@elonmusk will be footing the bill, Charley, as he has since the beginning.

If Elon succeeds in growing $TSLA by >10x for all shareholders as of the date he agreed to this compensation package, he will earn the right to pay Tesla $7.1B cash to purchase these stock options.
/1 https://twitter.com/cgrantwsj/status/1304084217412845569
Under GAAP guidelines (using Black-Scholes), Tesla will expense a maximum of $2.283 billion against the income statement over the 10 years covered by the agreement which began March 21, 2018.

$0.7B has already hit as Elon made progress towards achieving the plan’s milestones.
If it costs shareholders anything, it’s a maximum of:

12% dilution of a company whose market cap he will have grown enormously
+$2.283 billion over 10 years in imaginary SBC GAAP expense on the P&L

... paired with $7.1B in real cash Elon will pay Tesla for his shares.
Tesla has been free cash flow positive and non-GAAP profitable for over 2 years.

Tesla has been GAAP profitable over the past year and will moving forward even after paying for Elon’s stock compensation because they are growing global sales volume and improving margins.
If you would like to know what I expect, here is my latest long-term tesla earnings forecast: https://twitter.com/icannot_enough/status/1292565823740092417
... and if you would like further information on how the 2018 CEO Performance Award works, see this thread:
/6 https://twitter.com/icannot_enough/status/1285906447381999623
You can follow @ICannot_Enough.
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