Elon Musk: Judge blocks 'unfathomable' $56bn Tesla pay deal
The lawsuit was filed by a shareholder who argued that it was an inappropriate overpayment.
www.bbc.com
Not really news at all if you pay attention.
Musk Overpaid
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www.bbc.com
Not really news at all if you pay attention.
Owen Lucas
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How much would the stock tank if Elon left the company and did his own thing? Maybe paying him the $56B might be cheaper.
It’s already down 50% and going lower still.
The value of the company slashed in half from its high and I’m betting sooner or later down another 50%
All with Musk as CEO.
No right or wrong just my thoughts.
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The shareholder should put his money where his mouth is and demonstrate he can do a 1/4 of what Musk can do.
At the moment the trajectory is down, paying Musk more imo is not going to help. The same can be said for the high flying tech stocks that are taking it on the chin this morning. Paying their top brass isn't going to help them either, they might have to grow into their lofty valuations.
This is not an Electric Vehicle topic. Moved to General and Off Topic, where there are already threads on Tesla stock.
Who was the CEO when it reached those heights?
The same one who drove it down 50% and failed to live up to his sales projections in 2023.
It was blind trust of many who lost a fortune believing him. Not that I care, that is their fault for buying a stock over 60 times earnings in a field of which its completion is at 6 times earnings.
Im not saying good or bad, just answering your question from another point of view. Its certainly a disaster for many that paid more then $225, $250, $300 or $350 for stock in Tesla and a disaster of an earnings announcement by Musk himself just last week saying this year is going to be worse.
I hope IF it goes to the Delaware Supreme Court the ruling will stand. The Board of Directors are supposed to represent the shareholders and are elected by those shareholders and with some board members being long time friends of Musk. Little bit of a conflict there.
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Rhetorical question.
Elon Musk has been CEO since 2008. He was there for the delivery of the first Roadster. He’s the longest serving CEO in the car business.
With him as CEO, Tesla has gone from delivering 0 cars per year to 1.8 million.
Tesla is now a household name (and BITOG staple).
The stock has been volatile, but the company has gone from being worth nothing, to being worth $600 billion, after this drop, with sales revenue of over $80 billion last year.
All with Musk as CEO.
If you’re going to point to stock performance of the last couple of weeks, and lay that at his feet, then it’s only fair to point to the build up of the company from nothing, to where it is, because that was him, too.
He has sold a lot more electric cars than anyone in history. But as electric cars move from being a novelty to a commodity, Tesla has not really adapted. The early brand advantage, and admittedly a great idea by Elon, was the subsidized chargers that would only charge Tesla. Now that isn't helping them as those installed chargers will be converted to charge any car brand, and numerous third parties are moving into the charging market.
Last couple weeks? What if you were an investor even two years ago, you would have lost over 40% of your entire investment so far.
The build up of the company is only built on speculation for a profitable future by spec investors. The company worth is nothing close to what the buyers of its stock value it at.
Meaning, Tesla only started making money 2 years ago and the value of the company at the time placed on it by speculators was close to 100 times its actual earnings, so it's the investors speculation NOT actual profits from the company because the industry they are in is manufacturing vehicles and the P/Es for those Profitable companies were not 100 times earnings like Tesla but GM / Toyota around 10 times earnings at the most, at the time.
So all speculation based on the CEOs comments and non institutional investors. That one day, Tesla will somehow catch up and surpass. Maybe they will with the Robots and Electric storage one day, but EV's ? All speculation so far.
Dont take my post to think speculation is bad.
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I owned TSLA for a while, made a bit of money, got out before the split. I wasn’t comfortable with a P/E as astronomical as TSLA had at the time. I preferred not to ride the wave. I was happy with the modest profit and the money is now invested elsewhere.
There is a thread about TSLA stock price, however, this thread is about CEO compensation.
So, if we are talking about his performance as CEO, it’s only partly tied to stock price, and the bottom line is that he took the company from nothing, to over a million sales a year. Like it, or not, the Company is here to stay.
That is a successful CEO. A lot more successful than many other start up attempts in our lifetimes.
Anyone remember John DeLorean?
I agree it's here to stay but if they dont do something more than cars it will be priced in the same P/E ratio of the industry which is roughly 6 to 18 times earnings. Its just a car.
Which is why I got out…when the hype is gone…the valuation returns to normal. Still a big company, but with a stock at a price that makes sense. A price that isn’t driven by FOMO or hype.
Fundamentally, I am a value investor. I have made some money off growth stocks, but the ones I keep tend to be value stocks.
But that’s a discussion for the stock price thread, and I am certain that @JeffKeryk and I stand apart on the TSLA valuation, but we probably agree on the position of the company in the market.
They sell a lot of cars these days, and Elon has been driving since, basically, day one.
Yes, I too look at valuations, I am at a point in my life where I dont need the "holy grail" or risks associated with it. Dont misunderstand me! Sure I would love to stumble onto something but it has to make sense to me.
I look at market valuation too. Including Tesla's recent drop, with dumb ol' Elon at the helm, Tesla is worth more than what, the next 6 or 7 companies combined?
Based on the numbers, my question is, what is wrong with all those other companies? Just a question...
Based on the numbers, my question is, what is wrong with all those other companies? Just a question...
The investor answer: they are correctly valued.
Hype is pervasive in our society, and on Wall Street.
A great many things are ridiculously overvalued.
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Back in the day when Steve Jobs ran Apple everyone worshiped him and it was thought that Steve Jobs = Apple. Nearly a decade and a half later, Apple is doing better than it ever did under Jobs. Sure, Jobs helped bring the company back from the brink, but he didn't do it alone, by any means. He had his peak at Apple, and a fair share of tech scandals. After Tim Cook took the reigns, everything quieted down, and Apple really took off.
The same goes for Tesla. Elon Musk is the "sensationalist" type of CEO, who markets the products by drawing attention to him and the company. It would only hurt Tesla temporarily if he'd left, because at that point, the products would have to stand on their own merits, without being hyped up by a sensationalist CEO. Not every CEO can drum up attention like Elon Musk, and not every CEO wants to. Most CEOs quietly focus on delivering decent products to customers while bringing in money for shareholders. Maybe it would be a good thing if Elon Musk leaves Tesla, as the quality of their vehicles might actually improve.
All CEO's are overpaid IMO. What should happen is all those discounted stock options should be subject to immediate SS tax so the younger generations won't need to worry about it remaining solvent.
Unfortunately we live in a time when some judge with a deep seated bias and disregard for the law can decide unfavorably against people of high profile, whether businessmen like Musk or politicians that they don't like. And they do this knowing their decisions will be overturned but are content that they "made a statement" and cause the defendants to spend millions of dollars on lawyers over a long period of time.
Ptui.
Ptui.
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