[lesuorac]

> Does the combined market cap count? That would be wrong.

It counts and it's not wrong.

Sure, the Tesla award takes into account any M&A but growing a 2T company to 3T is a 50% increase. While growing a 1T company to 2T is a 100% increase so it's expected to be easier for him to hit his award targets with the companies merged as opposed to not merged.

[xmprt]

If we combine the market cap of the entire S&P500 we get close to 70T. That doesn't mean any of those individual companies are any more valuable or any of the investors are any richer. It makes no sense that Tesla shareholders would be ok with paying out a performance bonus just for M&A that doesn't grow the value of Tesla and would just dilute their shares.

[appplication]

Well yeah it doesn’t make a ton of sense but the shareholders already cast their vote on this. I’m not sure what they expect would happen but I also don’t think they care. Elons shareholders are a special kind of financial sycophant.

[s1artibartfast]

Most are tied to operational milestones as well if I understand correctly

[lesuorac]

As pointed out by somebody else [1]; Operational Milestones are waived if SpaceX buys Telsa.

[1]: https://news.ycombinator.com/user?id=antasvara

[s1artibartfast]

Thats not what it says. My understanding is SpaceX milestones stay intact.

For Tesla ops milestones they would be waived, this is fine because accusition is a chance for Tesla shareholders to cash out at that price.

[lesuorac]

We're talking about his Tesla grant so SpaceX's grant is irrelevant.

The text written in the link you did not read, states "Notwithstanding Sections I, II and III above, in the event of a Change in Control, the Operational Milestones shall be disregarded".

[s1artibartfast]

The link supports wxactly what I wrote. Not sure where your confusion is.

[andruby]

I understand Tesla acquiring other companies counting to the cap, but Tesla _being acquired_ by another company, why would that count?

[lesuorac]

Because that's the grand plan from the start. You don't put a sentence like "In other words, upon a change in control where Tesla is acquired, vesting of milestones under the CEO Performance Award does not require the achievement of a matching Operational Milestone." if you didn't think Tesla could be acquired.

The goal is to give Elon his 2012 award package but making it his 2018 one.

[paulddraper]

It the shareholders' value that counts.

And that doesn't get any more by 50% increase with the same dilution.

[adgjlsfhk1]

the problem is Tesla's board is controlled by musk