Register and share your invite link to earn from video plays and referrals.

Benzinga
@Benzinga
Financial News, Data & Education 💸
Joined June 2009
1.3K Following    340.6K Followers
Elon Musk could receive a payout worth as much as $824 billion under a provision in Tesla’s ($TSLA) compensation package if the company is acquired or merged with another business such as SpaceX ($SPCX). Investor Ross Gerber reacted to the possibility by calling it “fantastical abundance.” The compensation plan was originally described as potentially worth around $1 trillion. However, the maximum value has reportedly fallen to about $824 billion because Tesla’s outstanding share count has increased since shareholders approved the package. Musk’s award is normally tied to performance milestones involving vehicle deliveries, Full Self-Driving subscriptions, Robotaxis, Optimus and other operating targets. A merger or acquisition could change how those requirements are treated. According to the report, half of the operating milestones could effectively be considered achieved in a takeover scenario. That would leave Tesla’s market-value targets as the main factor determining how much of the award Musk ultimately receives. The package also reportedly uses either Tesla’s acquisition price or its market value immediately before a deal, whichever is higher. A transaction valuing Tesla at roughly $8.5 trillion could potentially allow Musk to receive the full 424 million shares tied to the plan. Gerber’s comments come as investors continue debating Tesla’s long-term growth story. Future Fund’s Gary Black has questioned whether Tesla can successfully scale unsupervised autonomous driving and said investor confidence in the technology may be weakening. At the same time, Musk continues linking Tesla’s future with SpaceX technology. He recently argued that Starlink could eventually provide high-bandwidth connectivity to billions of vehicles worldwide.
Show more