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If he didn't create $450B in value, then his pay package isn't $56B as everyone is quoting. Those are valued in the same "hype-dollars." The "He didn't do anyt

• shafyy 2y ago
  The market cap of a company is not real money. However, owning a significant share of the shares can help rich people get real money without any real downsides. For example, Musk (any most billionaires) use their stock as collateral and take out super low interest loans against that stock. They don't pay any income tax on this loan, since it's not income. On the contrary, they can deduct the interest rate payments from their tax bill. This money they then use to buy property and other wealth. So, they make more money with not really their money (debt) and they use all tricks in the book to minimize their tax burden - which is much lower compared to (relatively speaking) low and middle class folks who earn most of their money through income and pay high income taxes. So, you see, even though his pay package is in Tesla stock and its value therefore "not real", he uses it to get very real cash using it. In finance this is called "leverage".
  • bravetraveler 2y ago
    In fact, things get rather bad when that money is realized at once. Hype is accurate.
  • smsm42 2y ago
    Nobody pays ang income tax on loans, it's not unique to Musk. And loans need to be returned, usually.