
Tesla shareholders urged to oust Elon Musk over $55bn pay deal - Sumitmic
https://www.theguardian.com/business/2020/jun/30/tesla-shareholders-urged-to-oust-elon-musk-over-55bn-pay-deal
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maxharris
I'm a Tesla shareholder (110 shares), and I voted against that awful proposal
to mess with Musk's compensation. His leadership is the reason Tesla is what
it is today, and without that, I would not have any expectation of further
growth, which would lead me to dump my shares.

Tesla is likely to be worth 10-20k per share by 2024 as long as Musk is still
CEO, and they keep executing as they have been so far. So please, don't try to
"help" us shareholders, because all you'll do is hurt us.

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xkjkls
You think Tesla will be a $4 trillion market cap company in 4 years? Do you
have any idea how crazy that valuation idea is?

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maxharris
Back in 1999, people made the exact same argument about Amazon. At that time,
the people in the video below said that Amazon's market cap meant that they'd
have to grow to sell 100% of all books sold in order to justify their
$90/share price.

[https://twitter.com/xiang_aw/status/1278347734055923713](https://twitter.com/xiang_aw/status/1278347734055923713)

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xkjkls
Yeah, and Tesla is not Amazon. Not in any way, shape or form. Amazon is a
unique success because it is unique. Tesla is a 15 year unprofitable car maker
that has never met its projections or expectations on future profit or
revenue.

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totalZero
1\. Set valuation target with incentive payout for Musk 2\. Tesla meets
valuation target, benefiting shareholders 3\. Shareholders complain that the
incentive payout is too high

I don't like Elon Musk at all, but this is really bizarre logic.

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xkjkls
It is insane to set market cap goals instead of share price goals. The market
cap of Tesla can go up without ever benefitting shareholders.

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totalZero
Market cap goals and share price goals are the same thing. Share price is
simply market cap divided by the number of shares outstanding.

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xkjkls
Yes, but in the case of issuance of new shares they aren’t. Stock based
compensation adds to the market cap but not to the stock price. Same with
acquisitions done in stock.

You could merge your company with another company the same value and double
the market cap without the share price changing.

