That's the amount of money Musk really worked hard for. Receiving no pay and taking a company from 59B to over 600B is a deal you wouldn't want to take. But he did, and met up with expectations.
Tesla is so overvalued that the increase in share value isnt based on any fundamentals thus 55 billion payout is ridiculously overblown and certainly against the interest of shareholders.
@@samsonsoturian6013 So? Down more than 60% from the high. Falling sales. Falling profits. Musk is a liability now. He just managed to pump the stock like a ponzi at the time.
@@matiashamalainen7965 No, he doesn't. This is employee compensation in lieu of a salary. The shares come from a new issuance of shares (another option would be treasury shares, but Tesla doesn't have treasury shares for this). That's where all the concern about stock dilution comes from.
@@lukevo6485CT *had* 2 million reservations. It has a ton of cancellations. Especially given that the price of the CT is double what the price was when it debuted in 2019 and the range is significantly lower. Tesla will sell quite a few CTs, but it won’t be anywhere near 2 million anytime soon.
That's not how stock based compensation works. Paying with stock options makes the books look better because it is not an operating expense, but the pay is at shareholder expense.
In Charlotte NC Tesla's aren't selling. If you go down independence Blvd you will see multiple lots filled with hundreds of Tesla's. I've been going out there and recording and it's the same cars. They're not moving and they're only adding on to the stock pile. Yeah Tesla is definitely about to collapse.
@@samsonsoturian6013 maybe the will build robotaxis and don’t sell them, so after 10 years the current stockprice is justified by the massive income they will have /s
@@samsonsoturian6013 You act like a completely shifting the manufacturing process to designing gas engines is an easy process. They're 10x more likely to go bankrupt at this rate.
Maybe that’s been the play all along. Just make outlandish claims to raise the stock price purely to hit those targets he set that would unlock this $55bil
Bro valiantly trying to pay off the principal of the twitter loan to reduce his interest rates Edit: Got my first musk fanboy bait in the reply. Clicking through their name and seeing all their replies is something to be told.
Not how it works... You don't work in this industry. You're talking about a loan in a traditional sense. He got his loan from private equity. Our terms are way different. It's funny, I lived in the real world with you. But once you cross into the financial world, lol. You can't explain it to normal people. The Twitter loan is a lot of money to you... It's not real money lol. The we work ceo got funding again. You don't understand our game at all.
@@Tential1 Private equity firms typically don't "lend money". They're not a bank. Private equity firms buy shares (usually a majority) in a business and thus have equity in said business and voting rights. All this talk that "Private equity firms are financing Twitter" is nonsense. What Musk has done is borrow private capital. That capital has most likely come from mutual funds and venture capital financiers and undisclosed private lenders. The money is most certainly real, albeit in the digital realm. It's also most likely very expensive money with interest rates well above and beyond those you will get at the bank. Investors in mutual funds and venture capital funds do like to get paid handsomely for the risk that they are taking, after all. Hopefully, with this new found knowledge to you, you will be able to pursue a more profitable career in your private equity firm.
Lol that dudes an absolute troll. Doesn’t say anything that makes sense. “Numbers have extra zeros that means you don’t understand” 😂 yes they are different. But besides equity of said business being used as collateral & it usually being a shorter time frame for return of principal such as 1-5 years.
I don't think you understand corporate finance. Instead of paying a CEO millions of dollars per month, rather pay him nothing. That excess profit in short term can be used to fuel organic/inorganic growth. The BoD sets benchmarks that a CEO must reach in order to get a bonus/compensation for the work he has done. The BoD gave Elon ridiculous benchmarks that they, neither analysts thought he'd achieve (Tesla reaching 1 trillion in market as an example). But he led the company and surpassed all of the expectations actually by a big margin. He isn't being fairly compensated for the work he has done.
@@Edison.m3806 This why we keep getting Enron, the 2008 crisis, etc. Compensation packages tied to the price of a stock at a specific time just rewards overpromising and fraud, they don't have to be here for the fallout when their lies get exposed.
FDD will never exist. Anyone that thinks otherwise doesn't understand machine learning and what it can and cannot do and how that overlays on accident prediction. Captcha cannot even perfectly identify if a car exists in still photograph, despite virtually infinite photos of vehicles to input. @@taylorc2542
@@taylorc2542 I hope it does, but the track record of "we can do it now" and 5 years later still nothing is just to big to ignore. And a company that has it´s value based by a large amount on hype, which is volatile, is surely not going to benefit from these kind of promises. I mean the new roadster was supposed to be "made right now" years ago.
You think Elon Musk would do badly if he stepped down?! 😂😂😂 ... Let's not forget that guy is Billionaire. And he started Tesla and SpaceX when he had LESS than 100Million
@@ArtimusDragonbecause it was actually approved years ago, it was performance based compensation, the most ambitious one in history, all goals were reached Now it's time to pay up
@PhonkEcho The price went up because simps bought all his lies. Now people are getting smarter and the price is going down. He is not a genius, an engineer, or scientist. He is a scam artists.
The pay package was a scam on the shareholders to begin with, they were already forecasting internally to meet 3-4 of those targets without him doing anything else. Just that would have been a ton of money, the rest was gravy for him
@@4evertrue830He already technically has the most control over Tesla He owns the most shares AND the board of directors is filled with families and friends That makes his control even higher
OK you create an ev company from scratch that's profitable. No one else in the world is doing it.... But he's doing it, and selling an idiotic vehicle, and he's still profitable.... Lol. It's hilarious seeing how delusional people are. Like, you can hate someone but profit is profit.... Meanwhile, Ford, GM, etc. All lose money in the same industry, and you say all of those people are smarter than the dude making money. It's the weirdest thing I've ever seen.
For Teslavoters to dilute their own shares by 10% is absolutely insane. Especially considering the fact that the chinese automakers are making incredible cars. Tesla share price will def take a hit within 2-3 years.
Other view, if he took my 100€ investment and made it into 1200€ aka a 1100% gain. I dont mind him diluting me down to 1080€ again. Honestly thats a good deal, for a 10 year gain.
As always greedy management end up destroying their companies as they will earn the hatred of the public and their own employees as well in the long run.
greedy? his negotiated packaged tied his compensation purely on performance. tesla was worth 55-60 bil back then, he get 1% per 1x extra value he bring to the company, dude got its value to go 10x, ya he definitely deserves 10%, u guys tip your waitress more then that for bringing your food. but someone 10x your value and 10% is to much now... lmao
He met the performance targets he performed as he said he would, and therefore should be compensated. Accordingly, you do failed to look at this angle do you do you look at present day this is for something that took place in the past.
After doing a pretty solid job getting Tesla up and running along with the supercharger network, the man has gone off the deep end mentally. Every additional $billion he gets is like feeding him mercury.
He overpaid for twitter. He literally paid the meme price of $42.0 per share for it. That company was going bankrupt. According to the twitter balance sheets, it had enough cash for 1 year max. He could have bought it for 50% discount. but it's also weird how the news is reporting on it as if he's crazy and how his pay package is 55bn. It isn't. It's a stock option and it was $55bn back when the stock was high. Less than half now. Also who knows how much his pay package would be. It's as if he either gets the full amount or works for free. That doesn't make sense either.
@@SourDonut99that package is still pretty crazy. Compare that to any other CEOs pay out. However, the main issue with it was the lack of disclosures given by the board on partiality and how musk has threatened to take company property to start his own private venture. If the board made the proper disclosures and Elon didn't threaten to take from the company then this wouldn't have been an issue. It's also interesting how you say that he works for free. He has already cashed out more stock $ then the company has ever made in net profit. He's literally earned more than the company and that's after breaking so many laws and making fun of the SEC. If shareholders are unhappy with his actions and disagree then I think it's fair to cancel his new payout. After that is completed they can renegotiate a new payout structure that the shareholders are properly disclosed on after Elon pays whatever nominal amount the court charges him for his actions
Looked it up because I was curious. Tim Cook is the closest CEO in terms of yearly compensation. At $770 million a year. Which is a far cry from Elons $2.2 billion a year BEFORE this current package@@SourDonut99
No one in history has done what Musk has done anyone think they can do better? NASA can't do better. No one has his vision. He is #1 in several different fields. Oh no he's used drugs!@!! Oh my! are the satellites crashing? SELL your car because you don't like his politics? World of soft belly losers
Yeh....That is why Twitter AI was valued at 18 Billion..... Wow, is that what you call a dumpster fire.....LOL. I am sure you laugh at your stock portfolio.... My Tesla shares are up 1000%.
@@markmercieca5569 That is fundraising for a new company, not Twitter. I confess to not being certain of the legality of taking that funding and paying off Twitter's debt, but I'd be surprised if the answer was "sure, that's fine."
It's obvious it's not worth it's stock price. If it will grow enough to be worth it is everyone's guess. But it doesn't seem more likely now than three years ago.
Tesla has been wildly overvalued for well over a decade and the bubble has just kept expanding for that entire time. I wouldn't short tesla because there are simply too many irrational cult members to prop it up. As the saying goes, the market for a stock can remain irrational longer than you can remain solvent.
He doesn't have a leg to stand on and the company would do better without him. From what I can see the share price has been artificially buoyed by lies. Full self driving, range, battery swap, electric trucks, robotaxi, roadster,cybertruck. And artificially inflated carbon credits. Fire him. The SEC need to investigate him and sieze him proceeds of crime.
At some point I hope that people in general (and shareholders specifically) realise that the value of a company comes from the people who work there and not disproportionately the one person leading it
The way stocks are, this seems to usually be at the moment a company goes bankrupt due to over-focusing on share value instead of actual profit. I point at We Work as an example.
Tesla would not be a great EV car company today if Elon did not take the risk to start it and nurture it in the early years. It was his brain child from the beginning. You have to at least give him that credit.
@@4evertrue830 Actually, looking into the history of Tesla, you don't. It was not his brain child. It is fair to give him some credit, his money was critical, but to say it was his brain child is simply incorrect. The company was founded with the idea for electric cars before Musk was involved in any way.
Tesla made a lot of their employees millionaires, don't forget that. And even if not, everybody is free to leave if other companies have more to offer.
@@jerome8660 "You can just quit" isn't a shining argument. It's applicable to every company, and flawed due to factors such as how health insurance works, the general economy, and potentially non-compete clauses (though those are no longer legal). A good argument would be about excellent working conditions and job security, but I imagine that's not an option for defending Tesla.
Musk is not very smart in the academic sense, but he is a genius at making money with bs. It's that simple. He's a modern day snake oil salesman, and that's probably because there is a fool born every minute. The current AI bubble is another good example of people's stupidity and how easy they will part with their money for hype. No one should be allowed to have more than 10 million dollars a year. Give me a good reason why anyone can't live comfortably on that amount of money. And why do you want to have such a vulgar amount of money? Maybe they're compensation for something.
He started PayPal with friends and successfully built it up into a great company before leaving. He achieved same in Tesla and built it into a multibillion $dollar company. He started Space X and it is also worth tens of $billions of dollars. So, how is he a snake oil salesman? Why can't you make it make sense man..smh.
No one needs to explain to you, a nobody why they deserve the money THEY made, building THEIR company. And the same would apply if you built your own company
Switch to 10 mil max / year would cement Warren Buffet, Blackrock/Larry Fink, and other billionaires into permanent billionaire overlords and none of the plebs would ever legally obtain the same wealth again. Pretty stupid idea. That's what we call "pulling up the ladder".
@PhonkEcho It wasn't even his company. He just bought in early and forced the original owners out. He consistently made poor decisions, including the Cybertruck, and tons of empty promises that he either doesn't fulfill or fulfills 5+ years later. Elon has been propped up by worldwide media calling him a genius and saying he's saving the world, but he hasn't come through on most of what he's claimed he'd do.
@@markmercieca5569 maddoff was also a pretty swell dude until some guy checked the numbers. peak share value of 2020, was hugely based on the promises of robotaxis and semis more efficient than rail, you just had to wait until next year. his objectives were achieved through lies yet he wants 18% to keep lying. tesla is nothing more than an electric car manufacturer with side hustles
If I still held Tesla, I'd be out like a shot from a rifle at this proposal. A guaranteed loss of 10% overnight on stock that has no yield. And didn't these people read the Delaware court ruling? Lunacy.
@@markmercieca5569 and that is a bubble. That price is based on hype and not much else. You're like those people bragging about how valuable their pictures of monkeys were a couple years ago.
This is the kind of pay package that should concern the US govt and should be heavily taxed by the govt. No super rich person, who feels they deserve this kind of performance pay package should avoid paying their taxes no matter what. 😤
1:51 why lie? The “performance based targets” were so easily attainable it was near impossible not to reach the targets. THAT was the problem. The board that approved this is supposed to be independent and support ALL of the shareholders. But they were in fact placed there so they would agree to do what musk wants at every opportunity. And no, he was NOT doing the work with no compensation. In fact he used to advertise that he makes no money - just stock. He was given tons of stock options which were also generous. And he sold a lot of it. And made billions. So no - he wasn’t missing any compensation.
The same so called sensible board that invested in Tesla when the going was so good, they all became filthy rich. Now they want to go back on their word to compensate him? That is a stab in the back in my opinion.
@@eternaldarkness3139 You say he is so incompetent? Why say so now after most of these board directors have become so filthy rich off him at Tesla and his other companies over many years? He deserves his money dude.
Call his bluff, he's too deep financially into his value through Tesla to walk away. he'd just spend MORE time on X/Twitter complaining about "wOrkInG fOr frEe" 🙄
@@4evertrue830 well that's kind of the problem, Tesla isn't going to pay him the money. The shareholders are. They are going to go Poof and create 55 billion in shares, which dilutes everyone else's shares. He's just straight out taking this money from all the other shareholders.
My husband just bought a house with one of his girlfriends, I want to transfer a bunch of money from our joint account to his personal account to keep him faithful
That's a fantastic idea. But before you do, make sure that he's still committed to the relationship that he has with you and that he won't run away with the washer and dryer and do his own laundry with it. And also, make sure that he still has the biggest say in how the house that you're living in is run.
I am not an Elon musk fan, but the incentive-based nature of the deal is the reason why I think he should earn it. Now separately, I think that's gross overpayment and part of the reason that the economy is going to continue to destroy regular people, but that's a different conversation.
I had an interest in Tesla. I got out three years ago. One of the reasons was that unlike every other equity that I own, the shareholders are barmy. They have no idea about investing. Too many of them are first time investors and too many hold Tesla as their only investment. It's Dunning Krueger syndrome en masse. Who in the world votes for a 10% dilution of their net worth on stocks that don't even have yield? It's lunacy.
being coerced to work excessive overtime for rather moderate wages while the big boss himself works part time and demands 55 billion with a "B" must really grate on a whole lot of workers!
So basically he's owed $55 billion because he used his personality to drove up the price of the company's stock, to the point that market capitalization exceeds yearly profits by a factor of 30... How has this worked out for GameStop?
I mean, they're still struggling, but they used that whole nonsense situation to raise capital and not die, so I'd say it went relatively well for them. It's not sustainable without genuine major change and legitimate profit, however, and that's definitely not the situation any investor wants Tesla in.
I guess that contracts don't matter. A judge can just arbitrarily rule that (a board approved, shareholder approved, crazy targeted (at the time) all or nothing deal, which he managed to hit every target, and make all of his shareholders rich in the process) pay package is somehow unfair to shareholders and she can take away his already earned options. Clown show partisan activist judges can steal your money retroactively. This should be a red flag to anyone running a business. You can't predict the future. He took a major risk with the potential to earn nothing if he failed. He succeeded. You sit here two years later and say "oh the stock isn't still at all time highs, we should take the money away from him now. Yet I didn't hear any complaints rwo years ago when you were cashing in tesla stock after it 15x'd from 2020-2022. Totally dishonorable statement you make. No one would never do business with someone like yourself.
This is money he claims he deserves to be paid years ago, when he was deeply involved in building Tesla up, not for recent work he's doing. He should be compensated.
@@4evertrue830No he doesn’t deserve it. He lied about the board members being objective and some of the metrics that elon needed to hit were already on pace to have been achieved whether he was CEO or not.
Is it fair to say that the August unveiling of the robotaxi will be make or break for Tesla? There isn’t a snowman’s chance in hell he will have anything resembling what he promised ready.
That’s not how the game is played. He will unveil some prototype robot taxi with self driving make up fake release dates that’s 2 year in the future, then delay that by another 4-8 years. In the mean time all the fan boys and analysts will generate hype on how big this future revenue stream will be etc, to prop up the stock and obfuscate the stock is priced like a startup but actually losing sales / revenue. He played this game many times, look at fsd…semi truck…25k ev and on and on. Basically fake until you make it, if that fails, invent some new carrot to dangle in front of the fan boys to continue prop up the stock
@@rossamullen5918 he's been claiming he's figured out FSD every year for the last decade. The guy is a complete con man. He should be prosecuted for fraud at this point
It was a small package that became big because he succeeded, its the best precedence considering other ceos get payouts regardless of performance, inspite of it really.
@@REgamesplayerBesides, the company does not necessarily have to pay him the lump sum. Payment can be spread over a period of time, say 5 or 10yrs which will make it much easier for them.
@@taylorc2542 I think most of the criticism is coming from the lefties that don't like what he did with Twitter restoring accounts of people they had silenced.
Your contractor argument breaks down because of one factor: Tesla wants to keep an ongoing relationship with Musk. The home owner isn't anticipating an ongoing relationship with the roofer.
It makes sense for $TSLA investors to vote no. Elon is an employee, one who is both doing a bad job over the last 4 years and is providing significant PR issues and brand risk to the company. He isn’t doing his job. Now there is an opportunity to adjust his pay adequately to his contributions. Voting no isn’t a vote to not pay him at all, it’s an opportunity to adjust the pay package to be reasonable to save investors money, and show Elon that he can’t just do whatever he wants and expect to still get whatever he wants. Voting no is a wise move financially
"What would motivate him," Tesla's stock price. It's most of his wealth. It's what motivates a lot of CEOs in his position with huge stakes in the company.
@Wall Street Millennial What Telsa's Board, shareholders and Musk agreed to, was that if he could make the company grow by over 1100% and other reach other metrics, the company would allow him to buy around 9% of the outstanding shares at a fixed price. What many people fail to understand, is that Elon Musk would have to hand over $7 Billiion to Tesla, to get those shares. Some CEOs just get paid for their efforts in cash, Elon wanted a share of the company instead. After he buys those shares he would be required to hold them for 5 years, before they could be sold, to delution is not really an short term issue. This is a done deal....pay the man!!! We can bitch about his new package and hold him to the sword on that.... to me that seems to fair.
He can't dump the shares he gets for 5 years but what you don't realize is that obce he gets those shares he can dump the one's he already has, so he can cash out again at the overvalued share price. He does not have to commit for 5 years like the fanboys assume
@@michoacan55 According to your logic he can dump the shares he currently has now!!! The 2018 shares, don't affect what he does with the shares he is currently holding. With the 2018 shares he would only be able to cash those out, 5 years after he has bought them. In 5 years, who knows what the share price will be, probably a lot higher... would be my guess. I do see your point, but he has to commit the 2018 shares options for 5 years after purchase. Fanboys are correct, he will be stuck with 2018 shares for a minimum of 5 years. What he does with his current holdings is not affected by 2018 options and it is not a material issue at this moment, since this is only about the previous deal. We are talking about a deal that the board, shareholders and Musk agreed to...nothing else.
As someone who shorted Tesla, I hope the vote succeeds! Not only have his antics made me money by tanking the stock price, if he gets those share options he further dillutes the share price, thereby making me more xD
You say the share price is down in the past 12 months … it is still up 10x what it was in 2018 when the options were issued. That growth for a blue of blue chip stock is amazing. I am first to call out greedy executive deals but this one is unfair to Musk. The options were issued in 2018 and that was the value. Shareholders and Musk hit powerball making between 10-20X. He deserves the options that were voted by shareholders in 2018z
I think many people share your closing sentiment. Like you I do not and have not owned a Tesla vehicle nor Tesla stock. But seeing him have a public meltdown would be priceless.
@@stuiley424 I’m guessing in your head that sounded clever😂. Musk said he wants to take a million people to Mars, it’s total bs. The guy lives in a fantasy world, he really needs to dial back on the pharmaceuticals.
@@tatata1543 going to the moon was science fiction, until it wasn’t. You do you dope but he’s been a lot more successful than you will probably ever be, even if he does drugs or not.😂
I voted FOR and I voted FOR again. I bought Tesla shares with my hard earned savings only because of Elon Musk. No corrupt judge and greedy lawyers will rob Elon Musk and Tesla shareholders.
@@antoniofernandesmarchetti1097that’s because you are poor, you are not greedy and only want 550 million…then once you have 550m and used to that life, you would want 5 billion and so on…don’t kid yourself
@@antoniofernandesmarchetti1097so you're OK with setting a precedent that you can sign a contract, and be paid something, then later, a judge says, nah not fair and takes the money away. You're happy it's happening to a billionaire you don't like, but did you ever consider, that's why they chose him first? Next, it will be taking away pay from executives, and you'll cheer that. Finally, it will be you the worker, where the law was always intended to hit. And they will retroactively take back your pay. You're short sighted.
Good overview, but it fails to point out that Musk's package would be greater than the cumulative lifetime profits of Tesla. This represents $11,000 per vehicle sold, which is insane - particularly at a time when profitability is falling.
This is a two birds one stone situation, he needs to reimburse himself from the very stupid Twitter acquisition and also regain control of his crown jewel. For a “Futurist” Musk is incredibly shortsighted and delusional.
If you think Twitter is a massive issue for him, you know nothing about this industry at all. It's an industry that gave me 10m to work with when I'd never filed taxes. You don't understand how money flows here. Hell, I didn't until I worked on the other side. They gave me the money, and I didn't burn it. I didn't understand why I was supposed to burn the money until I got to the other side. You'll never get this. It's brain breaking. Money isn't what you think it is.
This comment section is just salty cope filled ignorance you people think he's going to get a check for $55 billion and the the 3 of you that realize it's stock are complaining that he wants control over his own company you people are sad
Tesla vs Elon: if you fail you get nothing. If you succeed: you also get nothing. From 2018 to now: you also get nothing. Please be the primary investor as well. You get nothing if it goes bankrupt, and it nearly did. Apple failed his car. Dyson failed. So we agree on that what you did was close to impossible. We also agree that early investors made a fortune and thanks for that, but now beat it. fun fact: It only took you 5.8k investment in 2010 to be worth a million in 2020. Give this man his money.
Just found this channel, wasn't sure what my thoughts would be but the moment you said, "I want to see it fail just because Musk will throw a public tantrum," was icing on the cake. I'm sold on subscribing just on that comment alone.
The pay package is excessive, but it was agreed to in 2018. This video failed to take into account the mocking from analysts at the time in 2018 that the milestones could never be achieved and that Musk would not receive a penny. Musk achieved the goals and therefore the agreement should stand. The earlier analogy of hiring a contractor to build a home and later having a leftwing radical judge rule that it is unenforceable because he deemed it excessive is an good example of how this is ridiculous. Both parties agreed to the contract and the contract was fulfilled, then it’s only fair that the payment be received at the agreed upon price. The what ifs and that Musk is asking or will be asking for more shares are other topics that muddy the current topic. Wall Street Millennial usually does a good job in its analysis; however they fell far short to properly explain the topic and for all the intro about trying to remain neutral, its advice at the end speaks for its overall biased reporting. I think Musk politics has created enemies from the left-wing business reporters, however they need to be professional and not let their political views taint their business reporting. Sure, there will be around a 10% dip in common shareholder stock value, but the Wall Street Millennial fails to mention that Musk has the ability to increase Tesla’s valuation far above the initial 10% short term hit. The pay package will most likely fail. If I were Musk, I would step down as CEO and sell my entire shares or do so gradually without any SEC violations. Then take the knowhow and die-hard workers that are willing to follow him into creating a private electric car company as SpaceX is structured. Then the fools that voted the package down will see their Tesla stock crater.
the deal wasn't thrown out for being excessive. It was thrown out because it wasn't negotiated legally. The board is supposed to act on behalf of investors and negotiate a pay package that is in their best interest. The Tesla board didn't do this. Musk filled it with sycophants who just do what he tells them. The evidence proved they rubber stamped the number he picked. So the size of the deal wasn't the issue, it was the fact that the board made no effort to do their duty.
@@ThatGuy-bz2in What is your definition of legally? There was a legal shareholder vote. If you seem to think that shareholders were tricked into voting yes then that is on them for not doing their own due diligence. There were plenty of analysts that ridiculed the agreement. How do you know that the board didn’t act on behalf of investors and do its duty? Some investors at the time heavy shorted the stock like Bill Gates because Tesla at one point was near the brink of going bankrupt. Musk’s leadership helped to create the Tesla valuation of today. Many shareholders have profited enormously during Musk’s tenure. Get the facts straight. I do think the amount is excessive, but that is subjective. The shareholders voted for the package in exchange for Musk achieving difficult milestones that again I remember being laughed at by the so-called business experts. Musk fulfilled his end of the bargain. I don’t see how anyone can logically not allow this compensation agreement to stand. I do think that the Judge erred. Keep in mind that we wouldn’t need supreme courts if our justice system was always correct. It has its flaws and hopefully the supreme courts makes things right.
@@RudyVon184 my definition of legally is "does it comply with the law". The board of directors has a responsibility to act on behalf of shareholders. Their job was to negotiate the pay package with musk to get the best deal possible for shareholders. We know they did not do this. It was proved at trial. There was no negotiation at all. They rubber stamped the number musk picked. The shareholders approved the deal without it being disclosed to them that the board had not done their job. Therefore, the shareholders were misled and deal is void.
@@ThatGuy-bz2in You miss the point. Let’s assume that you are correct. The Board of Directors at the time or even today are just puppets of Musk. You are correct that the Board of Directors has fiduciary duties to the preferred and common shareholders. I saw nothing indicating that they did not act on behalf of the shareholders. The 2018 compensation package contained milestones that would enormously benefit shareholders if achieved. If the milestones were not achieved, Musk gets nothing. I would argue that the Board of Directors did act on behalf of the shareholders and the stock price from 2018 to now proves it. The stock price of Tesla at the end of 2018 was $22.19. The current stock price today at 12:00pm EST is around $178. Okay, let’s talk about the compensation amount that you claim was rubberstamped, even though you stated earlier that the amount does not matter. So what? You are right, it should not matter. What matters is that a package detailing the terms of a compensation agreement was presented to the common shareholders to vote on back in 2018. To either agree or reject. The Board of Directors has no power to adopt the compensation agreement, only the common share voters. It was voted on and passed by the shareholders, not by the Board of Directors. The contract details are clearly spelled out to anyone that can read and it is available to all investor. It’s a standard contract. A contract can be voided for something illegal or if at least one party was under duress. The 2018 compensation package was not illegal and no party was under duress. I believe that the main reason this compensation package was rejected by the Judge is because of the amount, which you agree shouldn’t matter because both parties agreed. If it was only for one dollar, do you seriously think the Judge would have found this contract void? And/or for partisan politics that has started to influence our judicial system.
You can tie this up in another golden chain with another set of performance parameters but with safeguards for actual disbursement. Such as certification of the FSD for public roads in the US with the limited sensoirs they currently use.
7:28 "We dont know how involved Musk is in day to day operations" - no, but we can take an educated guess. Model 3 and Model Y - not very involved. Cybertruck - That was ALL Musk the whole way. Firing the entire supercharger team - That was Musk all the way.
This is a partisan video. Your analogy with the contractor is wrong - the right analogy would be that the contractor meets stretch targets and quadruples the value of the value of your house but a judge says you don’t have to pay him. Wouldn’t you still pay him what is a lot of money because of how much you benefited? Many would because that was the deal, and because it is fair. Shareholders benefited massively. Find another blue chip stock that grew so much over that period.
@@geoffreyhughes1 The problem is the deal was not made in good faith. The board is supposed to be independent and work for the good of the shareholders. In this case, the board is not independent. They are all friends and family of musk, so they just rubber stamp whatever he tells them to. That made the deal null and void since the shareholders were not aware how bad the board really was. So the contract doesn't need to be "honored" because it was never valid in the 1st place.
@@geoffreyhughes1 lol you're kidding right? It went to court. He lost. It was proven that the board did not act in good faith and did not do their duty to the shareholders.
" Legal Obligation" ... Are you serious? ... If you said tou would pay someone, you pay them. You don't go to a judge to try and slime away from the obligation ... After receiving the service.
It's wild, because it's short term as hell. If this can be done to Elon, then how easy will it be for employers to do it? In fact, isn't it more reasonable to think Elon is a scape goat to create a precedent to use against workers later? People aren't smart.
@@Tential1 .... For real! ... The establishment tells people to hate Elon ... And suddenly everything done to him is okay ... People don't realize that after the weapons are formed against this one man, they are actually usable on literally anyone.
@@Tential1 The court's ruling was that the board failed it fiduciary responsibilities to its shareholders as it was beholden to Musk. In the case of a publicly listed company, the shareholders are very much like "workers" anywhere else. The board has a duty to see that their interests are first and foremost. It has a duty to ensure that their "pay" isn't cut. Unfortunately, it seems that not all shareholders are aware that their net investment is going to take about a 10% hit if this package is voter approved.
@@Tential1 lol what? What precedent? The whole point is that Elon stacked the board with sycophants and used them to lie to investors to get his package passed. That is why the deal was iced. I'm not sure how workers could stack the board of directors to get paid...
Imagine if he doesn't get payed and he step down as a CEO if also start dumping his shares guess what happens to the share price. Then the real investor really could loose lots of money just out of greed.
To be fair, I want $55 billion too. First time he’s been relatable really
😂
😂
Same
😄
That's the amount of money Musk really worked hard for. Receiving no pay and taking a company from 59B to over 600B is a deal you wouldn't want to take. But he did, and met up with expectations.
_'At this point, I think I know more about _*_ponzi-scheming_*_ than anyone currently alive on Earth...'_
- The Elongated Muskrat
That was great, haha.
Tesla is so overvalued that the increase in share value isnt based on any fundamentals thus 55 billion payout is ridiculously overblown and certainly against the interest of shareholders.
Then sell your stocks and cash it !!!!!
It's only like $500.000 per Tesla employee. For a part-time CEO. Almost twice the lifetime profit of Tesla. Totally reasonable right?
Damn, so you hate America? That's crazy.
It's for work he did when he was working 80 hours a week at Tesla.
😂😂😂 wow you don't have to bend over backward for a billionaire 😂😂@@samsonsoturian6013
@@henlo1910 Nothing to do with America.
@@samsonsoturian6013 So? Down more than 60% from the high. Falling sales. Falling profits. Musk is a liability now. He just managed to pump the stock like a ponzi at the time.
A company running an ad campaign for a vote to give their CEO $50 billion in shares is insane and frankly I am surprised its legal.
Right? Sounds pretty petty
He has to buy the shares. They are not given to him. God, why don't you ever bother to learn even the simplest things you talk about?
You are very misinformed....
@@matiashamalainen7965 he is given the OPTIONS. Which are so cheap to exercise it's nearly the same as giving him shares.
@@matiashamalainen7965 No, he doesn't. This is employee compensation in lieu of a salary. The shares come from a new issuance of shares (another option would be treasury shares, but Tesla doesn't have treasury shares for this). That's where all the concern about stock dilution comes from.
Have you seen the Cybertruck? Seriously, DON'T PAY HIM.
Fool, CT has over 2 million reservations. CT will out sell all trucks in the coming years. Do some research before you post.
@@lukevo6485CT *had* 2 million reservations. It has a ton of cancellations. Especially given that the price of the CT is double what the price was when it debuted in 2019 and the range is significantly lower. Tesla will sell quite a few CTs, but it won’t be anywhere near 2 million anytime soon.
@@lukevo6485you being funny, or are you just stupid
@@lukevo6485that is some serious cope considering that right now there's no wait to get a CT.
I 100% agree with your closing statement. I have no horse in this race but the fallout of a "No" vote would be immensely entertaining 😂
I think a yes vote would be even more entertaining. The stock will eventually go all the way to zero when he bankrupts the company.
@@LoveClassicMusic0205 He will bankrupt it either way.
Some weird comments here
@@LoveClassicMusic0205lol, still on this bankruptcy thing. Wow.... The cope is insane.
@@mjregan88the dude has Elon derangement syndrome.
He is trying to bleed the company dry before the eventual stock collapse
Heuh he is getting stock, not cash ?
That's not how stock based compensation works. Paying with stock options makes the books look better because it is not an operating expense, but the pay is at shareholder expense.
He is also not permitted to sell the stock for a number of years
In Charlotte NC Tesla's aren't selling. If you go down independence Blvd you will see multiple lots filled with hundreds of Tesla's. I've been going out there and recording and it's the same cars. They're not moving and they're only adding on to the stock pile. Yeah Tesla is definitely about to collapse.
@@SiisKolkytEuroohe can’t sell the new stock, he can sell his old options
gotta cash out before you crash out
Tesla is making a little money and even if EV markets go bust they can switch to making gas cars.
@@samsonsoturian6013 maybe the will build robotaxis and don’t sell them, so after 10 years the current stockprice is justified by the massive income they will have /s
Lol! They would never do that@@samsonsoturian6013
@@samsonsoturian6013 You act like a completely shifting the manufacturing process to designing gas engines is an easy process. They're 10x more likely to go bankrupt at this rate.
@@samsonsoturian6013 DeLorean 2.0 is worth like 50x less than the EV of the Future company...
No mention about how he raised the share price by talking out his ass about fsd, trucks, robotaxis etc?
Maybe that’s been the play all along. Just make outlandish claims to raise the stock price purely to hit those targets he set that would unlock this $55bil
@@jameslouizbuildsThere were also income and sales targets
@@jameslouizbuildsmaybe? For sure
@me-myself-i787 Stuff they expected to hit
its a strategy, a lot of people do that
Bro valiantly trying to pay off the principal of the twitter loan to reduce his interest rates
Edit: Got my first musk fanboy bait in the reply. Clicking through their name and seeing all their replies is something to be told.
Not how it works... You don't work in this industry. You're talking about a loan in a traditional sense. He got his loan from private equity. Our terms are way different. It's funny, I lived in the real world with you. But once you cross into the financial world, lol. You can't explain it to normal people. The Twitter loan is a lot of money to you... It's not real money lol. The we work ceo got funding again. You don't understand our game at all.
@@Tential1😂😂😂 at the OP’s edited comment
@@Tential1 Private equity firms typically don't "lend money". They're not a bank. Private equity firms buy shares (usually a majority) in a business and thus have equity in said business and voting rights. All this talk that "Private equity firms are financing Twitter" is nonsense. What Musk has done is borrow private capital. That capital has most likely come from mutual funds and venture capital financiers and undisclosed private lenders. The money is most certainly real, albeit in the digital realm. It's also most likely very expensive money with interest rates well above and beyond those you will get at the bank. Investors in mutual funds and venture capital funds do like to get paid handsomely for the risk that they are taking, after all.
Hopefully, with this new found knowledge to you, you will be able to pursue a more profitable career in your private equity firm.
I'll have to go and have a look. The reply that you got certainly gives an indication as to the size of the bus that he rode in on.
Lol that dudes an absolute troll. Doesn’t say anything that makes sense. “Numbers have extra zeros that means you don’t understand” 😂 yes they are different. But besides equity of said business being used as collateral & it usually being a shorter time frame for return of principal such as 1-5 years.
Ya lays off over 14k people and wants billions that is crazy.
For past previous work of several years, not his present work at Tesla.
Layoffs are industry standard. Stop acting like he invented them
@@PhonkEchoBut the industry doesn't pay their CEO's 55 billion 😮💨
@@PhonkEchohe invented a $55B bonus tho
@@PhonkEchohe pretends he invented many things tho. Also mass layoff during work day is pretty unheard of.
Every sensible comment has an Elon-Bot-Army reply advocating for the pay package. 😂
They should have never made the pay package.
If anything, the board should liquidate for this.
I bet Thunderf00t has a bottle of champagne ready for the moment when Musk's ego comes crashing down.
Same with common sense skeptic
Musk’s downfall would feed multiverses
Everyone who sold their scam shares early and in time, has cases of the stuff ready to P A R T Y
Wait a minute, if you have to motivate the owner and CEO of the company your company is dead.
I don't think you understand corporate finance. Instead of paying a CEO millions of dollars per month, rather pay him nothing. That excess profit in short term can be used to fuel organic/inorganic growth.
The BoD sets benchmarks that a CEO must reach in order to get a bonus/compensation for the work he has done. The BoD gave Elon ridiculous benchmarks that they, neither analysts thought he'd achieve (Tesla reaching 1 trillion in market as an example). But he led the company and surpassed all of the expectations actually by a big margin.
He isn't being fairly compensated for the work he has done.
Do you work for free?
@@mikeplateNot half the assets of the entire company.
@@Edison.m3806 This why we keep getting Enron, the 2008 crisis, etc. Compensation packages tied to the price of a stock at a specific time just rewards overpromising and fraud, they don't have to be here for the fallout when their lies get exposed.
@@Edison.m3806he achieved those benchmarks under false pretenses, Tesla is currently valued at half a trillion. He did not achieve those benchmarks
Rather than lay off 14,000 employees to save $0.7bn why not lay off 1 to save $55bn ?
Your title should be:
I have a drug problem. I need $56 billions.
Getting the suspicion Elon knows Tesla is going to implode in the near future and wants to bail out.
Dude, this predates that by A LOT
@@samsonsoturian6013 Its just anti elon chatbot response, act blue has been going on overdrive against Elon.
FSD has been improving rapidly using machine learning. It's going to be a big deal.
FDD will never exist. Anyone that thinks otherwise doesn't understand machine learning and what it can and cannot do and how that overlays on accident prediction. Captcha cannot even perfectly identify if a car exists in still photograph, despite virtually infinite photos of vehicles to input. @@taylorc2542
@@taylorc2542 I hope it does, but the track record of "we can do it now" and 5 years later still nothing is just to big to ignore. And a company that has it´s value based by a large amount on hype, which is volatile, is surely not going to benefit from these kind of promises. I mean the new roadster was supposed to be "made right now" years ago.
Just a small payment of 55 billion
Light work tbh🙏🏼
More than any other compensation package ever. With the closest payout previously also paid to musk
And roughly twice the cumulative net profits of Tesla since inception.
$55billion can go a long way and also do a lot in corporate america today.
It's not a cash payment, and he can't sell the stocks for a number of years
Wow, $55 billion for part-time work?! I'll do it for 0.01% of that.
u woudn't be able to, 55 bil is 10% of the company, for 10x the company value
5 years, 100+ hours/wk. 0 dollars for 4 out of 5 of those years.
You sure you can work for free for 5 years?
@@cpK054LIf my father owned an emerald mine, I easily could
Call his bluff, his wealth is wrapped up in Tesla.
He's bleeding money and needs a parachute. Not a fact, but this is what I think is the reason. And why now after this massive layoff?
You think Elon Musk would do badly if he stepped down?! 😂😂😂 ...
Let's not forget that guy is Billionaire. And he started Tesla and SpaceX when he had LESS than 100Million
@@ArtimusDragonbecause it was actually approved years ago, it was performance based compensation, the most ambitious one in history, all goals were reached
Now it's time to pay up
He deserves every penny of that 55 billion. It was pegged to performance. At signing, the company was going to shit.
@PhonkEcho The price went up because simps bought all his lies. Now people are getting smarter and the price is going down. He is not a genius, an engineer, or scientist. He is a scam artists.
The supercharger network is one of the few advantages tesla still maintains. Elon is an absolute manchild.
The pay package was a scam on the shareholders to begin with, they were already forecasting internally to meet 3-4 of those targets without him doing anything else. Just that would have been a ton of money, the rest was gravy for him
A scam that has 10x the value? Made Tesla the most valuable EV brand that all the incumbent companies copy? Even if you are a woke, that's unfair
Even worse they did a 3 year forecast and it showed 11 of the 12 goals would be hit.
What gets me is that he says he won't do his job unless he owns 25% of shares. I voted no. Lol bye.
How many shares do you own lmao
@@SiisKolkytEuroo more than I would like. I've been averaging out.
Is that not one of the major reasons Tesla is losing sales? To bring back it's losing glory, you have to let him take control of his "baby".
@@4evertrue830He already technically has the most control over Tesla
He owns the most shares AND the board of directors is filled with families and friends
That makes his control even higher
@@SiisKolkytEuroo half of 1 share in robinhood 😂
Oh no, the brain behind the cybertruck might not continue gracing Tesla with his brilliance?
OK you create an ev company from scratch that's profitable. No one else in the world is doing it.... But he's doing it, and selling an idiotic vehicle, and he's still profitable.... Lol. It's hilarious seeing how delusional people are. Like, you can hate someone but profit is profit.... Meanwhile, Ford, GM, etc. All lose money in the same industry, and you say all of those people are smarter than the dude making money. It's the weirdest thing I've ever seen.
Yeh.....They only have 1.2 million reservations.....what a bummer....lol.
Creation of Cyber truck showed how clueless this guy is.
1.2 million canceled once cybertrucks kept breaking down non stop
@@markmercieca5569at their current rate of production half of the people that reserved will die of old age before purchasing it.
For Teslavoters to dilute their own shares by 10% is absolutely insane. Especially considering the fact that the chinese automakers are making incredible cars. Tesla share price will def take a hit within 2-3 years.
Other view, if he took my 100€ investment and made it into 1200€ aka a 1100% gain. I dont mind him diluting me down to 1080€ again. Honestly thats a good deal, for a 10 year gain.
The shares were already put aside in 2018....Millennial is incorrect, there is no dilution.
Chinese EV makers thank Elon’s help to facilitate Tesla technology transfers to them!
The chinese EVs can't get into the US because of the tariffs that Elon Musk bribed the government to put in place.
*2-3 months
if he wanted 25 percent. why has he been selling billions od dollars of shares since it went public?
He’s only hurt the company since buying twitter. 🙄
Or maybe you just refused to hear a kind word about him
@@samsonsoturian6013 Yea its pretty obvious the media turn is just running cover for Biden.
no, people has heard enough and realize he's a grifter@@samsonsoturian6013
No he hasn't lol, it is way better than it was. Only leftist psychos who adore censorship are upset about the changes.
Free speech is worth it.
As always greedy management end up destroying their companies as they will earn the hatred of the public and their own employees as well in the long run.
greedy? his negotiated packaged tied his compensation purely on performance. tesla was worth 55-60 bil back then, he get 1% per 1x extra value he bring to the company, dude got its value to go 10x, ya he definitely deserves 10%, u guys tip your waitress more then that for bringing your food. but someone 10x your value and 10% is to much now... lmao
Yeah, fire him
Wouldn't be the first time Musk was fired for incompetence...
(Shhh, he doesn't want people knowing that.)
Are you just saying that because of Twitter?
@@samsonsoturian6013 It's called X. Nice try lib.
He met the performance targets he performed as he said he would, and therefore should be compensated. Accordingly, you do failed to look at this angle do you do you look at present day this is for something that took place in the past.
After doing a pretty solid job getting Tesla up and running along with the supercharger network, the man has gone off the deep end mentally. Every additional $billion he gets is like feeding him mercury.
He overpaid for twitter. He literally paid the meme price of $42.0 per share for it. That company was going bankrupt. According to the twitter balance sheets, it had enough cash for 1 year max. He could have bought it for 50% discount.
but it's also weird how the news is reporting on it as if he's crazy and how his pay package is 55bn. It isn't. It's a stock option and it was $55bn back when the stock was high. Less than half now.
Also who knows how much his pay package would be. It's as if he either gets the full amount or works for free. That doesn't make sense either.
@@SourDonut99that package is still pretty crazy. Compare that to any other CEOs pay out. However, the main issue with it was the lack of disclosures given by the board on partiality and how musk has threatened to take company property to start his own private venture. If the board made the proper disclosures and Elon didn't threaten to take from the company then this wouldn't have been an issue. It's also interesting how you say that he works for free. He has already cashed out more stock $ then the company has ever made in net profit. He's literally earned more than the company and that's after breaking so many laws and making fun of the SEC. If shareholders are unhappy with his actions and disagree then I think it's fair to cancel his new payout. After that is completed they can renegotiate a new payout structure that the shareholders are properly disclosed on after Elon pays whatever nominal amount the court charges him for his actions
Think I speak for everyone when I say he needs to lead a 1 man sub mission to the titanic. Only a great man like Elon could do it successfully.
Looked it up because I was curious. Tim Cook is the closest CEO in terms of yearly compensation. At $770 million a year. Which is a far cry from Elons $2.2 billion a year BEFORE this current package@@SourDonut99
No one in history has done what Musk has done anyone think they can do better? NASA can't do better. No one has his vision. He is #1 in several different fields. Oh no he's used drugs!@!! Oh my! are the satellites crashing? SELL your car because you don't like his politics? World of soft belly losers
Elon needs to pay back his Twitter dumpster fire
We've seen what your kind have done to the election and court system, so yea no on that one.
What have Rubber Duckies done to the electoral system?
Have Rubber Ducks gone woke & I'm only just hearing about it?
Yeh....That is why Twitter AI was valued at 18 Billion..... Wow, is that what you call a dumpster fire.....LOL. I am sure you laugh at your stock portfolio.... My Tesla shares are up 1000%.
@@markmercieca5569 That is fundraising for a new company, not Twitter. I confess to not being certain of the legality of taking that funding and paying off Twitter's debt, but I'd be surprised if the answer was "sure, that's fine."
@@markmercieca5569Learn what an ellipsis is followed by how to use one.
Vote NO for the ENTERTAINMENT VALUE! I second this sentiment😂😂😂😂
It's funny how that site has the cybertruck on the frontpage.
I don’t want to be a doomer but Tesla is kind of fucked and the forecasts of short sellers are coming true
Huh lol
It's obvious it's not worth it's stock price. If it will grow enough to be worth it is everyone's guess. But it doesn't seem more likely now than three years ago.
Tesla has been wildly overvalued for well over a decade and the bubble has just kept expanding for that entire time. I wouldn't short tesla because there are simply too many irrational cult members to prop it up. As the saying goes, the market for a stock can remain irrational longer than you can remain solvent.
OMG this is probably the worst take ever. Listening to Short sellers that Lost almost $60B betting against Tesla would be a very good idea. 🤣🤣🤣🤣🤣🤣
He should be awarded $55B for invention of Las Vegas tunnel which solved traffic.
He knows more about everything than any human alive.
Especially bullshitting.
This is satire right? It's hard to tell with fanboys sometimes
@@ILoveTinfoilHats It's a funny satirical comment, and if it wasn't actually meant to be satire then it is hysterical.
Especially bullshitting
He doesn't have a leg to stand on and the company would do better without him.
From what I can see the share price has been artificially buoyed by lies.
Full self driving, range, battery swap, electric trucks, robotaxi, roadster,cybertruck. And artificially inflated carbon credits.
Fire him. The SEC need to investigate him and sieze him proceeds of crime.
At some point I hope that people in general (and shareholders specifically) realise that the value of a company comes from the people who work there and not disproportionately the one person leading it
The way stocks are, this seems to usually be at the moment a company goes bankrupt due to over-focusing on share value instead of actual profit. I point at We Work as an example.
Tesla would not be a great EV car company today if Elon did not take the risk to start it and nurture it in the early years. It was his brain child from the beginning. You have to at least give him that credit.
@@4evertrue830 Actually, looking into the history of Tesla, you don't. It was not his brain child.
It is fair to give him some credit, his money was critical, but to say it was his brain child is simply incorrect. The company was founded with the idea for electric cars before Musk was involved in any way.
Tesla made a lot of their employees millionaires, don't forget that. And even if not, everybody is free to leave if other companies have more to offer.
@@jerome8660 "You can just quit" isn't a shining argument. It's applicable to every company, and flawed due to factors such as how health insurance works, the general economy, and potentially non-compete clauses (though those are no longer legal). A good argument would be about excellent working conditions and job security, but I imagine that's not an option for defending Tesla.
Musk is not very smart in the academic sense, but he is a genius at making money with bs. It's that simple. He's a modern day snake oil salesman, and that's probably because there is a fool born every minute. The current AI bubble is another good example of people's stupidity and how easy they will part with their money for hype.
No one should be allowed to have more than 10 million dollars a year. Give me a good reason why anyone can't live comfortably on that amount of money. And why do you want to have such a vulgar amount of money? Maybe they're compensation for something.
haha, there is a fool born every second 😅
He started PayPal with friends and successfully built it up into a great company before leaving. He achieved same in Tesla and built it into a multibillion $dollar company. He started Space X and it is also worth tens of $billions of dollars. So, how is he a snake oil salesman? Why can't you make it make sense man..smh.
No one needs to explain to you, a nobody why they deserve the money THEY made, building THEIR company. And the same would apply if you built your own company
Switch to 10 mil max / year would cement Warren Buffet, Blackrock/Larry Fink, and other billionaires into permanent billionaire overlords and none of the plebs would ever legally obtain the same wealth again. Pretty stupid idea. That's what we call "pulling up the ladder".
@PhonkEcho It wasn't even his company. He just bought in early and forced the original owners out. He consistently made poor decisions, including the Cybertruck, and tons of empty promises that he either doesn't fulfill or fulfills 5+ years later. Elon has been propped up by worldwide media calling him a genius and saying he's saving the world, but he hasn't come through on most of what he's claimed he'd do.
It's completely insane, 10k for each car that was sold undoubtedly a huge dilution of the tesla stock value.
Do you own Tesla shares? Mine are up over 1000% since 2018. Did your companies do better? LOL::...
@@markmercieca5569 maddoff was also a pretty swell dude until some guy checked the numbers. peak share value of 2020, was hugely based on the promises of robotaxis and semis more efficient than rail, you just had to wait until next year.
his objectives were achieved through lies yet he wants 18% to keep lying.
tesla is nothing more than an electric car manufacturer with side hustles
If I still held Tesla, I'd be out like a shot from a rifle at this proposal. A guaranteed loss of 10% overnight on stock that has no yield. And didn't these people read the Delaware court ruling? Lunacy.
@@markmercieca5569 and that is a bubble. That price is based on hype and not much else. You're like those people bragging about how valuable their pictures of monkeys were a couple years ago.
@@markmercieca5569 explain to me where that value came from? Because all I see is a huge bubble inflated by idiots.
A billionaire asking for money is crazy. This guy is flat out evil.
Whatever about evil he’s definitely greedy
So if someone is a billionaire you don't need to hold your end of a deal? What a shining example of morality you are!
You may not like the guy but an agreement is an agreement, he met the goals so they need to pay him.
Wether you like him or not.🤷♂️
He's a paper billionaire.
He buys with leverage, not cash.
Didn't he get sued for defamation and the judge found out he was actually broke?
This is the kind of pay package that should concern the US govt and should be heavily taxed by the govt. No super rich person, who feels they deserve this kind of performance pay package should avoid paying their taxes no matter what. 😤
You can't tax unrealized gains.
Janet Yellen is trying.
1:51 why lie? The “performance based targets” were so easily attainable it was near impossible not to reach the targets. THAT was the problem.
The board that approved this is supposed to be independent and support ALL of the shareholders. But they were in fact placed there so they would agree to do what musk wants at every opportunity.
And no, he was NOT doing the work with no compensation. In fact he used to advertise that he makes no money - just stock. He was given tons of stock options which were also generous. And he sold a lot of it. And made billions. So no - he wasn’t missing any compensation.
It was a con job, and the court saw straight through it, plain and simple.
Massively overhyped company not massively over successful
Which sensible board would accept a person like that, as their CEO? Not many companies would accept this behaviour.
I don't get it either. Elon's antics are getting crazy. People have been dismissed for a lot less.
@@Tuppoo94 All the worst takes, they accepted the deal because they thought it was impossible, the doubters have bad judgement.
Wouldn't be the first time fElon was fired for incompetence...
The same so called sensible board that invested in Tesla when the going was so good, they all became filthy rich. Now they want to go back on their word to compensate him? That is a stab in the back in my opinion.
@@eternaldarkness3139 You say he is so incompetent? Why say so now after most of these board directors have become so filthy rich off him at Tesla and his other companies over many years? He deserves his money dude.
Why don't we pay Ford or gm CEO 10k for each car they sell?
I can’t imagine a worse time to be asking for $55B
Call his bluff, he's too deep financially into his value through Tesla to walk away. he'd just spend MORE time on X/Twitter complaining about "wOrkInG fOr frEe" 🙄
Dude if my contractor did an excellent job but judge ruled I didn't have to pay due to a technicality, I'd still pay him.
fr
Did you pay your contractor 30 times the value of your house?
@@2011blueman if the contractor increased the value of my house by 300 times then it's well-deserved.
@@18000rpm What if it was twice what your house would ever sell for and more than all his employees put together?
@@baoboumusic not a fan of musk, but the contractor deserves to be well paid. My only point.
He earned the money.
They agreed to pay him the money.
It's his fucking company.
Pay the man.
Tesla would be better off without Musk. At this point he's hurting the company, both its customers and employees.
1000pc agree, he's only good at raising money and generating hype, they don't need him, in every other way he is a detriment
If that is the case, it shouldn't affect the company's performance at all. Let them go ahead and pay him the money then.
@@4evertrue830 well that's kind of the problem, Tesla isn't going to pay him the money. The shareholders are. They are going to go Poof and create 55 billion in shares, which dilutes everyone else's shares. He's just straight out taking this money from all the other shareholders.
Let me be honest! The cyber truck is UGLY AS HELL!
"I was going to vote yes, but I looked upon the cyber truck and despaired."
What? You don’t like the stainless steel dustbin look?
Remember what elon said his money is the 1st in and the last out...
He knows something is coming in the next half a decade
My husband just bought a house with one of his girlfriends, I want to transfer a bunch of money from our joint account to his personal account to keep him faithful
That's a fantastic idea. But before you do, make sure that he's still committed to the relationship that he has with you and that he won't run away with the washer and dryer and do his own laundry with it. And also, make sure that he still has the biggest say in how the house that you're living in is run.
😁 Good one!
I am not an Elon musk fan, but the incentive-based nature of the deal is the reason why I think he should earn it. Now separately, I think that's gross overpayment and part of the reason that the economy is going to continue to destroy regular people, but that's a different conversation.
Well.. he shouldn't have bought Twitter then!
crazy part is this was spelled out a long time ago, nobody minded when he hustled up a company.....
It's immoral to ask for such compensation when the company is firing people left and right, plus not delivering an absolutely quality product.
Obviously. And we need laws to stop it.
@@theultimatereductionist7592 and we'll be waiting a long time for those laws until lobbying itself becomes illegal
Brilliant closing statement. I think the "pay this man his package" commenters don't realize that the money is coming from their own pockets
I had an interest in Tesla. I got out three years ago. One of the reasons was that unlike every other equity that I own, the shareholders are barmy. They have no idea about investing.
Too many of them are first time investors and too many hold Tesla as their only investment. It's Dunning Krueger syndrome en masse.
Who in the world votes for a 10% dilution of their net worth on stocks that don't even have yield? It's lunacy.
being coerced to work excessive overtime for rather moderate wages while the big boss himself works part time and demands 55 billion with a "B" must really grate on a whole lot of workers!
So basically he's owed $55 billion because he used his personality to drove up the price of the company's stock, to the point that market capitalization exceeds yearly profits by a factor of 30... How has this worked out for GameStop?
I mean, they're still struggling, but they used that whole nonsense situation to raise capital and not die, so I'd say it went relatively well for them.
It's not sustainable without genuine major change and legitimate profit, however, and that's definitely not the situation any investor wants Tesla in.
He brought in a crazy amount of money, all driven by lies
The guy wants 55 bill but all he did to get the award has been undone? You would be a mug to let him do it.
A deals a deal, until you get a Biden judge.
I guess that contracts don't matter. A judge can just arbitrarily rule that (a board approved, shareholder approved, crazy targeted (at the time) all or nothing deal, which he managed to hit every target, and make all of his shareholders rich in the process) pay package is somehow unfair to shareholders and she can take away his already earned options.
Clown show partisan activist judges can steal your money retroactively. This should be a red flag to anyone running a business.
You can't predict the future. He took a major risk with the potential to earn nothing if he failed. He succeeded. You sit here two years later and say "oh the stock isn't still at all time highs, we should take the money away from him now. Yet I didn't hear any complaints rwo years ago when you were cashing in tesla stock after it 15x'd from 2020-2022.
Totally dishonorable statement you make. No one would never do business with someone like yourself.
This is money he claims he deserves to be paid years ago, when he was deeply involved in building Tesla up, not for recent work he's doing. He should be compensated.
@@4evertrue830No he doesn’t deserve it. He lied about the board members being objective and some of the metrics that elon needed to hit were already on pace to have been achieved whether he was CEO or not.
@@Colombiaguapoi dunno bro
It's was a deal, he tricked everyone, he succeeded, so maybe he doesn't deserve it BUT he really should get paid 🤷🏾
Is it fair to say that the August unveiling of the robotaxi will be make or break for Tesla? There isn’t a snowman’s chance in hell he will have anything resembling what he promised ready.
That’s not how the game is played. He will unveil some prototype robot taxi with self driving make up fake release dates that’s 2 year in the future, then delay that by another 4-8 years. In the mean time all the fan boys and analysts will generate hype on how big this future revenue stream will be etc, to prop up the stock and obfuscate the stock is priced like a startup but actually losing sales / revenue.
He played this game many times, look at fsd…semi truck…25k ev and on and on. Basically fake until you make it, if that fails, invent some new carrot to dangle in front of the fan boys to continue prop up the stock
I have a feeling this time it will be different.
@@rossamullen5918 he's been claiming he's figured out FSD every year for the last decade. The guy is a complete con man. He should be prosecuted for fraud at this point
@@rossamullen5918 I have a feeling it won’t.
This large of a compensation package would set an absolutely terrible precedent..
It was a small package that became big because he succeeded, its the best precedence considering other ceos get payouts regardless of performance, inspite of it really.
@@REgamesplayerBesides, the company does not necessarily have to pay him the lump sum. Payment can be spread over a period of time, say 5 or 10yrs which will make it much easier for them.
It's more upsetting that Jim Farley and Mary Barra shrank the company and still got paid millions. Elon grew the company 11x.
@@REgamesplayerwhat are you even talking about? Who has to buy out what?
@@taylorc2542 I think most of the criticism is coming from the lefties that don't like what he did with Twitter restoring accounts of people they had silenced.
Just saw your videos and bought AMS28K yesterday.....its up 24% today talk about timing......Thanks
Talk about bullshit
get a job so you won't need to scam for a living
@@Teolulz It can't get a job. It's just a bot.
How?
@@blackadder564 lol
Your contractor argument breaks down because of one factor: Tesla wants to keep an ongoing relationship with Musk. The home owner isn't anticipating an ongoing relationship with the roofer.
It makes sense for $TSLA investors to vote no. Elon is an employee, one who is both doing a bad job over the last 4 years and is providing significant PR issues and brand risk to the company. He isn’t doing his job. Now there is an opportunity to adjust his pay adequately to his contributions. Voting no isn’t a vote to not pay him at all, it’s an opportunity to adjust the pay package to be reasonable to save investors money, and show Elon that he can’t just do whatever he wants and expect to still get whatever he wants. Voting no is a wise move financially
Forget Shiba and Dogecoin. The next Bull runner gonna be AMS28K
scam bot
How?
@@REP2016RTM youtube raosted u with a: **Translate to English**
-Bankruptcy within 3 years.
//ThunderfOOt
Loved Thunderf00t’s footage on this.
We are most certainly going to see the measure of the company's ability to scale in both directions.
Temper tantrum = great entertainment value 😂
"What would motivate him," Tesla's stock price. It's most of his wealth. It's what motivates a lot of CEOs in his position with huge stakes in the company.
@Wall Street Millennial What Telsa's Board, shareholders and Musk agreed to, was that if he could make the company grow by over 1100% and other reach other metrics, the company would allow him to buy around 9% of the outstanding shares at a fixed price. What many people fail to understand, is that Elon Musk would have to hand over $7 Billiion to Tesla, to get those shares. Some CEOs just get paid for their efforts in cash, Elon wanted a share of the company instead. After he buys those shares he would be required to hold them for 5 years, before they could be sold, to delution is not really an short term issue.
This is a done deal....pay the man!!! We can bitch about his new package and hold him to the sword on that.... to me that seems to fair.
He can't dump the shares he gets for 5 years but what you don't realize is that obce he gets those shares he can dump the one's he already has, so he can cash out again at the overvalued share price. He does not have to commit for 5 years like the fanboys assume
@@michoacan55 According to your logic he can dump the shares he currently has now!!! The 2018 shares, don't affect what he does with the shares he is currently holding. With the 2018 shares he would only be able to cash those out, 5 years after he has bought them. In 5 years, who knows what the share price will be, probably a lot higher... would be my guess.
I do see your point, but he has to commit the 2018 shares options for 5 years after purchase. Fanboys are correct, he will be stuck with 2018 shares for a minimum of 5 years. What he does with his current holdings is not affected by 2018 options and it is not a material issue at this moment, since this is only about the previous deal. We are talking about a deal that the board, shareholders and Musk agreed to...nothing else.
As someone who shorted Tesla, I hope the vote succeeds!
Not only have his antics made me money by tanking the stock price, if he gets those share options he further dillutes the share price, thereby making me more xD
His ego will not let him give up the spotlight of running Tesla. His ego is still writing checks.
The IncelCamino being a perfect example.
You say the share price is down in the past 12 months … it is still up 10x what it was in 2018 when the options were issued. That growth for a blue of blue chip stock is amazing. I am first to call out greedy executive deals but this one is unfair to Musk. The options were issued in 2018 and that was the value. Shareholders and Musk hit powerball making between 10-20X. He deserves the options that were voted by shareholders in 2018z
I think many people share your closing sentiment. Like you I do not and have not owned a Tesla vehicle nor Tesla stock. But seeing him have a public meltdown would be priceless.
Contrastingly, They voted YES
The guy is totally bonkers , the whole Mars thing is total craziness.
If you lived 125 years ago you would have said that to the Wright bros....lol.
A house would seem crazy to a Neanderthal.🤷♂️
@@markmercieca5569 Yea, I would have said to the Wright brothers that going to Mars is crazy. Because it was then and is now.
@@stuiley424 I’m guessing in your head that sounded clever😂. Musk said he wants to take a million people to Mars, it’s total bs. The guy lives in a fantasy world, he really needs to dial back on the pharmaceuticals.
@@tatata1543 going to the moon was science fiction, until it wasn’t.
You do you dope but he’s been a lot more successful than you will probably ever be, even if he does drugs or not.😂
FYI, "Boring" is no longer a thing, quietly swept under the rug, along with the billions spent and the promises of a new tech all gone poof.
But it was built with rocket technology 😂
Basically he's asking more than double Tesla ever generated in profits 😂
Well his pay is a business cost
I voted FOR and I voted FOR again. I bought Tesla shares with my hard earned savings only because of Elon Musk. No corrupt judge and greedy lawyers will rob Elon Musk and Tesla shareholders.
It's easy to hate on him, but who among us doesn't want 55 billion dollars?!
Good point.
To me 1% of that is enough. I'm not that Greed.
@@antoniofernandesmarchetti1097that’s because you are poor, you are not greedy and only want 550 million…then once you have 550m and used to that life, you would want 5 billion and so on…don’t kid yourself
I do not want 55 billion. That money, even 1% of it, will be nothing more than one giant head ache.🤕
@@antoniofernandesmarchetti1097so you're OK with setting a precedent that you can sign a contract, and be paid something, then later, a judge says, nah not fair and takes the money away. You're happy it's happening to a billionaire you don't like, but did you ever consider, that's why they chose him first? Next, it will be taking away pay from executives, and you'll cheer that. Finally, it will be you the worker, where the law was always intended to hit. And they will retroactively take back your pay. You're short sighted.
He wont reach Steve Jobs status until he’s fired from his own company
I'm not greedy, I'm ok with 1 billion.
1 billion Dogecoin
I’m even less greedy I’ll take 1 million.
Good overview, but it fails to point out that Musk's package would be greater than the cumulative lifetime profits of Tesla. This represents $11,000 per vehicle sold, which is insane - particularly at a time when profitability is falling.
This is a two birds one stone situation, he needs to reimburse himself from the very stupid Twitter acquisition and also regain control of his crown jewel. For a “Futurist” Musk is incredibly shortsighted and delusional.
If you think Twitter is a massive issue for him, you know nothing about this industry at all. It's an industry that gave me 10m to work with when I'd never filed taxes. You don't understand how money flows here. Hell, I didn't until I worked on the other side. They gave me the money, and I didn't burn it. I didn't understand why I was supposed to burn the money until I got to the other side. You'll never get this. It's brain breaking. Money isn't what you think it is.
@@Tential1spill the secrets
This comment section is just salty cope filled ignorance you people think he's going to get a check for $55 billion and the the 3 of you that realize it's stock are complaining that he wants control over his own company you people are sad
Love the closing statement and couldn’t agree more!
Tesla vs Elon: if you fail you get nothing. If you succeed: you also get nothing. From 2018 to now: you also get nothing. Please be the primary investor as well. You get nothing if it goes bankrupt, and it nearly did. Apple failed his car. Dyson failed. So we agree on that what you did was close to impossible. We also agree that early investors made a fortune and thanks for that, but now beat it. fun fact: It only took you 5.8k investment in 2010 to be worth a million in 2020. Give this man his money.
Happy 2nd day of winter from Australia. Now, back to the Musketeer!
Just found this channel, wasn't sure what my thoughts would be but the moment you said, "I want to see it fail just because Musk will throw a public tantrum," was icing on the cake. I'm sold on subscribing just on that comment alone.
The pay package is excessive, but it was agreed to in 2018. This video failed to take into account the mocking from analysts at the time in 2018 that the milestones could never be achieved and that Musk would not receive a penny. Musk achieved the goals and therefore the agreement should stand. The earlier analogy of hiring a contractor to build a home and later having a leftwing radical judge rule that it is unenforceable because he deemed it excessive is an good example of how this is ridiculous. Both parties agreed to the contract and the contract was fulfilled, then it’s only fair that the payment be received at the agreed upon price. The what ifs and that Musk is asking or will be asking for more shares are other topics that muddy the current topic. Wall Street Millennial usually does a good job in its analysis; however they fell far short to properly explain the topic and for all the intro about trying to remain neutral, its advice at the end speaks for its overall biased reporting. I think Musk politics has created enemies from the left-wing business reporters, however they need to be professional and not let their political views taint their business reporting. Sure, there will be around a 10% dip in common shareholder stock value, but the Wall Street Millennial fails to mention that Musk has the ability to increase Tesla’s valuation far above the initial 10% short term hit.
The pay package will most likely fail. If I were Musk, I would step down as CEO and sell my entire shares or do so gradually without any SEC violations. Then take the knowhow and die-hard workers that are willing to follow him into creating a private electric car company as SpaceX is structured. Then the fools that voted the package down will see their Tesla stock crater.
the deal wasn't thrown out for being excessive. It was thrown out because it wasn't negotiated legally. The board is supposed to act on behalf of investors and negotiate a pay package that is in their best interest. The Tesla board didn't do this. Musk filled it with sycophants who just do what he tells them. The evidence proved they rubber stamped the number he picked. So the size of the deal wasn't the issue, it was the fact that the board made no effort to do their duty.
@@ThatGuy-bz2in What is your definition of legally? There was a legal shareholder vote. If you seem to think that shareholders were tricked into voting yes then that is on them for not doing their own due diligence. There were plenty of analysts that ridiculed the agreement. How do you know that the board didn’t act on behalf of investors and do its duty? Some investors at the time heavy shorted the stock like Bill Gates because Tesla at one point was near the brink of going bankrupt. Musk’s leadership helped to create the Tesla valuation of today. Many shareholders have profited enormously during Musk’s tenure. Get the facts straight. I do think the amount is excessive, but that is subjective. The shareholders voted for the package in exchange for Musk achieving difficult milestones that again I remember being laughed at by the so-called business experts. Musk fulfilled his end of the bargain. I don’t see how anyone can logically not allow this compensation agreement to stand. I do think that the Judge erred. Keep in mind that we wouldn’t need supreme courts if our justice system was always correct. It has its flaws and hopefully the supreme courts makes things right.
@@RudyVon184 my definition of legally is "does it comply with the law". The board of directors has a responsibility to act on behalf of shareholders. Their job was to negotiate the pay package with musk to get the best deal possible for shareholders. We know they did not do this. It was proved at trial. There was no negotiation at all. They rubber stamped the number musk picked. The shareholders approved the deal without it being disclosed to them that the board had not done their job. Therefore, the shareholders were misled and deal is void.
@@ThatGuy-bz2in You miss the point. Let’s assume that you are correct. The Board of Directors at the time or even today are just puppets of Musk. You are correct that the Board of Directors has fiduciary duties to the preferred and common shareholders. I saw nothing indicating that they did not act on behalf of the shareholders. The 2018 compensation package contained milestones that would enormously benefit shareholders if achieved. If the milestones were not achieved, Musk gets nothing. I would argue that the Board of Directors did act on behalf of the shareholders and the stock price from 2018 to now proves it. The stock price of Tesla at the end of 2018 was $22.19. The current stock price today at 12:00pm EST is around $178. Okay, let’s talk about the compensation amount that you claim was rubberstamped, even though you stated earlier that the amount does not matter. So what? You are right, it should not matter. What matters is that a package detailing the terms of a compensation agreement was presented to the common shareholders to vote on back in 2018. To either agree or reject. The Board of Directors has no power to adopt the compensation agreement, only the common share voters. It was voted on and passed by the shareholders, not by the Board of Directors. The contract details are clearly spelled out to anyone that can read and it is available to all investor. It’s a standard contract. A contract can be voided for something illegal or if at least one party was under duress. The 2018 compensation package was not illegal and no party was under duress. I believe that the main reason this compensation package was rejected by the Judge is because of the amount, which you agree shouldn’t matter because both parties agreed. If it was only for one dollar, do you seriously think the Judge would have found this contract void? And/or for partisan politics that has started to influence our judicial system.
@@ThatGuy-bz2in Not dislosed? It's on the SEC website. Just google it. Tell me. Why do you hate Musk so much that it impairs your logic?
You can tie this up in another golden chain with another set of performance parameters but with safeguards for actual disbursement. Such as certification of the FSD for public roads in the US with the limited sensoirs they currently use.
7:28 "We dont know how involved Musk is in day to day operations" - no, but we can take an educated guess. Model 3 and Model Y - not very involved. Cybertruck - That was ALL Musk the whole way. Firing the entire supercharger team - That was Musk all the way.
This is a partisan video. Your analogy with the contractor is wrong - the right analogy would be that the contractor meets stretch targets and quadruples the value of the value of your house but a judge says you don’t have to pay him. Wouldn’t you still pay him what is a lot of money because of how much you benefited? Many would because that was the deal, and because it is fair. Shareholders benefited massively. Find another blue chip stock that grew so much over that period.
I wonder what all all the bricked cybertruck owners would vote
If the company signed the deal; then pay the man.
It's a matter of honoring the contract. If he has met the terms, he gets paid. Simple
@@geoffreyhughes1 The problem is the deal was not made in good faith. The board is supposed to be independent and work for the good of the shareholders. In this case, the board is not independent. They are all friends and family of musk, so they just rubber stamp whatever he tells them to. That made the deal null and void since the shareholders were not aware how bad the board really was. So the contract doesn't need to be "honored" because it was never valid in the 1st place.
@@ThatGuy-bz2in Musk should take this to court then. He could probably prove he acted in good faith pretty easily.
@@geoffreyhughes1 lol you're kidding right? It went to court. He lost. It was proven that the board did not act in good faith and did not do their duty to the shareholders.
@@ThatGuy-bz2in then the issue is solved then. Why argue the point in a video or rant in a comment. He isn't getting the money.
" Legal Obligation" ... Are you serious? ... If you said tou would pay someone, you pay them.
You don't go to a judge to try and slime away from the obligation ... After receiving the service.
It's wild, because it's short term as hell. If this can be done to Elon, then how easy will it be for employers to do it? In fact, isn't it more reasonable to think Elon is a scape goat to create a precedent to use against workers later? People aren't smart.
@@Tential1 .... For real! ... The establishment tells people to hate Elon ... And suddenly everything done to him is okay ... People don't realize that after the weapons are formed against this one man, they are actually usable on literally anyone.
@@Tential1 The court's ruling was that the board failed it fiduciary responsibilities to its shareholders as it was beholden to Musk. In the case of a publicly listed company, the shareholders are very much like "workers" anywhere else. The board has a duty to see that their interests are first and foremost. It has a duty to ensure that their "pay" isn't cut.
Unfortunately, it seems that not all shareholders are aware that their net investment is going to take about a 10% hit if this package is voter approved.
@@Tential1 lol what? What precedent? The whole point is that Elon stacked the board with sycophants and used them to lie to investors to get his package passed. That is why the deal was iced. I'm not sure how workers could stack the board of directors to get paid...
That's a whole Twitter plus 11 billion.
Imagine if he doesn't get payed and he step down as a CEO if also start dumping his shares guess what happens to the share price. Then the real investor really could loose lots of money just out of greed.