Comment by andsoitis
14 hours ago
> Tesla is crashing and somehow people thought giving him a huge pay package made sense.
There’s only upside for shareholders.
Musk’s package is entirely performance-contingent and structured as 12 stock grants.
And the targets are very ambitious: valuation ($8.5 trillion) and operational goals (20M cars, 10M FSD, 1M robotaxis, $400B profit) over 10 years.
https://poole.ncsu.edu/thought-leadership/article/inside-the...
> There’s only upside for shareholders
On the other side of the coin, they really don't have a choice; either they attempt to provide leverage (and using non-realistic goals is excellent to avoid actually having to pay it), or any major misshap with any of the other businesses that may have as collateral tesla stock (either directly or indirectly) would basically bankrupt the company. And the scenario where Elon would attempt to do a sort of firesale on purpose just to take revenge isnt far-fetched either;
IMO The only way forward for them is to keep him happy for now, while attempting to either do damage control or graceful exits.
I think this is a misread. They want extraordinary returns and think Musk can deliver it. Push him, make more money.