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Elon Musk taking billions while workers cut costs?

Elon Musk taking billions while workers cut costs?

Love the car. Want Tesla to thrive. Am anxiously watching to see the company become sustainable to take away a serious concern that many have. So it is disturbing to see that Elon Musk, while pleading for spending cuts, still takes comp and a LOT of it. Isn’t equity enough? https://www.nytimes.com/2019/05/24/business/highest-paid-ceos-2018.html?...

coleAK | 24. Mai 2019

Haha. And people want to volunteer at showrooms to help sell cars...

Magic 8 Ball | 24. Mai 2019

Their is plenty of money in endless wells. Elon throwing out red meat and playing off the news is a fun tool to use to motivate the troops (I have seen many CEO's use this over and over again and it works every time).

ILoveMyModel3 | 24. Mai 2019

It's his company and his salary and that's none of my business. if the workers don't like it they have the options to find another.

hokiegir1 | 24. Mai 2019

"Sure, the multibillion headline number was big enough to appease the gods, but the award was structured in such a way that Tesla would have to reach highly ambitious milestones for Mr. Musk to receive any of it. Tesla’s market capitalization is now $35 billion. To gain all the options in the award, its market value would have to increase 18 times over, to $650 billion."

I'd doubt they reached all of the milestones to grant the full package, so the final amount is likely less than the "contract".

Kary993 | 24. Mai 2019

Maybe I am reading this incorrectly but Musk is not getting anything near what is stated until Tesla hits much loftier goals. The article is saying that CEO's are getting paid too much for just doing the job they are suppose to be doing but are getting much more for doing things that should be in their basic job description. Unlike us, who do our jobs and get paid a lot less ;)

FifthOnLeft | 24. Mai 2019

Linked article with the breakdown of pay packages: https://www.nytimes.com/interactive/2019/business/highest-paid-ceos-2018...

In 2018 Musk earned $56K in salary, zero dollars in bonus, perks and stock (RSU I assume). The rest of $2.28B came from stock options, which I assume part of the compensation package approved long ago.

Note in 2017, he earned all of 5 cents while losing a lot of sleep and some of his sanity. He deserved a raise if you ask me.

Kary993 | 24. Mai 2019

@FifthOnLeft - Agree!

minervo.florida | 24. Mai 2019

ALL, ALL , yes ALL other CEO's need this kind of package, it is all growth bases or nothing. His package is totally unheard of.

And yet what do you say to Bezos, or so many others. Elon does more for the planet that all these others combined.

minervo.florida | 24. Mai 2019

In 2014 after owning our S for a year, Elon doubled the drivetrain and battery warranty and made it retroactive for all past cars produced, he is like no other.

https://www.teslarati.com/tesla-elon-musk-defense-venture-capitalist-cha...

ReD eXiLe ms us | 24. Mai 2019

An article from NYT. [IGNORE].

An article from LAT. [IGNORE].

An article from WSJ. [IGNORE].

An article from Consumer Reports. [IGNORE].

82bert | 24. Mai 2019

They’re working overtime to spread misinformation regarding Tesla/Musk. They see the writing on the wall that it’s now or never until Tesla’s exponential growth takes over.

hokiegir1 | 24. Mai 2019

Another source I normally don't read, but I had caught a snippit of the headline somewhere, and this was the top source when I went to read the details.

Short version: They are on-target to deliver over 91k cars in Q2, which breaks the prior Q4 2018 record. The Q2 losses will be significantly reduced over Q1 and they expect to return to profitability in Q3.

Remember (not mentioned in the article): Building a new facility in China costs money, which is reflected in the income statements. Growth requires money. That's why they can be pulling it in hand over fist and still not be in the black yet. But once it's running, they increase their capacity to pump out cars, which the article does say supply is still the constraint -- not demand as many would have investors believe.

And yet, I hadn't seen this anywhere and had to actually hunt it down....
https://www.fool.com/investing/2019/05/23/tesla-deliveries-may-surge-in-...

httran26 | 24. Mai 2019

Hold on. Isn't Elon's 2 billion compensation is based on if Tesla succeeds in 10 years. So in 10 years, he will get 2 billion or nothing at all.

https://www.theverge.com/2018/3/21/17147678/elon-musk-tesla-ceo-compensa...

rdavis | 24. Mai 2019

2 billion in options that he'll never see cause they're a far cry away from being a 650 billion dollar company.

So, let's state it the way it is. He's paid $ 56,000 per year and the rest is optioned to performance. Sounds a lot like a football contract to me.

let's also make sure to note that while many are running scared from the stock, he keeps pumping his own money into it and not selling to take profit from what he owns.

rdavis | 24. Mai 2019

And... apparently he doesn't accept the mandated 56k salary either... so he's really working for 100% performance based pay. Now, wouldn't it have been nice for the NYT to have mentioned that.... actually, wouldn't it be nice if all CEOs were paid in such a way...

ReD eXiLe ms us | 24. Mai 2019

rdavis: Yes. After ten years, from 2017, Elon Musk has the option to buy more shares of TSLA at a specific negotiated price point. There is no 'gift' or 'reward' that is granted to him at no charge, as some will attempt to convince us.

httran26 | 24. Mai 2019

Please let this thread die. The title is very misleading and untrue.

Neomaxizoomdweebie | 24. Mai 2019

I believe the president may be onto something when he says the NYT is fake news and is dying. The sooner the better.

dmanincali | 24. Mai 2019

Read it for yourself here: https://www.sec.gov/Archives/edgar/data/1318605/000119312518035345/d5247...

A lot has to go very right for him to see anything near $2B....including a $600B market cap and $175B in revenue.

ReD eXiLe ms us | 24. Mai 2019

Neomaxizoomdweebie: The NYT & LAT very obviously want Tesla to 'Pay to Play' and are [PEEVED] they do not. Tesla does not pay to advertise. Not in the pages of their publications, not on their respective websites. They are probably still reputable publications otherwise, but refuse to say anything good about the companies led by Elon Musk at all. To them, all news is BAD news regarding Tesla, SpaceX, SolarCity, or The Boring Company.

TabascoGuy | 24. Mai 2019

@hokiegir1 +1

Some of you just can't imagine how big this snowball will be when it gets to the bottom of the mountain.

lmorda2 | 28. Mai 2019

Well the disgruntled employee effect trickles down to the customer too... Like the day I went in for my test drive was the day after Elon announced all the stores were going to be closed. I felt awful for everyone in the store and the test drive was kind of a downer to be honest. We talked mostly about what was going to happen to everybody. It was kinda sad.

David N | 28. Mai 2019

I read Tesla’s response to that article, pretty much said that the article is very misleading, pretty much distorted facts, or as in today’s words “fake news”.
The article was meant to get hits, so they can say how great they are.