according to a social media post by Musk himself
Very few in the comments seems to have noticed this pretty crucial part.
Let’s wait and see the actual result.Edit:
Ah well, they actually went ahead and did it. Good for Musk I guess, I doubt it’s good for anybody else.
I’d love to hear from anyone at all who can give me a reason why the shareholders would vote for this. The stock value has been going down for both the 1 year and 3 year time frames, so he’s not doing great things today. The company only made a profit of $18B last year, so this is like wiping out 3 years of profitability in one step. This package is over half of the company’s total revenue!! In what world do investors think it’s a good idea to say one guy deserves almost as much as the entire company brings in for a year?
Nepo babies understand each other’s need to suck money from people who produce the value.
I’ll wait for the financial analysts that I both trust, and I know hate Musk, before I have any confidence in answering that question.
But… my best uninformed guess is that it’s less fanboy worship, and more fear that Musk is the only thing propping up the insane stock valuation.
I’m assuming that Musk has a complex web of possibly illegal and highly engineered financial instruments that keep that stock pumping, or at least, not crashing - yet.
Maybe those who voted to approve might be aware, or involved, in that house of cards and believe removing Musk would be akin to blowing on it.
But I’m just pulling all of this out of my ass, so who knows…
It might be as simple as the majority of Tesla shareholders who voted to approve, including the institutional ones, are really just submental morons.
This is probably the right answer.
As the holder of roughly $45 worth of Tesla stock, I voted against his pay package and every other shady, bullshit proposal on the ballot. My vote counted for almost nothing and I’d probably be considered an “activist shareholder” anyway, but it was worth the money I’ve lost to get to click that button anyway.
Because it makes the line go up?
Sustainability doesn’t matter. Musk’s hype holds the market value up (in the short term), and kicking him out could tank it from the controversy alone. That’s all that matters.
I like to think many investors are buy and hold, long term institutional, Warren acolytes or whatever, but in reality the outlook is just so short for so many people now. What matters is the next day and the next quarter, and they can just bail out after that.
Imagine if they had instead hired 500,000 people on $100,000 each. They could have bought the entire city of Detroit and had it making Teslas, instead they’ve got one coked up narcissist.
Insane. No one person should have, or deserve, 56 billion dollars. And especially this piece of shit.
is it his yearly bonus? I can’t seem to understand it because of so he is leeching and crippling the shit out of tesla
I don’t think so. I think it’s a one-time compensation package at present, but I could be wrong.
I don’t understand it because that money could go to the actual people doing the actual work — and I’m quite sure they deserve it and could use it far more than Musk.
How is this company still so valuable.
I would buy literally any other electric car than a Tesla.
They have a huge head start. And their battery tech is top notch even if the rest of the vehicle is poorly build.
I’d personally never buy one either, for multiple reasons, but most people don’t care/know about the shitty build quality, the shitty ai and the scummy locking features down remotely when you sell the car.
Is the battery tech that good though? Genuinely don’t know.
Seems other manufacturers have a huge head start in every other area of manufacturing cars and even if they still lag behind on battery tech, it won’t be long before they catch up on this one metric, whereas Tesla would have to catch up on every other metric.
It was 5 years ago. Other companies are catching up.
One place they aren’t catching up is non-SUV EVs. There are a few, but if you want an EV that isn’t an SUV with over 250mi range, and cross Tesla off the list, your options become real thin.
Options were really thin to begin with. Muricans love their huge ugly boxes. The options are getting much better now. With a quick search I found ten sedans shapeable in the states and crossing off Tesla removed three.
But a lot of those sedans have range around 120mi, like the Mini EV or BMW i3. Many of the one’s that remain are luxury brands with luxury prices, like the BMW i7 or Porsche Taycan.
I specifically did a search for EVs with over 250 mile range, because that was your qualifier.
I’m sure there are more than 10 sedan models available in the united states, did you look at Mercedes and bmw? They should have a few models.
And you don’t consider tesla a luxury brand with luxury prices?
Compared to Porsche, or BMWs over an i3 size? No.
Kia, Hyundai, BMW, Porsche, Volvo, Mercedes, VW, Polestar, to name a few.
It is. Their cooling / heating system along with the battery is top notch. Others are catching up though.
And yes in terms of fit and build quality most actual car manufacturers are ahead.
Of course you also have Ford an ICE manufacturer that’s been building cars for centuries and still manages to produce shit with awful QA and constant recalls.
The battery is sourced from Ganfeng Lithium, CATL, Panasonic, and/or LG Chemical. The majority actually comes from CATL. The world’s leading EV battery manufacturer. Various automakers work with them. The cells arrive at the automakers manufacturing and all they do is pack it into a case. The statement they have leading battery tech is disingenuous. No matter which automaker you look at, they’re using the same cells from the same sources.
Due to a bunch of political mess with China, both CATL and automakers are trying to get around it. https://www.reuters.com/business/autos-transportation/catl-talks-with-tesla-global-automakers-us-licensing-wsj-reports-2024-03-25/
Lastly, Tesla isn’t ahead. China is. It’s why automakers are going to them. Credit where it’s due, Tesla did push for EV adoption outside of China. But that’s about it.
Hey OP here, thanks for pointing this out to me as I had no clue if the other person was right or not.
I don’t think it’s as cut and dry as you’re saying https://insideevs.com/news/587455/batteries-tesla-using-electric-cars/
Isn’t it just a standard Panasonic 18650? And aren’t they changing their batteries to a Chinese brand?
Looks like only the S and X still use 18650s. The 3 and Y are using larger 2170 cells and apparently they’re also buying from LG not just Panasonic.
Some use the larger cells, but not all. They apparently are a bust and don’t offer increased energy density like they had originally claimed.
The lfp cells come from China, and are now being heavily taxed.
There’s a big difference between the market capitalization and book value. Tesla’s stock is probably way overvalued but I can’t say for sure since I don’t own any of their stock and haven’t looked into their financials.
They have the premier charging network in the United States.
Unfortunately, nothing else comes close and probably won’t for a few years… Like 10 years at least. The US is probably a decade behind Europe’s electrification at this point, and about 75 years behind it’s rail electrification.
I’ve never even seen a Tesla Supercharger in the same state they build these things in, other than around the plant in Fremont when I worked there. Plenty of non-Tesla ones, though.
Tesla “shareholders” clearly don’t have the interests of their company in mind if they’re approving a 56 billion dollar compensation package for their “CEO.”
We’re living in a new age of personality cults.
We really are
Tesla shareholders are preparing for a big short or something.
Wait…when did it go from 46 to 56?
And also…do the “shareholders” think this will improve the value of the company? Isn’t it more than half of their revenue? Wouldn’t this actually be a really bad thing for Tesla’s value? Isn’t Tesla one of the few EV producers with quickly dropping sales figures? Are the shareholders actually just Mlon Eusk? Enquiring minds want to know!
Those idiots decided to throw away their money to a grifter, who are we to judge? Let them drive the company to the ground, plenty of EV producers actually making good cars.
I’d be fine with all them diamond handing their way to bankruptcy, if it didn’t help enrich that dickhead musk.
They turned on the fully automated self driving feature and now they cannot turn it off.
plenty of EV producers actually making good cars.
Are there? I’m waiting. Maybe the Ionic 6.
I mean, this is actually probably the “right” decision from a shareholder perspective.
Delaware is still going to stop that bribe any time soon. But this way the stock won’t tank when musk guts the company out of spite and they can sell off their shares over the next few weeks/months.
Horrible for the company but… that company was already fucked.
I’m not super well versed with economics, could you eli5 how it’s a good decision for the shareholders? Not being snarky, I’d actually like to know.
…
Delaware is still going to stop that bribe any time soon. But this way the stock won’t tank when musk guts the company out of spite and they can sell off their shares over the next few weeks/months.
Horrible for the company but… that company was already fucked.
Shhhhh…I haven’t been up for 18hrs, and I certainly haven’t been drinking. Just…just shhhhhhh.
One of the votes is moving from Delaware to Texas. So enjoy that Texas judge.
That’s like, a million people’s wages. Absurd.
It’s far, far more money than all the people he just laid off because he “had no other choice”
It’s more money than the total amount of profit the company has EVER made across ALL years it’s been operating combined.
The company CANNOT liquidate all that money without literally killing itself. Tesla is walking dead.
Is it mostly stock? That would just devalue all the existing shares.
It’s stock, not cash
Does it matter?
Elon sold the vast majority of his stock in tesla before. He’ll do it again. To him it is literally liquid cash and he will treat it like so.
So I’m going to say it again. This will literally kill tesla.
Which he can borrow cash against
I like to compare these amounts as time.
1 million seconds is about 11 days. 1 billion seconds is almost 32 years.
When a dragon hoards the people’s gold, the solution isn’t to give it more gold.
The equivalent of 3+ years of tesla profits? Sounds totally reasonable and sustainable lmao.
It’s dat dem dere one of dem market corrections acomin?
Then they are completely retarded idiots. I look forward to seeing them lose more money
I can only assume they are somehow expecting a cut or kickback from this, I can’t think of anything he’s done in the last 10 years that was actually good for the company. You have to live under a rock, or more accurately in an echo chamber, to believe someone like this is good for the profitability of a company, let alone deserves that many zeros.
I think I’d calculated this out to $34000 per unit sold last year.
That’s nucking futs.
Why would anyone need that much money.
Elon provides invaluable support to the company and deserves to be compensated for . . . hahaha, no I can’t write that with a straight face.
To buy the next website that people are making fun of him on.
Don’t worry, it will trickle down.
The stupid shareholders are financing Musk’s Twitter-disaster.
This company is doomed lol. Fucking dimwits.
German & Chinese car makers will be happy.
