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The challenge for Tesla and Elon is that I don't see the exit strategy? If Elon sells off his Tesla shares in any sizable quantity, it seems the stock would dro

The challenge for Tesla and Elon is that I don't see the exit strategy? If Elon sells off his Tesla shares in any sizable quantity, it seems the stock would drop massively. If Elon steps down his involvement or passed away, same thing. So it seems it needs to keep on the show until Tesla can actually sustain its value somehow through normal business operations.

root_axis 6y ago
Fake it till you make it.
zaptheimpaler 6y ago
Execs in any public company routinely sell shares at a pre-determined rate every quarter. Execs besides Elon have been selling as part of the plan, and company employees are free to sell as well. According to SEC filings, Elon himself hasn't sold any recently, but he owns 20% of Tesla, worth about $10B today. Even if Tesla drops 10x, he would have $100M worth of shares. Not to mention all his other assets, shares in SpaceX etc. He has more money than he will ever need.
- differentView 6y ago
  > but he owns 20% of Tesla, worth about $10B today. Tesla's market cap is $764.255B. 20% of that is $152.851B. https://finance.yahoo.com/quote/TSLA/ https://finance.yahoo.com/quote/TSLA/
  - zaptheimpaler 6y ago
    Thanks, that number did seem a little off to me :)
- didibus 6y ago
  > He has more money than he will ever need Sure, he also probably takes a salary for his role at the companies as well. Still, there's a reason he continues to work I'd assume? It might be he truly wants to get electric car on the road, or it could be he wants more money. In both cases you could ask: "Can Tesla survive his inevitable exit?" So ignoring Elon's motivations here, as maybe he just has fun running Tesla, who knows, still the question is relevant to other investors into the Tesla stock, and for Tesla's employees.
imtringued 6y ago
Knowing Elon he probably already planned on a way to exit the stock in a way that lets him reenter at the correct market valuation.

root_axis 6y ago

Fake it till you make it.

zaptheimpaler 6y ago

Execs in any public company routinely sell shares at a pre-determined rate every quarter. Execs besides Elon have been selling as part of the plan, and company employees are free to sell as well. According to SEC filings, Elon himself hasn't sold any recently, but he owns 20% of Tesla, worth about $10B today. Even if Tesla drops 10x, he would have $100M worth of shares. Not to mention all his other assets, shares in SpaceX etc. He has more money than he will ever need.

differentView 6y ago
> but he owns 20% of Tesla, worth about $10B today. Tesla's market cap is $764.255B. 20% of that is $152.851B. https://finance.yahoo.com/quote/TSLA/ https://finance.yahoo.com/quote/TSLA/
- zaptheimpaler 6y ago
  Thanks, that number did seem a little off to me :)
didibus 6y ago
> He has more money than he will ever need Sure, he also probably takes a salary for his role at the companies as well. Still, there's a reason he continues to work I'd assume? It might be he truly wants to get electric car on the road, or it could be he wants more money. In both cases you could ask: "Can Tesla survive his inevitable exit?" So ignoring Elon's motivations here, as maybe he just has fun running Tesla, who knows, still the question is relevant to other investors into the Tesla stock, and for Tesla's employees.

imtringued 6y ago

Knowing Elon he probably already planned on a way to exit the stock in a way that lets him reenter at the correct market valuation.