Tesla’s nearly $1 trillion new pay plan for Musk would expand his voting power

[Ahlevah]

Elon Musk the trillionaire? This is getting way past the point of absurdity:

To obtain the first award in the plan, Musk and Tesla would need to almost double their current market cap to reach $2 trillion. The final benchmark is reaching an $8.5 trillion market cap.

Tesla's nearly $1 trillion new pay plan for Musk would expand his voting power

Tesla will also ask shareholders to vote on whether the automaker should invest in Musk's artificial intelligence company, xAI.

www.cnbc.com

So Musk’s performance (and compensation) would be largely based not on increasing revenues or profits for the company, but how much the stock goes up. If he can get the company’s market capitalization to a level at or more than 25% of the current GDP of the United States, he would receive just under $1 trillion in compensation. What a deal! But that is a big if. Personally, I don’t see it happening. Trees most certainly do not grow to the sky.

 

[Ahlevah]

I guess, at least compared to the latest jobs report, Elon and his $975 billion compensation package are old news.

 

[bythoughts]

The guy has generated the world's most laughable truck, and tanked his company's stock because everybody hates him, especially potential customers. He changes from MAGA to own-party to maybe-Vance, and his political ties get him ... a loss of government subsidies. And now they're talking about a trillion dollar pay package for him? I would say I can't think of an overall way to describe this loony-tunes land, but that would be a lie:

SELL

 

[Ahlevah]

The guy has generated the world's most laughable truck, and tanked his company's stock because everybody hates him, especially potential customers. He changes from MAGA to own-party to maybe-Vance, and his political ties get him ... a loss of government subsidies. And now they're talking about a trillion dollar pay package for him? I would say I can't think of an overall way to describe this loony-tunes land, but that would be a lie:

SELL

It is Loony Tunes. Most corporate boards would have applied some objective standards related to corporate performance, such as increases in revenues, earnings, returns on equity or invested capital, etc. His compensation would be based almost entirely on stock performance.

 

[Helix]

It's ridiculous that they would award anything for what he has done to the global brand image. Oh well. I guess I'll continue not being a customer.

 

[Carjosse]

Why anyone would ever want their investments in the hands of Musk I do not know. Paying him unfathomable amounts of money to spend his whole day posting memes and retweeting neo-Nazis on X.

Tesla paying $1 trillion for a stinking albatross to hang around the neck of Tesla.

 

[Carjosse]

It is Loony Tunes. Most corporate boards would have applied some objective standards related to corporate performance, such as increases in revenues, earnings, returns on equity or invested capital, etc. His compensation would be based almost entirely on stock performance.

He isn’t obligated to even show up to work or even actually do anything. Though that seems to be business as usual for Tesla and might be a good thing if they could get rid of his image too.

 

[Anthony60]

Is this supposed to bother anyone for some reason?

 

[Ahlevah]

Is this supposed to bother anyone for some reason?

It’s just symptomatic of the insanity that’s invaded how people—supposedly smart people on corporate boards—rationalize the value someone like Elon Musk brings to a company. Who’s to say the stock is rising thanks to him and not some other factor, like a stock market mania?

 

[Ahlevah]

It's ridiculous that they would award anything for what he has done to the global brand image. Oh well. I guess I'll continue not being a customer.

Same here. His robots and battery systems better be really good, because the Chinese are going to destroy him in EVs. It’s only a matter of time before they start building cheap EVs here.

 

[Ahlevah]

He isn’t obligated to even show up to work or even actually do anything. Though that seems to be business as usual for Tesla and might be a good thing if they could get rid of his image too.

In a CNBC interview, Yale School of Management Professor Jeffrey Sonnenfeld just called Tesla “the biggest meme stock in history.” I forget his exact language, but he basically said the company’s board has gone completely bonkers.

 

[TangoNoCash]

Best of luck to Musk. He’s dragging Tesla down at this point.

 

[Anthony60]

It’s just symptomatic of the insanity that’s invaded how people—supposedly smart people on corporate boards—rationalize the value someone like Elon Musk brings to a company. Who’s to say the stock is rising thanks to him and not some other factor, like a stock market mania?

He's made Tesla a world wide known brand. There is no other single person that you can attribute Tesla's success to.

 

[Peter]

Is this supposed to bother anyone for some reason?

You really have no problem with any company paying 1 single person $1T?

Here's an idea, why not give the money to the people who actually work for the company rather than 1 guy?

 

[Anthony60]

You really have no problem with any company paying 1 single person $1T?

Here's an idea, why not give the money to the people who actually work for the company rather than 1 guy?

Are they being forced to pay him? I'll help you with that... No, they are not. He's being paid because he's worth it. But, the most important point is that they can pay him what they choose, and you don't have a say in it.

 

[Peter]

Are they being forced to pay him? I'll help you with that... No, they are not. He's being paid because he's worth it. But, the most important point is that they can pay him what they choose, and you don't have a say in it.

That's not the point.
The point that they are even considering this is utter lunacy.
Does Musk really give more value to the company than almost all the staff combined?

Can Musk build the trucks by himself maybe?

 

[Noodlegawd]

tanked his company's stock

You must have a hilariously stupid definition of this phrase.

Tesla stock is up more than 50% in the past year, and 150% in the past 5. The company went from being worth very little in 2019 to being worth more than a $trillion today.

 

[Michael Cole]

He's made Tesla a world wide known brand.

There is no other single person that you can attribute Tesla's success to.

 

[Metric Mouse]

We told everyone to stop buying his cars years ago.

Liberals in California didn't listen. Now we have this mess. **** those ass faces who bought Teslas.

 

[Allan]

Tesla isn't doing well so I'm not sure Elon needs a raise so much as a performance review with HR.

Investing.com -- Tesla’s share of the U.S. electric vehicle market fell to its lowest level since 2017 in August as buyers opted for models from rival automakers, according to a report from Reuters.

Data from Cox Automotive showed Tesla accounted for 38% of U.S. EV sales last month, dropping below the 40% threshold for the first time since October 2017, Reuters stated.

https://finance.yahoo.com/news/tesla-u-market-share-drops-112038241.html

 

[Gatsby]

It would require some pretty heroic growth assumptions for Tesla to actually be able to hit all those benchmarks for Elon Musk to claim his bonuses. Granted, they *have* had heroic growth rates in the past, but it's a lot easier to do that when you're a scrappy startup than when you're already one of the biggest companies in the world by market cap.

Tesla's sales have been slowing in recent months...largely by the fact that Elon Musk's forays into politics have greatly damaged the brand. When you have a company that's largely driven by a cult-of-personality, things fall apart when the face of your company is so unpopular. To fix that, Elon Musk will probably need to lay off the drugs and lay off politics...and Tesla will probably need to become less synonymous with Elon Musk. I'm not sure if that's possible.

And even if they pull that off, they are facing a more prosaic problem: Other car manufacturers are catching up to Tesla in EV technology.

 

[Allan]

Other car manufacturers are catching up to Tesla in EV technology.

I would say most have surpassed Tesla, especially the Chinese.

 

[Anthony60]

That's not the point.
The point that they are even considering this is utter lunacy.
Does Musk really give more value to the company than almost all the staff combined?

Irrelevant. They can pay him what they want.

Can Musk build the trucks by himself maybe?

Who cares, not relevant either.

 

[Anthony60]

Try using your words.

 

[Peter]

You must have a hilariously stupid definition of this phrase.

Tesla stock is up more than 50% in the past year, and 150% in the past 5. The company went from being worth very little in 2019 to being worth more than a $trillion today.

Tesla sales have totally cratered since Musk decided to become Trump's number 1 fanboy an go full Nazi.

The cyber truck has been a disaster and isn't even allowed to be driven in the UK.

These are facts.