I don't understand why everybody thinks this fee is outrageous. These lawyers just saved Tesla's shareholders way, way more than that. Pay $6 billion to get $50 billion? I'll do that deal all day long and twice on Sundays.
It might be better for Tesla shareholders than the past two years when he’s been essentially absent, but nobody else can step in to make decisions. The company is clearly behind in core product development and spent way too much time on Musk’s stale old follies like the Cybertruck.
Elon leaving Tesla would be the one thing _to_ make me invest. The company has fantastic growth potential being squandered by Musk on useless products like the Cybertruck.
Tesla's core customer is a person buying a fairly spartan EV sedan or crossover. That's not going to change until the current rate of Cybertruck production and pre-order delivery acceptance changes.
chuckke nobody buys a car because they feel like giving a billionaire money.
I mean, if you can afford to spend $100k just to simp for Elon Musk, god bless you, but the rest of us want $100k of value when we pay $100k for a car.
The board, run by the shareholders, wanted that deal and put it in place. They must have thought that the value add was worth it. Granted, it seems many do not think they acted correctly, hence the ruling and the lawsuits.
The point is that time will tell if this really saves money over the long run. I do not know the law and I am not questioning the board here.
About 78% or so of the shareholders voted in favour of the deal. And will probably vote again when asked.
The lawsuit was done by a shareholder with a total of 9 (nine) shares.
If those 78% of shareholders believe that Elon having $56B MORE is a priority in their lives, then should just voluntarily give Elon their shares or send him cash.
Companies and shareholders meetings work a bit differently than what you suggest.
Other than that, the grand majority of Tesla shareholders are quite happy with the financial state of the company and would like for Musk to continue leading the company and be compensated for it.
One person with domain knowledge of running things could be well worth it. How many times have you seen adding more people just make it a bigger, more unsustainable mess?
Musk would be paid in stock, so the "shareholders" did not win or lose anything (unless we assume the shareholders are at war with each other). If he turns sour ... i cant imagine the shareholders feeling like they won much.
In other news, cheap EVs are entering the market so maybe it's a good opportunity for Elon to escape Tesla before it becomes a legacy brand name that some chinese maker will buy in a few years (like chevrolet or sth).
Some shareholder benefited a lot. Some bought at the top and have only had negative returns. Some have a net zero cause the bought at this point on the way up.
Just because some people have astronomical returns doesn't mean everyone received the same.
An example with smaller numbers: Suppose a company is worth $10 and has 10 shares. The board issues 10 more shares to one person.
Sure, the company would still be worth $10. But there are now 20 shares outstanding. Everybody except the guy who got 10 shares would see their shares fall in value from $1 to 50 cents.
Basically, issuing stock to one person has the effect, mutatis mutants, of transferring wealth from all the other shareholders to the person who got the new stock.
Still the total value the shareholders hold is the same so they have have not been damaged as a group, which is alleged here. The damage is psychological, i.e. most of them are jealous of one of them
Any money or shares Tesla pays to Elon is money or shares that could instead be used to pay dividends to the shareholders or to buy back shares, which increases the value of all the shares that have not been bought back.
chuckle so if you had $100,000 of stock, you would in no way feel like you had been ripped off if you logged in tomorrow and it was only worth $50,000? Because...that $50,000 was transferred to the CEO's stock account? After all, the $50,000 didn't just disappear, it transferred to the CEO's stock account, so it all evened out...
...man if you really feel that way, can I interest you in some stock? I'm thinking about making a start-up...