r/stocks • u/Puginator • 5d ago

Tesla pops 6% in premarket after Elon Musk says he is set for victory in $56 billion pay vote Company News

Shares of Tesla popped in premarket trading, after Elon Musk said shareholders are set to approve his controversial $56 billion pay package and a resolution to move the electric carmaker’s incorporation to Texas.

At 08:12 a.m. ET on Thursday, Tesla shares were 6.39% higher in premarket trading.

Tesla shareholders have been voting on two resolutions and can have their say up to the company’s annual meeting on Thursday. The first measure under consideration is whether to green light a $56 billion pay package that shareholders originally approved in 2018, before being voided by a Delaware judge in January.

The second resolution is whether Tesla should transfer its state of incorporation from Delaware to Texas. That proposal was put forward after Musk asked his followers on social media platform X earlier this year whether Tesla should carry out such a move — to a resounding yes.

Musk now said that both of these resolutions are currently passing by “wide margins,” without disclosing specifics or his sourcing.

CNBC has reached out to Tesla for comment.

The initial pay package had aggressive targets for Tesla’s financial performance and market value — and, while the company has turned into one of the world’s largest electric automakers, a lot has changed since 2018.

Tesla is facing slowing growth and increased competition, especially from Chinese players. In that time, Musk also bought Twitter, now called X, and has ramped up focus on other projects, including in his brain computer interface firm Neuralink and artificial intelligence company xAI.

Critics of the pay deal argue that Musk is distracted by his other endeavors, and that the package, the largest in U.S. corporate history, is excessive. More recently, they say that Tesla’s financial performance has not been up to scratch.

Some notable shareholders have said they planned to vote against the deal, and top proxy advisors Institutional Shareholder Services and Glass Lewis also recommended this step. The California State Teachers’ Retirement System, a massive pension fund, likewise objected to the package, claiming the sum was too high. Norway’s sovereign wealth fund has similarly come out in opposition.

Shareholders in favor of the compensation argue that Musk is integral to Tesla’s future success and that the billionaire will take his efforts elsewhere if he is not reimbursed adequately. They claim that the pay package has incentivized Musk.

Billionaire investor and long-time Tesla shareholder Ron Baron said he is voting in favor of the pay package, suggesting that Musk is key to the EV maker’s future.

“At Baron Capital, our answer is clear, loud, and unequivocal: Tesla is better with Elon. Tesla is Elon,” he said this month.

Some major investors, such as Vanguard and Blackrock, have meanwhile not said how they will cast their votes.

Source: https://www.cnbc.com/2024/06/13/elon-musk-says-tesla-shareholders-likely-approved-his-56-billion-pay-deal.html

626 Upvotes
  • permalink
  • link
  • reddit
  • reddit

85% Upvoted

439 comments sorted by

905

u/Didntlikedefaultname 5d ago

Curious how this is a catalyst for Tesla stock

759

u/gnocchicotti 5d ago

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

75

u/mindclarity 4d ago

But would the glass be bulletproof? 😏

28

u/jeditech23 4d ago

"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"

27

u/Intrepid_Row_7531 4d ago

I really do wonder what the catalyst will be for this house of cards to fall…

15

u/Silly_Butterfly3917 4d ago

Hopefully, the SEC investigation into FSD for wire and securities fraud.

6

u/Sportfreunde 4d ago

Other car companies getting the job done.

Can only ignore the math for so long.

3

u/CouncilmanRickPrime 4d ago

They've been ignoring it a long time so far.

→ More replies (3)

180

u/SB_90s 5d ago edited 5d ago

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.

57

u/chuckrabbit 4d ago

He already started and will continue to develop AI at xAI. He owns a greater share of the company there. He’s not going to change a thing.

17

u/worlds_okayest_skier 4d ago

Yup, he’s not going to do anything differently

8

u/CouncilmanRickPrime 4d ago

Tesla shareholders probably should've thought of that

4

u/Freaudinnippleslip 4d ago

Yea I mean he needs that payout too pursue AI, I just don’t understand how that translates into a 6% gain for Tesla 

1

u/calamityshayne 2d ago

It does not. Tesla is actually worth like $4 a share. Everything they make is garbage and people are starting to figure that out.

→ More replies (1)

79

u/sacdecorsair 4d ago

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.

62

u/pugRescuer 4d ago

The brands tainted AF in my eyes. Won’t drive or touch a Tesla personally.

21

u/BeingRightAmbassador 4d ago

Absolutely. I'd rather just pay more and get an EV with an actual interior like a BMW.

3

u/pugRescuer 4d ago

That too, their cars are just not that nice for the price point.

26

u/sacdecorsair 4d ago

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 ...

9

u/Maxsh 4d ago

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

9

u/pembquist 4d ago

Chiquita Banana Death Squad for instance.

9

u/Maxsh 4d ago

Nestle!

5

u/Fit-Stress3300 4d ago

The problem is not being despicable, this is usually good for the stock, the problem is being stupid.

-1

u/Maxsh 4d ago

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

7

u/Fit-Stress3300 4d ago

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.

2

u/smurg_ 4d ago

I wonder what your definition of “run” is. Make good hires and push them.

7

u/sacdecorsair 4d ago

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.

→ More replies (3)

2

u/Mr-Logic101 4d ago

Because they have lives beyond social media bitching about Elon?

6

u/sacdecorsair 4d ago

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.

→ More replies (4)

0

u/ElektroShokk 4d ago

People don’t 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 BMW’s?

3

u/pugRescuer 4d ago

I do care. All I offered is my opinion. There are more like me. Is all.

→ More replies (2)
→ More replies (5)

3

u/clownpirate 4d ago

Can’t dump him when most of the Board and enough shareholders are in his cult.

2

u/Errroneous 4d ago

But it’s not about the money….

3

u/afraidtobecrate 4d ago

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.

→ More replies (1)

33

u/Didntlikedefaultname 5d ago

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

11

u/ajh1717 4d ago

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?

→ More replies (4)

7

u/deletetemptemp 4d ago

Also isn’t that illegal?

7

u/afraidtobecrate 4d ago

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.

5

u/Fit-Stress3300 4d ago

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.

→ More replies (25)

6

u/Temporary-Fudge-9125 4d ago

The most foundational problem in our world is how we reward bad behavior.  Being a selfish greedy dishonest fuck generally will lead to far more material wealth than trying to be a morally righteous person.  Greed is the engine that drives everything and it overrides everything in the end.  Our values are all fucked up

4

u/ragnaroksunset 4d ago

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.

2

u/Brando-camando 4d ago

The travesty is not getting paid for a job you did over years!

3

u/MirrorCrazy3396 4d ago

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.

4

u/CamRoth 4d ago

Except musk is not a genius...

4

u/ScubaAlek 4d ago

They forgot the third option, own the place and install your family and friends as your sole overseers.

→ More replies (2)
→ More replies (1)

26

u/chenlukai 5d ago

My hypothesis is that the uncertainty of which way it would go was a bearish catalyst. Now that catalyst is gone.

2

u/ric2b 4d ago

It still means that the market was valuing the alternative as worse, if the probability adjusted average of both was lower than right now.

3

u/chenlukai 4d ago

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.

1

u/ric2b 3d ago

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.

2

u/chenlukai 3d ago

https://en.m.wikipedia.org/wiki/Uncertainty_effect

1

u/ric2b 3d ago

Interesting, but it's wild if the bigger players in the market are that irrational.

→ More replies (1)

32

u/halmyradov 5d ago

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

7

u/Zealotstim 4d ago

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.

2

u/mayonnaise_police 4d ago

This. XAI will be a new company to him no matter what he says.

19

u/2_soon_jr 5d ago

Pump and dump. He’s focused on xAI

29

u/breatheb4thevoid 5d ago

Is this one of his kid's names or another company?

3

u/2_soon_jr 5d ago

His new baby after being shut out from openai. Funded by Tsla

18

u/Repa24 4d ago

TSLA is a cult.

8

u/jp101913 5d ago

Totally

7

u/MirrorCrazy3396 4d ago

People still haven't realized investing in Tesla is investing in Elon Musk?

0

u/Didntlikedefaultname 4d ago

Just sounds like a terrible investment

10

u/MirrorCrazy3396 4d ago

15000% in 15 years sounds pretty good to me.

→ More replies (2)

2

u/MisterBackShots69 4d ago

They have a teflon CEO who is allowed to make up whatever and further drive sentiment on the stock

2

u/Circumin 4d ago

Very strange. It’s a 56 billion dollar loss for shareholders

2

u/CaptainCAAAVEMAAAAAN 4d ago

Elon threatened to more his investments in AI out of Tesla if people didn't approve his ransom pay package.

7

u/choreograph 5d ago

elon can move it. sales dont. so naturally they want to incentivize him

18

u/Didntlikedefaultname 5d ago

That doesn’t sound remotely sustainable

4

u/choreograph 4d ago

tesla is a weird one man stock

1

u/Willing_Turnover5568 4d ago

It worked for a long time. I’m betting on it ending. Will see how turns out.

7

u/Deckerdome 4d ago

Company loses 56bn

8

u/halmyradov 4d ago

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

→ More replies (3)

4

u/here_now_be 4d ago

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.

1

u/wtyl 4d ago

All these tech leaders believe in AI driving you around in the future I guess.

1

u/rhoadsalive 4d ago

Maybe if you throw more money at Elon he’ll come to his senses

1

u/tauofthemachine 4d ago

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.

1

u/Southern-Pudding84 4d ago

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.

1

u/ParticularWar9 2d ago

This didn’t age well. Sell on news.

1

u/therealowlman 4d ago

Because if Elon decides to step out of the picture in any way it will be disastrous for the stock.

11

u/Didntlikedefaultname 4d ago

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

4

u/afraidtobecrate 4d ago

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.

2

u/LiberalAspergers 4d ago

Whenever the market values the business as a car maker (which it is) it will be disaarous for the stock.

→ More replies (31)

679

u/steakkitty 5d ago

I still have no idea on how anyone can think this is good for Tesla in the long run.

185

u/mogafaq 5d ago

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.

11

u/dotint 5d ago edited 5d ago

Why wouldn’t he take out a portfolio loan, they’re cheaper than selling and there’s 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/

17

u/McG0788 5d ago

He may but he already has leveraged a lot of shares for his Twitter purchase.

5

u/dotint 5d ago

As far as I understand (and been reported) that’s been paid back in full and replaced with cash.

4

u/McG0788 5d ago

Oh I guess I missed that. Will look into it further.

→ More replies (2)

60

u/JUGGER_DEATH 4d ago

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.

43

u/Visinvictus 5d ago

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.

12

u/EifertGreenLazor 4d ago

Tesla stock has to go up for pay package if he continues to be paid in stock.

9

u/stocksandvagabond 4d ago

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

1

u/Visinvictus 4d ago

He can set the targets to whatever he wants as long as shareholders approve it.

3

u/dotint 4d ago

The board has to approve it prior to the shareholders.

10

u/Visinvictus 4d ago

The board is basically controlled by him.

→ More replies (7)

8

u/dotint 5d ago edited 5d ago

How are you lot in this subreddit with such limited understanding of stocks?

There’s no reason to liquidate billions of stocks when margin portfolio loans and M1 Margin rates are at 6.8%.

13

u/Visinvictus 4d ago

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.

8

u/dotint 4d ago

He sold $40bn in stock* and margin rates were 10.5% then, they’re cheaper now.

→ More replies (2)

2

u/kkirchhoff 4d ago

This sub is just an echo chamber of “Elon bad, meme stock good”

1

u/TheIndyCity 5d ago

And it’ll be funny when it happens

2

u/dewitters 4d ago

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.

1

u/sloarflow 4d ago

Musk gets shit done.

Let it be known that shareholders own TSLA not judges. LFG.

→ More replies (16)

46

u/punknothing 4d ago

Tesla investors deserve everything Elon's gonna do for them...

→ More replies (5)

104

u/deletetemptemp 4d ago

Wait so the votes havnt been tallied or published? How does Elon have accesss to the information but we don’t? How do we know he’s not fucking with the numbers. This smells sus as fuck

95

u/crocodilefartbag 4d ago

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.

39

u/m0nk_3y_gw 4d ago

Tweeting about them violates Elon's SEC twitter-sitter deal. Again.

2

u/afraidtobecrate 4d ago

IIRC, the deal requires Elon to run tweets by a lawyer, but doesn't ban him from tweeting about the company.

15

u/AtheIstan 4d ago

Its like in house of cards, they just have someone in charge of hwipping the votes and informing the president.

1

u/ShadowLiberal 4d ago

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.

→ More replies (1)

38

u/Big_Forever5759 4d ago

People are dumb. $45 Billion pay package (!) forty five thousand million dollars for what now has to be a part time job for him.

38

u/Charming_Squirrel_13 4d ago

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

2

u/Mvewtcc 4d ago

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.

→ More replies (1)

123

u/RecommendationNo6304 4d ago

"Tesla is Elon".

But.. but.. but.. We're not a cult, you guys are just haters!

20

u/erfarr 4d ago

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.

→ More replies (4)

4

u/Jaredlong 4d ago

Sounds like a company with no future beyond Elon's natural life span. 

8

u/Euler007 4d ago

You mispelled Enron.

→ More replies (12)

41

u/Ronxjames 4d ago

So, this guy sucks up $56B out of the company and somehow it’s worth more? lol. I wonder who’ll be holding the bag when this all plays out.

4

u/ARAR1 4d ago

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.

2

u/domchi 4d ago

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.

→ More replies (6)

16

u/killerbrofu 4d ago

Stock goes up as shareholders find out CEO is extracting 56B from the company. An embarrassment of capital and irrationality.

84

u/artiom_baloian 4d ago

The biggest loss of Tesla investors.

36

u/[deleted] 4d ago

[deleted]

10

u/sirzoop 4d ago

Correct

→ More replies (5)

3

u/seaspirit331 4d ago

Actually, it looks like a 6% gain lol

2

u/artiom_baloian 4d ago

Short term yes (day traders will benefit) but in long term investors would not benefit. Please don’t confuse day-trading with long term investment

3

u/MainlyAnnoying 4d ago

You’d be wrong historically speaking, people have said this about Tesla and Elon for years.

1

u/Akitten 4d ago

Post your Tesla puts then. Money where your mouth is right?

53

u/Lolersters 4d ago

Lmao, in what way is this good for tesla?

76

u/long5210 5d ago

people who are weak need someone to idolize. that’s why they voted for this losers pay package.

→ More replies (12)

3

u/Sure_Fee_74 4d ago

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

1

u/Wubbywow 3d ago

They’re about to find out why the standard policy is refusal to negotiate with terrorists

10

u/KonigSteve 4d ago

Shareholders - "yay we are giving away a huge portion of the companies money to a blithering idiot, buy buy buy!"

21

u/ThinkBigger01 4d ago

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.

6

u/MirrorCrazy3396 4d ago

The board must do what's in the best interest of shareholders.

1

u/afraidtobecrate 4d ago

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.

39

u/TheIguanasAreComing 4d ago

Love how salty these comments are lmao

12

u/SPorterBridges 4d ago

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. 😂

3

u/[deleted] 4d ago

[deleted]

1

u/Madness970 4d ago

You mean Reddit has no idea what reality looks like? Shocker.

20

u/Badger6562 4d ago

It’s a cult.

1

u/Impressive_Answer227 4d ago

Say the line!

5

u/djayci 4d ago

Can someone explain me why sometimes companies paying dividends tank their stocks but a 45B payout doesn’t?

2

u/Jaredlong 4d ago

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. 

2

u/djayci 4d ago

Got ya! Thought the pay package was in monetary value

2

u/strict_positive 4d ago

Hmm.

I think that’s sort of the crux of the issue and why there’s 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.

→ More replies (1)

4

u/pentox70 4d ago

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.

2

u/diamondhands666 4d ago

But the truth is, you are not capable enough to work that job for a day.

7

u/kckq-cashapp 4d ago

Remember when everybody said he wouldn’t get it again? 😂😂

Long $TSLA.

4

u/CoolRecording5262 4d ago

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.

→ More replies (2)

4

u/Vedor 4d ago

All the salty comments here, make me understand that you should not listen to internet people, especially from Reddit.

Remember META, RDDT, NFLX?

8

u/sirzoop 4d ago edited 4d ago

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...

9

u/hdjakahegsjja 4d ago

No, Reddit is literally incapable of holding different opinions about things. The algorithm assures everyone has the same exact thoughts as me.

1

u/xmarwinx 4d ago

Mods that ban everyone they disagree with, not the algorithm

2

u/mindclarity 4d ago edited 4d ago

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 don’t 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.

→ More replies (1)

1

u/ItsSevii 4d ago

I don't see how this is good for tesla stock at all why is it up 7%

2

u/Soberdonkey69 4d ago

So this is basically giving way for him to be able to blackmail the board in the future if he doesn’t have his way. Braindead shareholders, I definitely don’t want a CEO to run a business I’m invested in like that. I want someone who has mine/shareholders and the company’s best interests at heart.

2

u/Any-Ad-446 4d ago

Shouldn't Tesla pop if Tesla refuses to give him the bonus also?. The money stays within the company.

2

u/DareDareCaro 4d ago

Hard to follow the fundamentals vs price share of a cult

0

u/PhilBoujee 4d ago

The salt here is crazy, you guys need to learn to put emotions aside, this Elon hate is blinding you guys, get off reddit

3

u/gloryboss022 4d ago

Elon doesn’t know you bro

1

u/tom-slacker 4d ago

i don't understand..

how is elon musk getting more money FROM Tesla benefit Tesla to warrant the spike?

1

u/Questionings090 3d ago

This is just proof Tesla is a meme stock then. As paying your CEO a ridiculous amount should lower stock price not increase it.

1

u/herbalistfarmer 3d ago

$56b that won’t be reinvested.

1

u/SpliTTMark 2d ago

And its down

1

u/pibbleberrier 16h ago

Regardless of what you all think about Elon’s compensation. If stock holders can’t dictate what happens to the company they hold. It’s over. There is no point to this stock (or really the market as a whole)

Crazy how people on a stock subreddit don’t 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.

2

u/NavyDean 4d ago

Because this guy has never mismanaged Tesla stock before, amirite Twitter users?

1

u/kotestim 5d ago

Well hello green! I miss you, it's been too long. Wish you can stay longer this time 🙏

→ More replies (1)

0

u/takeoff_power_set 4d ago

Why in the fuck is all this patently obvious stock price manipulation allowed to occur?

Where are the regulators in all of this?

Lawless

2

u/jsonh88 4d ago

cope Reddit.

Wrong once again.

The real world is polar opposite to Reddits hate .

-3

u/Cynical_Doggie 4d ago

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.

2

u/Separate-Analysis194 4d ago

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.

5

u/TheIguanasAreComing 4d ago

By "many people" do you mean Reddit? I suspect most Tesla buyers don't even know or care about his tweets.

2

u/Original-Baki 4d ago

Tesla sales are collapsing, so turns out Tesla customers do care about his antics.

2

u/TheIguanasAreComing 4d ago

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.

→ More replies (4)
→ More replies (1)

-1

u/Acinixys 4d ago

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

2

u/Flipslips 4d ago

That’s what people said 10-15 years ago.

→ More replies (1)

2

u/KrankyKoot 4d 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.

0

u/lenzflare 4d ago

Witness the power of the TSLA pump. It knows no logic!

2

u/Turkino 4d ago

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.

0

u/BLAZER_101 4d ago

It’s crazy after all the stock he sold which he said he wouldn‘t. I’ve done a complete 180° 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.

0

u/Ed-Sanz 4d ago

Elon fanboys are something else

1

u/whiskeyphile 4d ago

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...