[seydor]

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).

[pylua]

> did not win or lose anything

Is this true? Would there not be dilution?

[Kluggy]

There absolutely will be

[mgiannopoulos]

Since the stock went up 10x during the timeframe of the deal, the shareholders benefited a lot.

[Kluggy]

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.

[mgiannopoulos]

We are talking about the shareholders who voted for the deal 6 years ago. The share is 10x since then. That’s why Musk was awarded the shares.

[Zigurd]

Especially if they hold TSLA indirectly through ARKK.

[seydor]

How would there be dilution? He got stock options

[seydor]

he s a shareholder too, no? net should be zero

[rhelz]

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.

[seydor]

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

[hollerith]

That makes no sense.

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.

[seydor]

That's again assuming that elon is not a shareholder

The dividends/buybacks are irrelevant. Anyone could sue to cut down dividends to increase buybacks or vice versa but thats besides the issue

The whole conversation about dilution is irrelevant: elon was granted stock options, there would be no issuance of new stock

[rhelz]

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...