Tesla shareholders voted Thursday to restore CEO Elon Musk’s record $44.9 billion pay package that was thrown out by a Delaware judge earlier this year, sending a strong vote of confidence in his leadership of the electric vehicle maker.
The favorable vote doesn’t necessarily mean that Musk will get the all-stock compensation anytime soon. The package is likely to remain tied up in the Delaware Chancery Court and Supreme Court for months as Tesla tries to overturn the Delaware judge’s rejection.
Musk has raised doubts about his future with Tesla this year, writing on X, the social media platform he owns, that he wanted a 25% stake in the company in order to stop him from taking artificial intelligence development elsewhere. The higher stake is needed to control the use of AI, he has said.
The fools
I’m not sure about that. It sure feels like if they had a “normal” CEO, the stock price would tank. The crazies who believe in him are the only thing keeping that stock price up. Voting him out (not voting for his pay package) would, I bet, result in a big stock price correction downward.
Instead they just voted for massive stock dilution in order to hand a greater share of the company to Elon. That will definitely also affect the price.
Eventually all Ponzi schemes collapse.
But not because the suckers with skin already in the game vote to crash it.
I guess if you’re hanging on to your Tesla stock at this point you must have some faith in Musk?
Considering that his board are all fighting to latch onto his dick; ether family or friends…
… I can’t imagine any serious investor being in on Tesla. There’s just too much potential for graft.
If I held any Tesla shares, I would be rather cross right now.
It’s a great time to ditch your Tesla stock, folks.
Someone ELI5 why does a Delaware court have any say over tesla stock options?
This Reuters article provides a decent summary: https://www.reuters.com/legal/case-against-elon-musks-56-billion-pay-package-2024-01-30/
Tesla is incorporated in Delaware.
To add onto this for anyone interested, the reason it and many businesses are incorporated in Delaware specifically is because it has a very pro-business legal and judicial system. Many businesses benefit from choosing that state over others and can find loopholes that allow them to save money (though there have been efforts to eliminate those loopholes in much of the country).
Phil Edwards recently released a video on this, which is how I found out about it: https://youtu.be/b4q99EuZF_Q
And this is the article that inspired the video: https://www.atlasobscura.com/places/corporation-trust-center
tesla is fucked lol.
No, it’s the customers who’s gonna be fucked
And the employees
Which is it, 56 or 44 billion? If you guys don’t know, I’ll take the difference.
Granted, you now owe 12 billion.
Doh!
The simple charm of this exchange had me rolling
If it’s in the form of shares so the cash value goes up and down over time with the share price. He’s also prevented from immediately selling those shares, so it’s in his interest to stick with Tesla and try to ensure that it does well. It’s not so ridiculous an arrangement as most people are interpreting it based on just a few headlines.
Come on man. How much good could be done with that instead of sending it to one person? I think personal wealth should get capped at 1 billion period (not even per year). Even if that cash went directly to employees, it would do more good for the company itself.
It is as ridiculous as arrangement no matter the form of currency. The inequality is grotesque at this point.
Again, it’s shares, not a big heap of cash. They’re giving Elon Musk a greater share of ownership in Tesla.
If you want to cap personal wealth like that, what happens when someone founds a company and it grows to be worth more than a billion, do they start losing control of shares until they’re below that threshold? Who gets them? What if the share price starts going down again, do they get those shares back?
There are many options. Why should 1 person get to direct all of it just because they started something? Did they do it alone? No way, they never do. I believe in a more proportional equity in those situations.
Secondly, Elon didn’t found Tesla. It’s a very capitalist idea to think a leader should come away with everything. It’s part of why the world is in it’s current state.
do they start losing control of shares until they’re below that threshold?
Sounds good to me. Dole them out to employees.
Genuine question, do you think that person is obligated to lose control of the company?
There is a significant difference between “lose control of the company” and “not being the exclusive beneficiary of the success of the company”, and it’s a strawman argument to suggest otherwise.
Even with a 1 billion dollar cap, the vast majority of companies are not worth nearly a billion dollars, and of those that are, you would have to double that before that owner would not have a controlling interest, and while I acknowledge that the owner losing control of the company is not necessarily an intentional result of this kind of rule, by the time a company reaches a value where that would even be a threat, they have such an outsized impact on society through their operation that it is actually irresponsible for any single person or small group of people to have such control. Organizations can grow to have outsized impact on millions of lives, entire communities, or even the direction of history. What is reprehensible isn’t capping their control of such an organization - it’s allowing that control to impact the world with absolutely no check by those its operation affects. I don’t know your country of origin, but if you are American you at least pay lip service to the idea that power derives from the consent of those over whom it is wielded. I would suggest to you the radical interpretation is that that should only apply to government when extremely large companies have much, much more power to impact peoples’ daily lives.
Yes, it’s a billion dollar company, not a cherished family farm. Separate from the wealth hoarding it’s probably a good policy in general for companies of that size to not be under the control of a single person. Why is this even a question?
But in many cases their vote/say would decline to insignificance, literally being pushed out of their own company because they made good decisions.
Should a general in the army get demoted to private because they led a successful operation?
I don’t even know how you would define this for private companies. You would have to devise some arbitrary valuation and then remove some other arbitrary chunk of a persons stake in the company.
Besides, this doesn’t even solve the money problem anyway, a multi billionaire can just do what they already do and own hundreds of millions in equity in several companies and assets.
Why do you think autocratic control of a company is worse than other forms? You say it’s “probably good practice”, but as we can see with publicly traded companies which generally are run by committee and owned by millions of people, the quality of a company isn’t really dictated by that, in fact, in the case of Tesla, this was voted in by the shareholders, by a wide margin of 72 percent, so the majority of stake holders voted for this. Yes Elon has a big vote at 13 percent, but this means that 59% of stake holders wanted this, Tesla btw, is > 40% owned by retail investors (e.g. regular people) and so this is the result, a majority decision, mostly made by individual stake holders in the company. Many institutional investors actually voted against the pay package.
Saying ‘why is this even a question’ when someone inquired for more information after you present a radical change to a worldwide economic concept, is just rude and thought terminating. Instead of encouraging discussion, you want to shut people down so you can get feel good points.
If you think there is only one good way to run a business and it happens to be the way you thought up, I encourage you to self reflect.
It’s stock so it was valued at $56 billion when it was initially blocked. Now it is valued at $44 billion.
“Well, I didn’t vote for you.”
You don’t vote for Musks!
I wonder how tesla owners feel about financing the musky rats purchase of twitter?
This is wild, ‘yes to enrich shareholders i will dilute the shit out if them and give a coked out manbaby a 25% stake’
And giving a giant payday is very likely to inspire him to look for new things to buy. That’s a full Twitter in bonus shares and I think Musk looks at his vast paper wealth and tends to always want a new project rather than for the numbers to just steadily go up.
Making a bad bet on Twitter which actually left him meaningfully poorer meant he’d be more likely to devote time to Tesla. Giving him a bunch of money to burn a hole in his pocket makes him more likely to try something else because it’s effectively free.
Do you really want him devoting more time to Tesla, though? His best-performing company is SpaceX, which is largely because he leaves it the fuck alone, for the most part.
Why wait for the numbers to steadily go up when you can pump-and-dump and get away with it? Which he does and does.
Lol, so Telsa is fucked?
