DarkRange55
We are now gods but for the wisdom
- Oct 15, 2023
- 2,059
Tesla has filed a document with the SEC outlining their new CEO equity incentive plan. And if Musk meets these milestones he will become a trillionaire. But I think a lot of people are missing what is actually happening here. He's not receiving a trillion dollars in cash. He is going to potentially, possibly maybe receive a trillion dollars in stock. It's all equity rewards which also dilutes you as the shareholder.
Here is the actual document:
Section - "2025 CEO Performance-Based Restricted Stock Agreement"
My advice, never trust the news. It's always full of crap. They never go into details, always go to the source documents (above).
"Tesla Inc. hereby grants to Participant Elon an award of restricted stock… Any capitalized term that is used but not defined… has the meaning assigned in Part II…"
He has many very different milestones he must reach to receive all 423,743,904 shares. Market capitalization milestones and operational milestones. Right now Tesla's total market capitalization is $1.13 trillion. These stock awards require that Tesla's market cap crosses a certain value. It's divided into 12 different tranches. In order to get the first 35 million shares Tesla has to reach a market cap of $2 trillion so it almost has to double and achieve one out of the 12 operational milestones. If it reaches $2.5 trillion then he gets 35 million more shares. And so on all the way to $8.5 trillion. If the value of Tesla is $8.5 trillion and he owns 25% of it, he'd have $2 trillion dollars worth of value, of net worth because of his ownership. $8.5 trillion is about 8X where it is now and about 4X what Nvidia is right now.
The first operational milestone is 20 million vehicles delivered. I think they've delivered over 7.25 million so far. Their sales are flattening and going down and they're loosing market share. The car part of the business is not doing well. So it will be tough. The next milestone is 10 million active FSD subscriptions. If the take rate is only 10%, if only 10% of Tesla drivers have an FSD subscription then you would need 100 million cars on the road. Next 1 million bots delivered. So far zero Optimus have been delivered. 1 million robotaxis in commercial operation. They have some pilot programs. Then they have multiple EBITDA requirements: $50 billion, $80 billion, $130 billion, all the way to $400 billion of adjusted earnings before interest, taxes, depreciation and amortization. The trailing 12 months of EBITDA were 11 billion and you can see its actually trending down. For the near term it seems to have peaked out at $17 billion of adjusted EBITDA. If you look at their quarterly revenue, their revenue is contracting. Last quarter they had -11.78% YoY revenue growth.
stockanalysis.com
Musk could become a trillionaire. Pumping your stock to raise market cap is one thing. But it will be hard to pass those operational milestones.
Here is the actual document:
Section - "2025 CEO Performance-Based Restricted Stock Agreement"
My advice, never trust the news. It's always full of crap. They never go into details, always go to the source documents (above).
"Tesla Inc. hereby grants to Participant Elon an award of restricted stock… Any capitalized term that is used but not defined… has the meaning assigned in Part II…"
He has many very different milestones he must reach to receive all 423,743,904 shares. Market capitalization milestones and operational milestones. Right now Tesla's total market capitalization is $1.13 trillion. These stock awards require that Tesla's market cap crosses a certain value. It's divided into 12 different tranches. In order to get the first 35 million shares Tesla has to reach a market cap of $2 trillion so it almost has to double and achieve one out of the 12 operational milestones. If it reaches $2.5 trillion then he gets 35 million more shares. And so on all the way to $8.5 trillion. If the value of Tesla is $8.5 trillion and he owns 25% of it, he'd have $2 trillion dollars worth of value, of net worth because of his ownership. $8.5 trillion is about 8X where it is now and about 4X what Nvidia is right now.
The first operational milestone is 20 million vehicles delivered. I think they've delivered over 7.25 million so far. Their sales are flattening and going down and they're loosing market share. The car part of the business is not doing well. So it will be tough. The next milestone is 10 million active FSD subscriptions. If the take rate is only 10%, if only 10% of Tesla drivers have an FSD subscription then you would need 100 million cars on the road. Next 1 million bots delivered. So far zero Optimus have been delivered. 1 million robotaxis in commercial operation. They have some pilot programs. Then they have multiple EBITDA requirements: $50 billion, $80 billion, $130 billion, all the way to $400 billion of adjusted earnings before interest, taxes, depreciation and amortization. The trailing 12 months of EBITDA were 11 billion and you can see its actually trending down. For the near term it seems to have peaked out at $17 billion of adjusted EBITDA. If you look at their quarterly revenue, their revenue is contracting. Last quarter they had -11.78% YoY revenue growth.
Tesla (TSLA) Stock Price & Overview
A detailed overview of Tesla, Inc. (TSLA) stock, including real-time price, chart, key statistics, news, and more.
stockanalysis.com
Musk could become a trillionaire. Pumping your stock to raise market cap is one thing. But it will be hard to pass those operational milestones.
