Just prepping for what’s coming either way
His previous compensation package was already larger than the lifetime net profits of the company.
Well when his robots hit money will be irrelevant so what will it matter. Just make sure he gets his irrelevant trillion bucks first.
What profits? There were profits?
They profited about 15 billion USD in 2023. Before his political forays and improved Chinese competition Tesla was doing great.
Tesla has made about $45-$50 Billion in PROFIT (not revenue) since inception. About a third of that is from selling carbon credits. They've basically paid musk the same amount. He took all the profits. Now he wants $1T....
Lifetime profits are about $50B if you're curious. Musk has realized about the same amount (still has $XXX Billion unrealized)
I was referencing the article which says that this pay package will wipe out all the prior profits.
all it took was relying on moron retail voters thinking that every time the market cap increases they somehow have more profit to pay his 1 Trillion
The article is about the previous compensation package, but right when Tesla shareholders approved Elon's $1 trillion pay package, they also approved this (under point three): https://electrek.co/2025/11/06/tesla-tsla-shareholders-shoot-selves-in-foot-approve-musk-1-trillion-payday/ >Giving Musk 208 million shares with no strings attached, after he drained the employee stock reserve then held employee compensation hostage. As I understand it, these 208 million shares are in addition to other pay packages (either the $1 trillion one or the old one that is still tied up in the courts).
Damn it's like they want another court case to reverse the pay package decision
Wild to think how much of it was in carbon credits. Aren’t those mostly gone now under the Donald?
Ultimately he is the country’s biggest welfare queen, as those credits come from the US taxpayer.
Very irresponsible by the Board to push this new package so hard while the decision from the 2018 one, is still going on. If the judge upholds the lower courts decision and this wipes out most of their profits from the last few years. This Board should definitely be investigated for not upholding their fiduciary duty, to the shareholders.
So basically. Elon is going to sink Tesla either way. If not for his politics, it'll be for his greed for power. 😅
A lot of it’s also due to the $7500 rebates.
Comparing share price and profits in Tesla is a futile exercise
Getting granted shares in the future has nothing to do with taking historical profits
Congratulations for condensing so much irony in so few lines of text.
He's been granted hundreds of billions. $50B is approximately what he's realized. It's how he bought Twitter, funded starling and neuralink, said, bought the president...
Sure, he’s paid in stock based on share price performance milestones, not out of company profits.
Well he's a genius at making money, I'll give him that.
He’s not being paid in cash. HES BEING PAID IN STOCK!!!!!
Which are also gone now.
He can do both.
Yup. But your cake day is here.
No, they come from companies like Aston Martin that need to buy carbon credits as a result of having higher corporate average CO2 emissions than the legislated maximum in the EU. Buying carbon credits from Tesla is the reason they stopped making the Cygnet (look it up), which was a wasteful way of meeting emissions rules. Carbon credits are a good concept and helped kickstart the EV market in the 2010s, and they don't cost the taxpayer money, no need to badmouth it.
Tesla's profits would need to double every year for almost 7 years straight to make $1 trillion.
Thanks! I didn’t even notice!
Amazing how smart Musk is, he spent $44B on Twitter a company that barely makes money. Also I'm curious how much of that $50B for Tesla is from IRA EV tax incentives and carbon credits BOTH programs initiated by the government. He's a welfare queen
But in the end it's still a government mandated program.
It's about 1/3 carbon credits
I look at the $1 trillion package as the shiny object to distract from this other package.
Thanks I saw your other comment after I made mine
A credit is a tax expenditure. It is a Government payment funneled through the tax system. Corporate types love to ignore this reality.
Yeah, this whole thing is actually just an accounting exercise, which the Reuters article didn't explain very well. Back in 2018 the board awarded Musk a bunch of stock as part of his pay package. Tesla took a charge of $2.3 billion on their finances to cover that (companies are required to account for the cost of stock awards as part of their quarterly and annual financial reports). That is the payment that has been contested and voided by a court in Delaware. Now, if that ruling stands, Tesla has proposed an alternate, "smaller" pay package. But the value of Tesla stock has increased greatly in the past 7 years, so if Tesla has to provide alternate package they will have to take a charge of $26 billion to cover it. That's about half the profit Tesla has made in it's history. Tesla would have to take that charge spread over the next two years, or 8 quarters. 26/8 is $3,25 billion, which is more than Tesla's net income each quarter. So basically, if Tesla looses the case in Delaware (if the Judge's ruling is upheld) they will operate at a loss for the next two years. Unless Musk voluntarily refuses the stock award (which he can do). What do we think the odds are of Musk refusing his award?
Thus, incentivizing him to manipulate the stock price rather than make the company perform well.
Now they're incorporated in Texas, which has far fewer shareholder protections.
I’m currently at work so I’ll reply in detail later
Geez, how good if it was that easy.
The inevitable implosion is going to make Enron look like child's play. The difference is that everyone sees it coming but thinks they will be able to read the tea leaves and exit at just the right time.
"For comparison, $26 billion would equal more than half of Tesla’s total net income since becoming profitable in 2019." Why have shareholders voted to make this buffoon a trillionaire?
Because Musk made shareholders $1,200+ billion last time and now promises to make another $7,000+ billion.
Profits? Which ones? HALF of their income are American tax credits. It's in their earnings report!
Assuming that woupd happen now that the courts are under Trump. Elon didn't buy into this presidency out of the goodness of his heart. He wants an ROI.
Yep. All that meme stock pumping he does is just so he can work full time on his Twitter bot farm.
Every bubble eventually bursts. That's all TSLA is.
So was Bernie Madoff.
https://www.teslarati.com/elon-musk-teases-crazy-new-tesla-fsd-model-heres-when-its-coming/ stock shoots up 30%
how has it not happened yet? I really thought it would in 25... maybe it finally will in 26
Christ. I’d love a third of my pay to be welfare funded instead of half of it going in tax
The credits were passed on to consumers. A simple data point, the Dodge Challenger Hellcat base was not changed (electric steering was added) during its life cycle from 2015-2023. The difference in MSRP was $9042 without adding in additional dealer markup. That's largely due to the credits.
Yea I just realized I never went back and replied. But you are correct. I’m just so sick and tired of the clickbait and the misinformation but what you said is exactly right I just wish they would have correctly stated that and not made it out to look like Elon was taking all the cash(profit) the company has made but the company will have to pay that $26b charge if the current one doesn’t stand and they have to use the new one which is just a piece of what they are going to pay him because they intend on doing additional 96 million share payments. This new smaller one is just a down payment. If the current plan doesn’t hold up they will just do a few smaller ones to pay Elon what he was owed
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