Go to main Forum page »
Goodness. A trillion dollars—$1,000,000,000,000.00 That’s a massive potential compensation package and an awful lot of zeros. I guess if you’re already worth 400 billion, you might as well take a leap of faith and shoot for the stars. I really doubt Elon Musk will hit all the numbers to unlock the full amount. The sales and profit targets seem very ambitious, maybe even beyond Musk’s ability to achieve.
Although I personally think the possible compensation package is an obscene amount of money, I’ve actually got my fingers crossed for the guy. I hope he threads the needle and scales the performance peaks required to get his grubby mitts on the dollars.
Uncomfortable as my hopes for Musk make me feel, the simple fact of the matter is this: if he achieves the near-pipedream hopes of Tesla’s board, my current holding in the business will inflate in value by an estimated 500%. That’s a tidy sum of money. Get to it, Elon—my bank balance is rooting for you even if my mind is morally uncomfortable with the amounts.
Capitalism is a sneaky little monster, worming its way into my retirement accounts. Unfortunately, I find myself aligned with its goals and aims for Mr. Musk. Some circles are harder to square than others with deep moral and ethical considerations, and to my mind, this one is a real doozy.
I’m invested through an index fund, which means Vanguard voted on my behalf—almost certainly for the package. I think I would have voted against it if my vote had actually counted, even knowing it might cost me that 500% gain. What would you have done?
Putting aside my personal feelings about that man, if I had free cash to burn right now I’d short TSLA. The pay package is a symptom of insanely poor governance. Revenue is dropping and I do not see shareholder value to match the risk.
I’ve driven EVs for more than a decade. We own two Teslas, a 3 and a Y and they are superb cars for their day (despite the horrible body panel quality). Tesla broke new ground in many areas. But I’m very unlikely to buy another when the wheels fall off these.
“The pay package is a symptom of insanely poor governance.”
My understanding is the board is a version of the friends and family plan. Only these people qualify to be on it.
I think I would feel range anxiety driving an EV, and I live in tiny little Ireland. I’d be totally traumatised in a massive country like the US.
Putting aside the moral issues around Musk and Tesla, the valuation leaves me …. puzzled. Current P/E is 287. If we assume that as a “mature” company the P/E might get to around 30, AND the valuation is going to increase five fold, that would mean earnings would need to be 48 times what they are today.
To me, investing in Tesla is only for the true believers, both morally and financially.
Through index funds, I own several companies that I would never invest in, if I were buying individual stocks. Tesla would be one of those that I would not purchase.
Same. This is oddly probably one reason why index funds are good for us. They don’t depend on our choices.
My opinion is that globally and politically he is a very dangerous man with some very dangerous beliefs and a propensity to try to insert his wealth into situations which can only destabilise countries and their citizens. So giving up some personal gain if it curbs that seems a small price to pay.
https://www.instagram.com/reel/DQkSbUdjPrB/
Absolutely. Besides, it is an obscene amount of money.
I could not agree more.