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Dilution related to Elon's 2018 package

AllNoise-NoSignal | 2025-12-20 15:58 | 50 views

"The 2018 pay deal provided Musk options to acquire about 304 million Tesla shares at a deeply discounted price if the company hit various milestones, which it did. The options represent around 9% of Tesla's outstanding stock." Am I correct in thinking that this decision to reinstate Elon's 2018 package can still be dilutive to the stock, as dilution occurs when the options are exercised, not when they are issued?

Comments (16)
SolutionWarm6576 2025-12-20 16:05

Wondering that myself. Were they set aside back when the package was approved, or do they issue new shares. I would think he would exercise because the value of the is very large now. And they are vested. I think either way, he has to exercise over the next few years or so, or they’ll expire worthless.

BankBackground2496 2025-12-20 16:06

Money was set aside to cover the package value but since the stock went way up I have no idea how that will work.  I the event of the pay package not being paid that money set aside could be paid as dividends.

SolutionWarm6576 2025-12-20 16:07

If the court upheld the lower courts ruling. That backup package would’ve kicked in. Which would’ve hit them immediately financially but the shares would be less dilutive over time. Could be wrong though.

SpreadingSolar 2025-12-20 16:15

8.61%.  He'll want to exercise those options this year.  Won't be able to sell till 2030 but will need to at least borrow against the stock to cover the tax bill from this 12 figure income event.

hobopwnzor 2025-12-20 16:25

It doesn't really matter if it was set aside or not. Ownership is calculated with outstanding shares and shares that were set aside aren't in that calculation. It's only publicly owned shares, not shares still in possession of the company

SolutionWarm6576 2025-12-20 16:45

Oh ok. Tyvm

gumnamaadmi 2025-12-20 17:06

Dilution? If anything suckers will pump the stock up by 10% with belief that trillion pay package will happen as well.

ryan_dfs 2025-12-20 19:25

EPS is usually based on fully diluted cap table. But Tesla doesn’t trade on EPS anyway so who cares

BajaRooster 2025-12-20 21:35

Can someone explain ELI5 why the man who says we wouldn’t need savings due to universal income? I’m still enjoying my Doge check.

Witty-Bear1120 2025-12-20 22:07

Of course it’s dilutive. Any shareholder other than Elon owns 9% less of the company now.

TormentedOne 2025-12-21 01:25

Hell yeah I'm on board. Elon has made me so much fucking money at this point. Pay the man!

Ontbijtkoek1 2025-12-21 12:00

By building the biggest bloody pyramid scheme in history. Bernie Madoff was fantastic till it wasn’t too.

the8bit 2025-12-21 13:07

He has been paid by Tesla. More than Tesla has made in revenue in its entire history. That seems problematic for running a good business

ArQ7777 2025-12-22 01:40

We are more likely to see 10% to 12% dilution.

BankBackground2496 2025-12-22 13:05

If you add up all profits at Tesla to date it matches the $54bn pay package.  Why should Musk take all profits?

Icy-person666 2025-12-22 22:38

Because he has took none of the risk, that was for the suckers.

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