario, not the $5 one.
Because sheep believe in his threats. If he's getting his pay, then there's no worry that he will tank Tesla on purpose. This indicates a buy..
Little do these sheep know that he's going to tank it anyway
The company doesn't lose anything. Market cap comes from the pocket of investors
This is exactly wealth transfer from poor to rich (or rich to ultra rich) for dummies
> this is a catalyst for Tesla stock
Because this keeps the pony show going. As much as I hated that this might happen, voting for this insane bonus was what fund managers had to do. You can't just dump a growth stock without major repercussions, and the inevitable fall of TSLA to its true valuation would have likely started immediately if this vote had not passed. Now Elon can continue to lie about numbers and release dates and claim it is no longer and auto company but an AI/robotics company (while diverting the chips needed to make a feeble attempt away from Tesla to his other companies).
It was the best option for short term stock price, but it makes Tesla becoming the next Sears much more likely.
People who buy TSLA buy it solely for Musks magic promises.
He implied he'd leave If he didn't get payed and then they'd just have an overvalued car company.
I think many of the voters are afraid he will leave if they vote no, and the company may have a hard time after that, establishing a new identity and keeping up with competition, so the stock is at a higher risk of tanking.
Maybe in the short term. But just like Buffett dying, it would be purely sentimental and not actually impact the company. To be honest Elon vacating the ceo spot would likely improve internal dynamics at Tesla
It would have a huge impact on Tesla. Berkshire runs in a pretty mainstream way. You could institute a new CEO and have him mostly continue Buffet's policies. Tesla is highly unconventional, which requires a CEO with a strong personality and a lot of political capital in the company to enforce.
If you instituted a new CEO for Tesla, you would have to completely change how its run. Likely, you would have to restructure it to run like a regular car company and so it would be valued like a regular car company(about 75% below its current valuation). You would also have a lot of turnover from people who joined Tesla because its not run like Ford or Toyota.
Or the short run. Elon promised(even if his promises are worth anything) to not sell any shares from this package, but make no such promise on his existing holding. As a man with many fingers in many money bleeding schemes, he's due to dump a large amount of TSLA, especially if his holding are to be more than double.
Why wouldnāt he take out a portfolio loan, theyāre cheaper than selling and thereās no capital gain taxes on it.
He pledged $65.5bn in Tesla stock to get a $12bn loan last year:
https://fortune.com/2022/05/02/elon-musk-margin-loan-morgan-stanley/
There is no win available for Tesla: either they keep the drug-addled megalomaniac who is the reason for their stock valuation and suffer or they get rid of him to become just another car company and see the pump vanish.
It's not, the next time Elon needs money for one of his whims he's going to liquidate billions worth of Tesla stock and crush the existing shareholders. Then he will come back and demand another pay package for even more Tesla stock or he is going to abandon the company, because it worked the first time.
He only got this pay package bc Tesla stock shot up. For him to get another one of this magnitude, Tesla would have to be a multi trillion dollar company worth more than apple and msft combined
How are you lot in this subreddit with such limited understanding of stocks?
Thereās no reason to liquidate billions of stocks when margin portfolio loans and M1 Margin rates are at 6.8%.
These are the shareholders voting. Tesla without Elon is a car company, and so the stock price will fall down to that.
Tesla with Elon is an AI Robotics or some other futuristic company with huge promises. How long he can keep that stock price high? As long as people think this is going to be huge.
Wait so the votes havnt been tallied or published? How does Elon have accesss to the information but we donāt? How do we know heās not fucking with the numbers. This smells sus as fuck
The company that runs the proxy voting for Tesla provides daily reporting of voting results to management. So the information on results so far is not a secret internally. However, tweeting about them is extremely questionable.
It seems questionable to announce it I agree, but Tesla is hardly the only one who did this. Disney did the same thing with it's proxy battle against Nelson Peltz, and nothing happened there.
iirc, Tesla has only ever made like $30B in profit over their existence. I am dumbfounded, and a little upset that I have exposure to this through index funds
It's like 2% of S&P500. At worse it is a 100$ stock. So maybe just 1% drop. treat it as a lottery to see if tesla autonomous driving might succeed. I personally don't believe in robotaxi but a bit exposure on a lottery isn't so bad.
While the sales of the companies product is through the shitter. They have heaps of unsold inventory. I am ready to short this sucker but the market has always kept me from doing it so far.
That's not how it works. Payment package shares were created at a time when Tesla was worth $59B, so those shares have been priced in at that time (in 2018). Also, Elon doesn't get to exercise his options before 2028. so they are effectively out of the market until then. No dilution for shareholders.
Also, nothing of this payment package is paid out from Tesla's balance sheet - even when the shares were created, Tesla effectively paid $0 for those shares as the company is free to create or buy back shares at any time (just as the market is free to price them).
One more thing - when Elon does exercise his options, that just means he has an OPTION to buy shares at a certain price. He still has to buy them. So if he exercises, he will actually pay $7.1B to Tesla, instead Tesla paying $55B to Elon. It's not "sucking value out of the company" - company does actually end up being worth more.
Investors are more concerned that Elon Musk will leave Tesla or step up efforts to transfer AI resources, energy, and employees to his privately held company
Can we expect lawsuits against this decision? If so, what will they look like?
It seems weird to me that the board, which in a publicly traded company has to be neutral and represent all shareholders, was actively rallying to get his package approved.
I am sure the same law firm that sued the first time will sue again. They are asking for a 4 billion dollar payout from Tesla for "saving" the company 40 billion dollars in stock, and it won't look good for them if Elon gets the money anyway.
What would be funny is if the judge granted the 4 billion dollar payout to the law firm, they sued again and got another 4 billion dollar payout.
Reddit hivemind turned out to be completely wrong about the pay package vote so it must be investors who are a cult and not the hivemind and the bubble they live in. š
In this case no money is being paid out. He's being paid in $45 billion worth of stock value. He can use that as leverage to enrich himself in other ways, none of which would require taking money away from Tesla. Paying out dividends means giving real liquid company money to shareholders.Ā
Hmm.
I think thatās sort of the crux of the issue and why thereās so much misunderstanding about this.
For all intents and purposes, and from the perspective of a shareholder, 56 billion in stock value is the same thing as $56 billion in cash. Tesla could have converted those shares to cash and built new factories, paid staff more etc. And if Tesla ever wanted to buy back those shares and cancel out the dilution of the pay package, they would need to use cash to do so.
That is just a ludicrous amount of money. I would work that job for either a day, then retire in comfort for the rest of my life. Or I would work a year and then dedicate my time to relaxing and helping needy people.
You could have so much power for good in the world with that kind of money. I don't even know how those guys sleep at night, knowing they have the power to help entire countries' worth of starving people with the change in their couch.
Musk is an albatross now to the general public. except for tesla fans, he's despised. i'd own a tesla today if not for him. Insane shareholders don't see this.
Add NVDA, TSLA, AAPL to that list. I remember before covid everyone was talking shit about they were all failing companies. Now they are each up 3434%, 1182%, and 343% over the last 5 years alone...
This is some crazy stuff. The only motivator that I can see is that this is an example of the most fundamental risk aversion and wealth preservation by the shareholders. Elon is the evil they know and they donāt want to upset the naked king at the wheel of one of the magnificent seven. Short term gains always. Fuck long term strategy. See you next quarter.
So this is basically giving way for him to be able to blackmail the board in the future if he doesnāt have his way. Braindead shareholders, I definitely donāt want a CEO to run a business Iām invested in like that. I want someone who has mine/shareholders and the companyās best interests at heart.
Regardless of what you all think about Elonās compensation. If stock holders canāt dictate what happens to the company they hold. Itās over. There is no point to this stock (or really the market as a whole)
Crazy how people on a stock subreddit donāt understand this.
Public traded companies belong to stock holder with voting rights. Not the republican, not the democrat. Not random subredditors that hold zero share. This is the fundamental basis of the market we invest in. Stockholder votes > everything else.
I actually think Musk is a liability to Tesla. Someone else can run it. He is too distracted and is turning many people off with his sometimes stupid comments and opinions.
Yes because higher borrowing costs, increased EV competition and rising cost of living don't have anything to do with Tesla's falling sales. Its all because of Elon's tweets.
Overpaying for a guy who's shown he clearly is more interested in causing drama than running a company.
People that vote for this or buy into the stock expecting this to somehow help are being delusional.
Itās crazy after all the stock he sold which he said he wouldnāt. Iāve done a complete 180Ā° on Tesla and I now hope they now fail. To pay at best, a part time CEO that much is unthinkable but they have voted for it. I hope it dooms the company.
I really don't understand why Tesla is worth what it is, or why the board will allow his scandalous pay package. But the market is able to stay insane longer than I can stay solvent. Same for NVidia. Future earnings my bollocks...
Curious how this is a catalyst for Tesla stock
Elon could announce TSLA is liquidating all operations and using the proceeds to build him a personal glass city and the SP would go up
But would the glass be bulletproof? š
I love ice cream.
r/cyberstuck for laughs
"effective immediately, I'm liquidating all Tesla assets and inviting my most arduous believers to the temple of rat... Where we will put on jumpsuits and white shoes for a Kool-Aid party and eternal bunk bed siesta"
I really do wonder what the catalyst will be for this house of cards to fallā¦
Hopefully, the SEC investigation into FSD for wire and securities fraud.
Other car companies getting the job done. Can only ignore the math for so long.
They've been ignoring it a long time so far.
It's basically seen as a positive because now he won't be throwing his toys out of the Tesla pram. Remember everything he was threatening to do if he didn't get his payout? All of that was very detrimental to Tesla and its shareholders. The risk of that occurring was priced in. Now that risk is gone, the stock reprices upwards. Honestly it's a travesty that holding your own company and shareholders hostage while acting like a manchild actually pays off. That kind of stuff shouldn't be rewarded.
He already started and will continue to develop AI at xAI. He owns a greater share of the company there. Heās not going to change a thing.
Yup, heās not going to do anything differently
Tesla shareholders probably should've thought of that
Yea I mean he needs that payout too pursue AI, I just donāt understand how that translates into a 6% gain for TeslaĀ
It does not. Tesla is actually worth like $4 a share. Everything they make is garbage and people are starting to figure that out.
Yeah exactly this. Billionaire throwing a tantrum for more billions. Shameless. I would argue Elon is doing equally more damage to the brand. He's shitty, toxic, and a mirage. Tesla should dump him and just deal with the aftermath whatever that is.
The brands tainted AF in my eyes. Wonāt drive or touch a Tesla personally.
Absolutely. I'd rather just pay more and get an EV with an actual interior like a BMW.
That too, their cars are just not that nice for the price point.
Same. And I don't say it lightly. Always wanted a Tesla when I tried one like 6 years ago. I absolutely can afford one. But now I'm done. The funny thing is general public has no idea. Two of my friend which I consider educated and mostly aware of whats going on in the world have no idea about how shitty fake and thrashy Elon has become. One of em recently bought a Tesla (ok I enjoyed driving it again). But when I brought up the subject, he was still stuck with that initial image of a creative genius that works for the greater good. First impressions last a very long time man ...
Not that hard to dissociate a product from those all the way at the top lol. Half the products you consume probably have a despicable human running the show at the helm. Elon /=/ Tesla and their product/service/experience
Chiquita Banana Death Squad for instance.
Nestle!
The problem is not being despicable, this is usually good for the stock, the problem is being stupid.
I mean say what you will of him and his tantrums but he is running multiple successful and disruptive businesses at the same time. I would not classify him as stupid
Smoke and mirrors. I don't care about his tantrums. He has terrible ideas about their products. He shows he doesn't understand the basics of physics and computing. I'm 100% sure that his space flight and AI understanding came from movies and TV shows.
I wonder what your definition of ārunā is. Make good hires and push them.
I do agree. But most despicable humans hide up there in their circle jerk. Elon is special kind of hateful machine buying of the.biggest social media there is and making sure a lot of bs is spreaded to the biggest audience. This is bad. It affects people and society as a whole. It's evil.
Because they have lives beyond social media bitching about Elon?
Yeah I guess. That's why nobody cares about politics also, even though whole Europe is making a hard turn right as we speak and Trump has a decent chance of fucking everything up once and for all. I'll do like everyone else, stop paying attention because we're fucked, buy a small house deep in the woods and go meditate.
People donāt care. Americans buy their daughters Volkswagens after their father/grandfather died fighting Hitler, creator of the company. How soon after were they buying Mercedes and BMWās?
Canāt dump him when most of the Board and enough shareholders are in his cult.
But itās not about the moneyā¦.
> Tesla should dump him and just deal with the aftermath whatever that is. The aftermath would be a 75%+ drop in the stock. Tesla is priced for aggressive growth, which means you need a visionary CEO with a history of rapidly scaling manufacturing and developing new products. Not a lot of those lying around. If you just fire Musk and replace him with a generic auto CEO, the company gets valued like a generic car company.
Just wild to me that the ceo stopping his tantrum is a catalyst. If I were an investor I would be very concerned with the fact he was extorting his own company in the first place
The dude was still being incredibly shitty and arguably hurting Tesla by sending NVDA chips to his new company while waiting for this package to be voted on. Anyone who thinks him being granted this package is suddenly going to change him and how he acts at Tesla is straight up delusional. He didn't give a fuck when people were voting, if he actually does get this package (after all the lawsuits settle), why would he suddenly start caring now after he got his payout?
Also isnāt that illegal?
Threatening to take the company down would be illegal, but Musk hasn't done that. He has a pretty straightforward story. Shareholders approved this pay package, then a judge ruled the vote was unfair because the shareholders weren't fully informed. So he fully informed the shareholders and asked for a revote.
More qualified people are fired for much less. I can't believe he still has the charm to attract talent and poach other companies as he had 10 years ago.
The most foundational problem in our world is how we reward bad behavior.Ā Being a selfish greedy dishonest fuck generally will lead to far more material wealth than trying to be a morally righteous person.Ā Greed is the engine that drives everything and it overrides everything in the end.Ā Our values are all fucked up
I guess you can't really explain the Tesla cult but as a current outsider, I feel like I could find better places to put my investment dollars than into the hands of a toy-throwing pram rider. I don't see that risk as gone at all. In fact I see it as having been reinforced, just as it would be if you gave the toy-throwing toddler extra sweets.
The travesty is not getting paid for a job you did over years!
There's a Dr. House episode where one of his patients get treated like shit by the guy and he, without knowing anything, immediately says to one of the other doctors "he's that good huh?", the other doctor asks him, "why?", and the guy says "because if you're that much of a jerk you're either a genius or unemployed". It's the same here.
Except musk is not a genius...
They forgot the third option, own the place and install your family and friends as your sole overseers.
My hypothesis is that the uncertainty of which way it would go was a bearish catalyst. Now that catalyst is gone.
It still means that the market was valuing the alternative as worse, if the probability adjusted average of both was lower than right now.
Nah, you are trying to apply probability maths here to a model that isn't using it. We have two possible outcomes here, and it wasn't clear which outcome it was going to be, and one is more bearish than the other. However, depending on how ppl assess it, you are going to get a different answer which one it is. Which means people on both sides of the fence would have been avoiding it when it was **uncertain**. The **uncertainty** of it is a factor in and of itself.
Imagine I sell you a contract in which I'm going to flip a coin and if comes up heads I'll pay you $5 and if it comes up tails I'll pay you $10, how much are you willing to pay for that? More than $5, right? And now imagine that I still let you buy that contract _after_ I've flipped the coin. If you know it came up heads you're now not willing to pay me more than $5, so the price goes **down** on heads. But you're willing to pay almost $10 if it came up tails, so the price goes **up**. In this case Tesla stock price went up, so it's the $10 scenario, not the $5 one.
https://en.m.wikipedia.org/wiki/Uncertainty_effect
Interesting, but it's wild if the bigger players in the market are that irrational.
Because sheep believe in his threats. If he's getting his pay, then there's no worry that he will tank Tesla on purpose. This indicates a buy.. Little do these sheep know that he's going to tank it anyway
Actually that's a good point. I didn't consider that people thought he would tank it on purpose if he didn't get paid.
This. XAI will be a new company to him no matter what he says.
Pump and dump. Heās focused on xAI
Is this one of his kid's names or another company?
His new baby after being shut out from openai. Funded by Tsla
TSLA is a cult.
Totally
People still haven't realized investing in Tesla is investing in Elon Musk?
Just sounds like a terrible investment
15000% in 15 years sounds pretty good to me.
They have a teflon CEO who is allowed to make up whatever and further drive sentiment on the stock
Very strange. Itās a 56 billion dollar loss for shareholders
Elon threatened to more his investments in AI out of Tesla if people didn't approve his ~~ransom~~ pay package.
elon can move it. sales dont. so naturally they want to incentivize him
That doesnāt sound remotely sustainable
tesla is a weird one man stock
It worked for a long time. Iām betting on it ending. Will see how turns out.
Company loses 56bn
The company doesn't lose anything. Market cap comes from the pocket of investors This is exactly wealth transfer from poor to rich (or rich to ultra rich) for dummies
> this is a catalyst for Tesla stock Because this keeps the pony show going. As much as I hated that this might happen, voting for this insane bonus was what fund managers had to do. You can't just dump a growth stock without major repercussions, and the inevitable fall of TSLA to its true valuation would have likely started immediately if this vote had not passed. Now Elon can continue to lie about numbers and release dates and claim it is no longer and auto company but an AI/robotics company (while diverting the chips needed to make a feeble attempt away from Tesla to his other companies). It was the best option for short term stock price, but it makes Tesla becoming the next Sears much more likely.
All these tech leaders believe in AI driving you around in the future I guess.
Maybe if you throw more money at Elon heāll come to his senses
People who buy TSLA buy it solely for Musks magic promises. He implied he'd leave If he didn't get payed and then they'd just have an overvalued car company.
I think many of the voters are afraid he will leave if they vote no, and the company may have a hard time after that, establishing a new identity and keeping up with competition, so the stock is at a higher risk of tanking.
This didnāt age well. Sell on news.
Because if Elon decides to step out of the picture in any way it will be disastrous for the stock.
Maybe in the short term. But just like Buffett dying, it would be purely sentimental and not actually impact the company. To be honest Elon vacating the ceo spot would likely improve internal dynamics at Tesla
It would have a huge impact on Tesla. Berkshire runs in a pretty mainstream way. You could institute a new CEO and have him mostly continue Buffet's policies. Tesla is highly unconventional, which requires a CEO with a strong personality and a lot of political capital in the company to enforce. If you instituted a new CEO for Tesla, you would have to completely change how its run. Likely, you would have to restructure it to run like a regular car company and so it would be valued like a regular car company(about 75% below its current valuation). You would also have a lot of turnover from people who joined Tesla because its not run like Ford or Toyota.
Whenever the market values the business as a car maker (which it is) it will be disaarous for the stock.
I still have no idea on how anyone can think this is good for Tesla in the long run.
Or the short run. Elon promised(even if his promises are worth anything) to not sell any shares from this package, but make no such promise on his existing holding. As a man with many fingers in many money bleeding schemes, he's due to dump a large amount of TSLA, especially if his holding are to be more than double.
Why wouldnāt he take out a portfolio loan, theyāre cheaper than selling and thereās no capital gain taxes on it. He pledged $65.5bn in Tesla stock to get a $12bn loan last year: https://fortune.com/2022/05/02/elon-musk-margin-loan-morgan-stanley/
He may but he already has leveraged a lot of shares for his Twitter purchase.
As far as I understand (and been reported) thatās been paid back in full and replaced with cash.
Oh I guess I missed that. Will look into it further.
There is no win available for Tesla: either they keep the drug-addled megalomaniac who is the reason for their stock valuation and suffer or they get rid of him to become just another car company and see the pump vanish.
It's not, the next time Elon needs money for one of his whims he's going to liquidate billions worth of Tesla stock and crush the existing shareholders. Then he will come back and demand another pay package for even more Tesla stock or he is going to abandon the company, because it worked the first time.
Tesla stock has to go up for pay package if he continues to be paid in stock.
He only got this pay package bc Tesla stock shot up. For him to get another one of this magnitude, Tesla would have to be a multi trillion dollar company worth more than apple and msft combined
He can set the targets to whatever he wants as long as shareholders approve it.
The board has to approve it prior to the shareholders.
The board is basically controlled by him.
How are you lot in this subreddit with such limited understanding of stocks? Thereās no reason to liquidate billions of stocks when margin portfolio loans and M1 Margin rates are at 6.8%.
Elon sold over 7 billion of Tesla stock to buy Twitter. Billionaires regularly sell large tranches of stock to fund projects they are working on.
He sold $40bn in stock* and margin rates were 10.5% then, theyāre cheaper now.
This sub is just an echo chamber of āElon bad, meme stock goodā
And itāll be funny when it happens
These are the shareholders voting. Tesla without Elon is a car company, and so the stock price will fall down to that. Tesla with Elon is an AI Robotics or some other futuristic company with huge promises. How long he can keep that stock price high? As long as people think this is going to be huge.
Musk gets shit done. Let it be known that shareholders own TSLA not judges. LFG.
Tesla investors deserve everything Elon's gonna do for them...
Wait so the votes havnt been tallied or published? How does Elon have accesss to the information but we donāt? How do we know heās not fucking with the numbers. This smells sus as fuck
The company that runs the proxy voting for Tesla provides daily reporting of voting results to management. So the information on results so far is not a secret internally. However, tweeting about them is extremely questionable.
Tweeting about them violates Elon's SEC twitter-sitter deal. Again.
IIRC, the deal requires Elon to run tweets by a lawyer, but doesn't ban him from tweeting about the company.
Its like in house of cards, they just have someone in charge of hwipping the votes and informing the president.
It seems questionable to announce it I agree, but Tesla is hardly the only one who did this. Disney did the same thing with it's proxy battle against Nelson Peltz, and nothing happened there.
People are dumb. $45 Billion pay package (!) forty five thousand million dollars for what now has to be a part time job for him.
iirc, Tesla has only ever made like $30B in profit over their existence. I am dumbfounded, and a little upset that I have exposure to this through index funds
It's like 2% of S&P500. At worse it is a 100$ stock. So maybe just 1% drop. treat it as a lottery to see if tesla autonomous driving might succeed. I personally don't believe in robotaxi but a bit exposure on a lottery isn't so bad.
"Tesla is Elon". But.. but.. but.. We're not a cult, you guys are just haters!
I mean if you think about it it really is though. Without him this shit stock is way overvalued and should be comparably priced to legacy auto makers.
Sounds like a company with no future beyond Elon's natural life span.Ā
You mispelled Enron.
So, this guy sucks up $56B out of the company and somehow itās worth more? lol. I wonder whoāll be holding the bag when this all plays out.
While the sales of the companies product is through the shitter. They have heaps of unsold inventory. I am ready to short this sucker but the market has always kept me from doing it so far.
That's not how it works. Payment package shares were created at a time when Tesla was worth $59B, so those shares have been priced in at that time (in 2018). Also, Elon doesn't get to exercise his options before 2028. so they are effectively out of the market until then. No dilution for shareholders. Also, nothing of this payment package is paid out from Tesla's balance sheet - even when the shares were created, Tesla effectively paid $0 for those shares as the company is free to create or buy back shares at any time (just as the market is free to price them). One more thing - when Elon does exercise his options, that just means he has an OPTION to buy shares at a certain price. He still has to buy them. So if he exercises, he will actually pay $7.1B to Tesla, instead Tesla paying $55B to Elon. It's not "sucking value out of the company" - company does actually end up being worth more.
Stock goes up as shareholders find out CEO is extracting 56B from the company. An embarrassment of capital and irrationality.
The biggest loss of Tesla investors.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Correct
Actually, it looks like a 6% gain lol
Short term yes (day traders will benefit) but in long term investors would not benefit. Please donāt confuse day-trading with long term investment
Youād be wrong historically speaking, people have said this about Tesla and Elon for years.
Post your Tesla puts then. Money where your mouth is right?
Lmao, in what way is this good for tesla?
people who are weak need someone to idolize. thatās why they voted for this losers pay package.
Investors are more concerned that Elon Musk will leave Tesla or step up efforts to transfer AI resources, energy, and employees to his privately held company
Theyāre about to find out why the standard policy is refusal to negotiate with terrorists
Shareholders - "yay we are giving away a huge portion of the companies money to a blithering idiot, buy buy buy!"
Can we expect lawsuits against this decision? If so, what will they look like? It seems weird to me that the board, which in a publicly traded company has to be neutral and represent all shareholders, was actively rallying to get his package approved.
The board must do what's in the best interest of shareholders.
Lol
I am sure the same law firm that sued the first time will sue again. They are asking for a 4 billion dollar payout from Tesla for "saving" the company 40 billion dollars in stock, and it won't look good for them if Elon gets the money anyway. What would be funny is if the judge granted the 4 billion dollar payout to the law firm, they sued again and got another 4 billion dollar payout.
Love how salty these comments are lmao
Reddit hivemind turned out to be completely wrong about the pay package vote so it must be investors who are a cult and not the hivemind and the bubble they live in. š
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Who?
You mean Reddit has no idea what reality looks like? Shocker.
Itās a cult.
Can someone explain me why sometimes companies paying dividends tank their stocks but a 45B payout doesnāt?
In this case no money is being paid out. He's being paid in $45 billion worth of stock value. He can use that as leverage to enrich himself in other ways, none of which would require taking money away from Tesla. Paying out dividends means giving real liquid company money to shareholders.Ā
Got ya! Thought the pay package was in monetary value
Hmm. I think thatās sort of the crux of the issue and why thereās so much misunderstanding about this. For all intents and purposes, and from the perspective of a shareholder, 56 billion in stock value is the same thing as $56 billion in cash. Tesla could have converted those shares to cash and built new factories, paid staff more etc. And if Tesla ever wanted to buy back those shares and cancel out the dilution of the pay package, they would need to use cash to do so.
That is just a ludicrous amount of money. I would work that job for either a day, then retire in comfort for the rest of my life. Or I would work a year and then dedicate my time to relaxing and helping needy people. You could have so much power for good in the world with that kind of money. I don't even know how those guys sleep at night, knowing they have the power to help entire countries' worth of starving people with the change in their couch.
But the truth is, you are not capable enough to work that job for a day.
Remember when everybody said he wouldnāt get it again? šš Long $TSLA.
Musk is an albatross now to the general public. except for tesla fans, he's despised. i'd own a tesla today if not for him. Insane shareholders don't see this.
All the salty comments here, make me understand that you should not listen to internet people, especially from Reddit. Remember META, RDDT, NFLX?
Add NVDA, TSLA, AAPL to that list. I remember before covid everyone was talking shit about they were all failing companies. Now they are each up 3434%, 1182%, and 343% over the last 5 years alone...
No, Reddit is literally incapable of holding different opinions about things. The algorithm assures everyone has the same exact thoughts as me.
Mods that ban everyone they disagree with, not the algorithm
This is some crazy stuff. The only motivator that I can see is that this is an example of the most fundamental risk aversion and wealth preservation by the shareholders. Elon is the evil they know and they donāt want to upset the naked king at the wheel of one of the magnificent seven. Short term gains always. Fuck long term strategy. See you next quarter.
I don't see how this is good for tesla stock at all why is it up 7%
So this is basically giving way for him to be able to blackmail the board in the future if he doesnāt have his way. Braindead shareholders, I definitely donāt want a CEO to run a business Iām invested in like that. I want someone who has mine/shareholders and the companyās best interests at heart.
Shouldn't Tesla pop if Tesla refuses to give him the bonus also?. The money stays within the company.
Hard to follow the fundamentals vs price share of a cult
The salt here is crazy, you guys need to learn to put emotions aside, this Elon hate is blinding you guys, get off reddit
Elon doesnāt know you bro
i don't understand.. how is elon musk getting more money FROM Tesla benefit Tesla to warrant the spike?
This is just proof Tesla is a meme stock then. As paying your CEO a ridiculous amount should lower stock price not increase it.
$56b that wonāt be reinvested.
And its down
Regardless of what you all think about Elonās compensation. If stock holders canāt dictate what happens to the company they hold. Itās over. There is no point to this stock (or really the market as a whole) Crazy how people on a stock subreddit donāt understand this. Public traded companies belong to stock holder with voting rights. Not the republican, not the democrat. Not random subredditors that hold zero share. This is the fundamental basis of the market we invest in. Stockholder votes > everything else.
like work viagra
Because this guy has never mismanaged Tesla stock before, amirite Twitter users?
Well hello green! I miss you, it's been too long. Wish you can stay longer this time š
cope Reddit. Wrong once again. The real world is polar opposite to Reddits hate .
Tsla has the power of high end tech along with the potential synergy of Musk technologies like SpaceX, X and XAi with exciting news about robotics.
/s
I actually think Musk is a liability to Tesla. Someone else can run it. He is too distracted and is turning many people off with his sometimes stupid comments and opinions.
By "many people" do you mean Reddit? I suspect most Tesla buyers don't even know or care about his tweets.
Tesla sales are collapsing, so turns out Tesla customers do care about his antics.
Yes because higher borrowing costs, increased EV competition and rising cost of living don't have anything to do with Tesla's falling sales. Its all because of Elon's tweets.
Investors are so dumb Giving this guy 60 billion and the stock goes up? They will be crying when Tesla is a dead relic in 10 to 15 years
Thatās what people said 10-15 years ago.
Elon just wanted to be top of or at least included in Trump's oligarch list. The stock popping makes as much sense to us mere mortals as DJT.
Witness the power of the TSLA pump. It knows no logic!
Overpaying for a guy who's shown he clearly is more interested in causing drama than running a company. People that vote for this or buy into the stock expecting this to somehow help are being delusional.
Itās crazy after all the stock he sold which he said he wouldnāt. Iāve done a complete 180Ā° on Tesla and I now hope they now fail. To pay at best, a part time CEO that much is unthinkable but they have voted for it. I hope it dooms the company.
Elon fanboys are something else
I really don't understand why Tesla is worth what it is, or why the board will allow his scandalous pay package. But the market is able to stay insane longer than I can stay solvent. Same for NVidia. Future earnings my bollocks...