I’m astounded that #Tesla shareholders voted to reinstate Musk’s $56B pay package.
I’m no CFO, but I think this pay package has to be made through the issuance of new TSLA stock—but without capital being infused in exchange. That means that values of existing shares of TSLA must be diluted. Since $56B is roughly 10% of Tesla’s current market cap of $580B, that means each share of TSLA must devalue by about 10% to balance the books. Right?
In other words, shareholders voted to devalue *their own shares* to transfer wealth to Musk.
Am I right? Someone with a finance major please check me.
Dave Rahardja /
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2024-06-14 07:02:56
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npub10wnp0q097e5z76rm838d9f59dz5lfvw2xvwvr32lnpye0vrdjfqqdrf0qmPublished at
2024-06-14 07:02:56Event JSON
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