I believe the upcoming TSLA shareholder's meeting could be a lose/lose for the company. At issue: whether shareholders believe Musk should receive his $56B pay package (originally agreed in 2018 and struck down by a Delaware judge earlier this year). Proxy advisory firms ISS and Glass Lewis have recommended against approving the package, and many institutional investors have followed their lead. Still, a majority (56%) of those surveyed said they expect the proposal to be approved.
However, whichever way this vote goes, I expect a negative outcome for TSLA. There's one of two outcomes:
A) Musk Pay Approved
- If the pay package is approved, it would bring Musk's ownership of the company close to 25% and dillute all other shareholders by 10%.
- For many shareholders I expect this to be the last straw for them. Those who vote against the package will see this as musk trying to extract as much value as he can from a dying company. Especially after this year's sales slowdown (Hertz is selling off its Tesla fleet, admitting the move was a mistake) and axing of the entire supercharger team. Not to mention Musk's continued shitposting alienating desperately needed democrat buyers.
B) Musk Pay Denied
- If the pay package is denied, I think it would indicate the beginning of the end for Tesla. Musk has already said that he would shift his focus to his other companies if he doesn't get his $56B.
- He has threatened to develop AI at one of his other companies instead, and has already admitted to diverting Nvidia GPUs from Tesla to xAI and Twitter.
- Musk has been the primary driving force behind Tesla, and without his presence and constant hype I think his diehard supporters will begin to reevaluate their ownership of Tesla stock, leading to a major selloff.
My position: I own 6 contracts of the TSLA 175p expiring 6/21. Not financial advice.
Musk Pay Package is a lose/lose for TSLA
byu/red1990corvette inwallstreetbets
Posted by red1990corvette
43 Comments
He would OD on Ketamine 
Musk shifting his focused to his other companies would be the best thing that has ever happened to tesla lol
Wouldn’t this kinda be semi baked in since we know the potential outcomes of both sides?
Meh. If the dude leaves Tesla the shares will go up like a rocket.
It’s like an NBA max contract for a tier 2 star. FWIW I agree with your outlook, but I fear there’s a chance for the stock to pop slightly on approval news
Inverting you
Give him da payout for more memestocks
Tesla is the next WeWork. Their cars are outdated, overpriced compared to peers. The future are either hybrids or solid state batteries that charge in 15 mins. Promised self driving taxis by 2018, nope. Promised AI and robots, nope, thats NVDA and X. The company is burning through cash. Missed last 3 earnings and will miss the next.
Going to grab some popcorn and watch from a distance as Tesla fanboys try to defend a burning company. Once Elon leaves Tesla, it will become the next Ford.
The company was never half as valuable as it looked, the value was coming from Musk’s ability to sell futurism hype and memes, and I think the shelf life on that has expired. Overall sentiment towards electric vehicles seems to be turning negative, TSLA looks to be locked out of China soon. Most people here made good money on it, but I think the good old days have come and gone.
How exactly is this “trying to extract as much value as he can from a dying company”. It’s a package designed in 2018 when the company was worth 1/10 of its current valuation. Its not a new deal.
You have to rip the bandaid. Tesla does not have a future with Musk. Without the hype machine the stock will fall, but that will happen either way eventually.
How’d you go ahead and make this political? Lmao we all know many dems and many reps that love and many that hate him both sides of the aisles. Stop creating false controversies
Ive got a 185p for july 13, lol. Hoping to get out of it as soon as possible, and maybe cut my losses on Arm
F that guy. Tesla needs that money for R&D and growth.
Musk adds no value to Tesla, it’s the complete opposite. All they need is a visionary FULL TIME CEO that doesn’t alienate potential consumers. When it comes to politics, he needs stay in the center, act like he got some sense and not say crazy shit like, “I am a free speech absolutist” or align himself with people that have no morals. Get that clown out of here!
Seeing how bearish and hostile WSB is to this pay package, it will probably pass with overwhelming support 😂.
You have to be beyond stupid to vote for this unless you are Elon musk or his brother.
Elon made the wrong call and that’s on him. If he focus on other companies like Twitter that’s a benefit for Tesla lol. His image is causing the problem because most of ev buyers are leftist.
Hey sorry im not able to contribute much to the conversation but im really trying my best to learn the stock lingo, when he says 6 contracts of the TSLA 175p expiring 6/21 that means he’s got 6 put options that profit based on how far the stock drops below $175 correct? Sorry if this is a dumb question im still new and just trying to learn my way around
If he leaves the company will do MUCH better. But it will take about 18 months to start to see It
This was my thinking also, but in this case, why would the market react to the vote at all?
the dilution already happened
So glad I sold mine
Show us your positions. This is some bullshit post without proof.
Btw even if it is approved by shareholders he’ll have to get through the courts before actually being issued the options.
So, puts?
musk is not worth $50B for a payday, no one is. The fact is its egregious, if it was like $5B ok maybe but lets fucking be real. Most people dont even have the ability to comprehend 5 billion dollars let alone 50.
if you earned 100k per year it would take you 50,000 years to earn $5b and yes that means it would take you 500,000 years at 50 billion.
its an utterly absurd amount of money.
Board sucks. Should ask Musk to move down to President and let someone else come in as CEO.
I was looking at some very nice December 2024 put options for 80 strike.
They were cheap.
Still watching for now. But tempted..
A is good for $TSLA short-term. I think retail will find the outcome as the buy signal.
Tesla under $100 a share end of year
Tesla is in trouble, but when will the stock market hive mind finally get it? Difficult to time such things…
I just sold most of my Tesla. Already lost a lot in them (16k or so). You can see the unsold Teslas from space. They rode a hype train but I don’t see them going anywhere else. NVDA is where it’s at
>Musk has been the primary driving force behind Tesla
Early on, I think he was adding value, but not anymore. Tesla might take a short-term hit (they are still significantly overvalued), but getting rid of Musk is the only path to recovery.
* Musk has presided over Tesla becoming the second worst-performing stock in the S&P 500
* Constant lying about FSD and vaporware robo-taxis is resulting in legal liability
* Tesla Semi has less than a third of the cargo capacity of a diesel truck, and it is being quietly killed
* Announced new Roadster in 2017, still no hint of delivery date
* Alt-right tweets have alienated Tesla’s core demographic
* Musk fired the Supercharger team just as charging contracts are becoming a significant revenue source
* Musk got rid of Lidar and Radar over the objections of his engineers, dooming FSD to permanent vaporware status
* The Cybertruck is set to be a costly failure
* Lineup of cars is dated due to neglect, necessitating price cuts
* Focus on embarrassingly bad humanoid robots and AI hype is a big distraction from the core business
>He has threatened to develop AI at one of his other companies
Who cares? Musk can’t steal Tesla property as he goes out the door. He has zero specific skills around AI, other than the willingness to write huge checks.
I kinda agree with your sentiment OP. Kinda feels like the market is flat just waiting for the vote. I think it’s bullish if it’s rejected as then institutions maybe buy in to Tesla as they’ve got what they want. I don’t think Elon is critical to Tesla’s success (if anything he’s a hindrance). If he throws a strop, gets replaced with someone competent then Tesla outlook good imo. Opposite true if deal voted through
They should tie it to him designing a car that doesn’t look like a drug mule shit out their condom.
Imagine being a part time Ceo and demanding a raise
AlREadY pRIceD In.
The way he acts is a lose lose for $TSLA.
A silly question: How much approval rate Musk need? **50%?**
I don’t get it. Is Musk going to code the AI himself? They can do that shit without him.
How would Musk exclude other businesses, like Neuralink from TSLA? He is balls deep and desperate to get approved. Shareholders know that, but hold him for marketing basically. He gives nothi g for TSLA sitting on twitter and podcasts.
💯
If it were a lose lose the stock would be tanking