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As I understand it, Musk has worked for years without getting paid. The "paycheck" you refer to is actually the OPTION to buy stock at an agreed upon price. So
by daly 2y ago
As I understand it, Musk has worked for years without getting paid. The "paycheck" you refer to is actually the OPTION to buy stock at an agreed upon price. So he has to pay to get paid. That set of stock options required him to lead the company to massive profit, otherwise he doesn't get the stock options. He did that. Having fulfilled the conditions of the agreement, vest his options.
If Musk leaves then the Tesla company will become "corporate", meaning they will only make decisions that appear to improve the next quarterly report. The thing that keeps Tesla ahead of everyone else involves massively risky decisions that require long-term goals, such as building out a charging network, moving away from the traditional linear conveyor construction for car factories, "inventing" giga-casting to eliminate parts, steps, and vendors, improving battery technology, use Ethernet rather than individual CANBUS wires, move to a 48 volt architecture to reduce copper use, etc.
Rest assured that a "corporate Tesla" will die. I suspect that's the whole point of this exercise. All of the major car companies need Tesla to go away because they can't compete. Only Tesla and BYD make a profit on each EV sold. You have to sell over 50,000 EVs to break even and the majors can't seem to do that. So the next best thing is to kill off Tesla.
Musk realized that you don't need a 500 person team working on chargers. Why have a whole "charger research team" if you can already make the best, lowest-cost to build, lowest-cost to install, chargers? You only need a small factory and an install team. Oh, and as for laying off 500 people, do you think a Union would let Tesla recover the nearly 1-billion dollars a year it costs to employ 500 people doing nothing valuable?
Musk doesn't need Tesla but Tesla needs Musk.
- peutetre 2y ago> Only Tesla and BYD make a profit on each EV sold. It doesn't matter if they're selling EVs or not. They're car companies. They sell cars. BMW and Mercedes both sell more cars per year and both have higher profit per vehicle than Tesla: https://fiatgroupworld.com/2024/04/07/ferrari-makes-even-more-money-in-2023/ https://fiatgroupworld.com/2024/04/07/ferrari-makes-even-mor... Ferrari makes the most per vehicle but they don't sell many cars. Toyota, Hyundai, Subaru, Kia, Stellantis, JLR, BMW, Mercedes, Porsche, and Ferrari all had better operating margins than Tesla last year.
- pjfin123 2y agoI think the pay package probably isn't in shareholders value at this point. It's a very large dilution and they've already gotten the value of Musk working for free for years. However, it's totally unreasonable that his options compensation package is getting cancelled after he already fulfilled his end of the contract. I guess the takeaway is be careful incorporating in Delaware.
- nocoiner 2y agoTruly, if there’s anyone who values the sanctity of Delaware contract law, it is surely Elon Musk.