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> Articles/Bylaws would likely give Musk control, even though he only holds 20%. But Articles and Bylaws can be rewritten at the whim of the majority sharehold

> Articles/Bylaws would likely give Musk control, even though he only holds 20%. But Articles and Bylaws can be rewritten at the whim of the majority shareholder, no? I don't doubt that's how it would be initially structured (otherwise it would just be a hostile takeover) I'm just saying it's putting Tesla's future in the hands of whoever holds the most shares.

11thEarlOfMar 8y ago
Google has three classes of shares: A, B and C. A shares get one vote, C shares get none and B shares get 10 votes. Brin, Page, Schmidt own all the B shares. [1] For FB, Zuck holds a class of shares where each of his counts as 10 vs. the common shares.[2] [1] https://www.investopedia.com/articles/markets/052215/goog-or-googl-which-google-should-you-buy.asp https://www.investopedia.com/articles/markets/052215/goog-or... [2] https://www.cnbc.com/2018/03/20/shareholders-wont-force-zuckerbergs-hand-in-facebook-management.html https://www.cnbc.com/2018/03/20/shareholders-wont-force-zuck...
- peeters 8y ago
  Hmm, interesting. I thought we were just talking about voting shares. Musk has said current shareholders would be able to hold on to their shares. Do you think behind that statement he implied "but will lose voting status"?
  - 11thEarlOfMar 8y ago
    Lose or reduce. Musk would be at much greater risk as CEO if there were a small number of large shareholders. They could, in theory, band together against him to make a change. So I'd expect that as part of the deal, he'd make arrangements via voting rights to be in control. So your current 1 vote public shares may become 0 vote private shares. Or, his private shares may carry 10 votes each. On the other hand... he seems to be somewhat an idealist and may reason that his performance will stand on its own merits. I.e., the shareholders would be right oust him if they felt that was the right course of action. Will be interesting to see how this plays out.

11thEarlOfMar 8y ago

Google has three classes of shares: A, B and C. A shares get one vote, C shares get none and B shares get 10 votes. Brin, Page, Schmidt own all the B shares. [1] For FB, Zuck holds a class of shares where each of his counts as 10 vs. the common shares.[2] [1] https://www.investopedia.com/articles/markets/052215/goog-or-googl-which-google-should-you-buy.asp https://www.investopedia.com/articles/markets/052215/goog-or... [2] https://www.cnbc.com/2018/03/20/shareholders-wont-force-zuckerbergs-hand-in-facebook-management.html https://www.cnbc.com/2018/03/20/shareholders-wont-force-zuck...

peeters 8y ago
Hmm, interesting. I thought we were just talking about voting shares. Musk has said current shareholders would be able to hold on to their shares. Do you think behind that statement he implied "but will lose voting status"?
- 11thEarlOfMar 8y ago
  Lose or reduce. Musk would be at much greater risk as CEO if there were a small number of large shareholders. They could, in theory, band together against him to make a change. So I'd expect that as part of the deal, he'd make arrangements via voting rights to be in control. So your current 1 vote public shares may become 0 vote private shares. Or, his private shares may carry 10 votes each. On the other hand... he seems to be somewhat an idealist and may reason that his performance will stand on its own merits. I.e., the shareholders would be right oust him if they felt that was the right course of action. Will be interesting to see how this plays out.