** Trump calls Tesla boycott ‘illegal’ and says he’s buying one to support Musk**
This problem has a pretty simple solution. Tesla’s BOD argued that Elon couldn’t remain focused on Tesla unless he got a gargantuan stock bonus. The shareholders agreed and voted to dilute their own shares so Elon would be motivated to do his magic for Tesla.
Well, Elon is clearly not focused on Tesla these days. So what shareholders need to do is agree to dilute their shares even more in the hopes the sniff of money will bring Elon back. I mean, it didn’t work last time, but there is always hope, right?
I would be really be interested to hear how much dilution The Captain would be willing to accept to tighten Elon’s focus. Maybe 50%? (in addition to the TSLA decline in stock price since the election.)
intercst
Tesla is several orders of magnitude smaller than the US government. I think Trump could effectively run Tesla and Musk could take the big boy’s seat in the oval office.
Meanwhile there are two very offensive spokes people for the firm.
So unfair - Elon single-handedly doubled the share price within a few weeks after election day.
Unfortunately, the ignorant market halved it since.
Wrong way to formulate the question. Since the answer is, “It depends” the question should have been, “Would you vote for the pay package?” I’ll answer that question.
Since I was not a shareholder when the pay package was originally voted on, I did not vote. More than likely, I would have voted against. When the vote came up again after the Delaware trial, I voted for, in part to go against the biased judge. Truth be told, my vote hardly counts. When I dislike the business or management I sell the stock, end of story. You don’t like the pay package? Sell the stock!
A little bit of background. I started investing in EVs in late 2010
and quit in May 2015 when the company was going nowhere. I learned a lot about the industry and between options and trading the stock got an IRR of 43.2%.Not too shabby.
During that time I watched a Tesla battery swapping event. It was my first contact with Elon Musk and I dismissed him as a snake oil salesman. Years went by and I got to watch Tesla’s September 2020 Battery Day. A week later I started accumulating TSLA stock. Battery Day and news of incumbents getting into the EV business convinced me that EVs had Crossed the Chasm. I like cars and driving. As a Tesla shareholder I learned a lot about Elon Musk and I judged him based on my experience in business and as a management consultant. He got top grades! Tesla’s business plan also got top grades. Maybe Americans can sabotage it. It would be a darn shame.
Now I can answer your original question:
A single number cannot answer. The answer needs two numbers. Let’s use pizzas as the chalkboard. If the pizza is twice as large but the slices half the size, twice in number no gain, no loss.
The Captain
Ahhh, but if the pizza is twice as large do you credit the gain in size to the cook, the server, the manager, or the owner?
If you were asked to pay $40 for that pizza instead of $20, who would you most likely give that extra $20 if given the choice?
I don’t ask that because I think there is a right or wrong answer, but I also think most would prefer to spread that extra $20 around and would likely give less to the owner than the cook or the server.
I got my promotions because I was good at my job.
Sales people working on commission would get some of it. Workers would get raises by merit. Owners would get whatever remains. Workers don’t run the risk of losing the business like the owner does.
Participation trophies? Their choice, not mine. I loved working at IBM but sales reps were making much more than I was as a systems analyst who did much of the work for them so I asked for a raise. Management replied, “If you want sales rep pay, become a sales rep.” I said, “OK.” IBM sent me off to Cuernavaca, Mexico to their Spanish language sales school. I had a ball. On the way there I was in New Orleans the day Kennedy was shot.
Want as much money as the owner, become an owner.
The Captain
Ahhh, but in my example, as well in the case of Tesla, you are the owner. All shareholders are owners.
Musk is the Manager. I don’t see you stating that the Manager should get a massive increase in ownership.
By now stock options are a standard form of paying employees, specially at Tesla. What they do with their pay is their business, not mine. The next gotcha ends the conversation. Also, you didn’t understand my reply. Let me repeat:
A manager is a WORKER. A president is a public SERVANT.
The Captain
Violent left lunatics are vandalizing Tesla superchargers, cars and showrooms.
This is terrorism and is meant to hurt Tesla owners, customers and investors
Choices have consequences. Live–and die–with them.