Originally published at: https://boingboing.net/2024/06/14/tesla-shareholders-vote-to-give-elon-musk-pay-package-worth-56bn.html
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Any tesla shareholder with any sense (yes, I know) is now looking for a greater fool to unload this onto.
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No one person should have $1bn, let alone $56bn, let alone $56bn more.
Somethings broken.
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Texas isn’t really more business friendly than Delaware, in terms of corporate law. There’s a reason so many businesses are incorporated in Delaware, even though it’s a tiny, tiny state. The difference, really, is that there currently is one federal judge in Texas who is a hardcore Trumper, and Musk feels that is more beneficial to him right now. And yes, the current Texas political leadership is less likely to pursue Musk or Tesla for anything. But that could change. On paper, the law in Delaware is more corporate friendly. This is a short sighted move on Musk’s part, and I hope it comes back to haunt him some day.
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Well, that appears to be the only moves he’s capable of.
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The reasoning is if he doesn’t get the money, then he’ll become disinterested in Tesla and not spend as much time advising and geniusing their future… Essentially, the King is bored with his toy so rob the coffers, tell him he’s the best ever, and hopefully he’ll still care about HIS OWN FKING COMPANY.
He’s cashing out to pay off Xitter before Tesla self-drives over a cliff.
Unrelated - Saudi Oligarchs congratulate Mr.Musk on the continued use of his unbroken kneecaps.
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Considering Tesla sales last quarter brought down the entire EV sector, that really seems like a positive rather than a negative.
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Texas. This damned state has pulped my last nerve.
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Pretty ironic that the shareholders more or less ensured that their stock will tank.
It’s just mind boggling they think he deserves any sort of pay package near that price.
Tesla has increasing had QC issues, even with their established car designs, never mind the extremely buggy Cybertruck. And they got 47,000 sitting, waiting for someone to buy them. That’s a terrible omen for the company.
Tesla has always had a bloated valuation in the dreams of what it could be. But the pie in the sky goals vs reality are every widening, and the bigger auto makers are all making strides in the EV market, where they no longer have that first to market advantage.
Not financial advice, but I don’t see how this is sustainable.
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The only reason the stock is propped up to INSANE values (P/E ratio = ~50) is because of the idea of veryspecialmagicalspaceboy. Even if veryspecialmagicalspaceboy is bad at his job, lies like a motherfucker, and is hurting the company, you can’t hold him to account, because then the curtain gets pulled, the spacemagic goes away, and we see a very normal car company with an asshole as CEO.
Classic tiger by the tail situation.
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So do we short the stock or not?
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Yeah, I hate to say it, but that’s accurate. Nobody who was buying shares of the company at anywhere near the current price did so based on any sort of rational economic evaluation. It’s long been basically a meme stock based on the Cult of Musk, so to the extent that owning any meme stock is rational the shareholders really want to keep that cult going as long as possible.
For one point of comparison, Ford has more than double the revenue of Tesla, a similar profit margin, and a P/E ratio of about 12 or so. The last thing that most Tesla shareholders want is for Tesla to become an ordinary car company, and they’re willing to keep gambling on Musk in the hopes that he can keep the magical thinking going a little while longer.
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How far are we from the point at which economists and historians start writing about meme stocks in the same way that they write about the South Sea Bubble or tulip mania?
“Meme stock” is just shorthand for “irrationally-overvalued stock with crap fundamentals”: it’s a bubble with its own ticker symbol. Presumably, some small number of investors do well out of meme stocks by buying low and selling before the crash (sometimes because they were involved in the growth of the meme stock, pump-and-dump-fashion). The zero-sum nature of these things, however, means that many more will take a haircut, and it will most likely be those people who are emotionally attached to the stock (or emotionally attached to the belief that they can get money for nothing).
Will meme stocks as a breed die out when retail investors finally wise up (unlikely to happen), or when they finally run out of money? Or does the perpetual human love for get-rich-quick schemes mean that meme stocks as a wealth transfer mechanism (from the have-nots to the haves, naturally) are here to stay?
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Would P. T. Barnum say that when or if the current generation of retail investors wises up, the next generation of investors in meme stocks is just a few minutes behind them?
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Remember the days when we used to fret about multi-million dollar payoffs to C-suite execs?
This whole thing is disgusting, should be illegal, and reinforces the fact I will never buy a Musk-adjacent product as long as I live.
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