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Why Musk will never get his trillion $ [View all]
These are the goals he must meet;
The pay package stands to give the CEO the control he sought, with as much as a 25% stake in the company. Unlocking all 12 tranches of Tesla stock, for the largest possible financial reward, will require the company's market cap to reach at least $8.5 trillion and profits of $400 billion, and for the company to meet product goals including 20 million car deliveries, 1 million robots sold, and 1 million robotaxis in operation. (Tesla's market cap is around $1.3 trillion currently and it reported $4.2 billion in earnings before interest, taxes, depreciation, and amortization for the third quarter.34)
Forget Tesla's terribly overinflated stock with a price to earnings at 400x.
Here are some links about Tesla's income.
https://www.macrotrends.net/stocks/charts/TSLA/tesla/net-income
https://www.alphaquery.com/stock/TSLA/earnings-history
Tesla income is actually declining. The Cybertruck is one of the biggest failures in car history, Tesla AI is a poor wannabe, and his driverless robotaxi is another promise that will take forever to get to market, if it ever does (he promissed driverless cars by 2020).
Tesla's best year was profits of $ 15 billion, now down to under $10. So with a car brand that is being shunned globally, and products that may never reach market. Tesla has to grow it's sales over 40x for Musk to earn this ridiculous pay out.
Tesla's best year was under 2 million cars sold worldwide. Does anybody see them reaching sales of automakers like Toyota or Honda?
For Tesla to reach the Market Cap in the goals it's current stock price of around $400 would have to reach almost $2000.
Tesla currently has a Price to Earnings ratio of over 300. In comparison, almost all other car makers have a PE of around 10. Nvidia, the AI Chip maker and darling of the stock market has one of around 50. So Tesla's stock price is predicated that it will grow 6 times more than Nvidia, who is actually making something people are buying.
All this money is predicated on a stock price that is based on a cult of personality and the foolishness of the investor class. The real numbers for Tesla income show a different picture.
Given Musk's track record of failed promises, empty concepts and actual failures. I don't see where Tesla pays him a trillion $.
*This is just a general overall view and not a in depth analysis. So my numbers could be off somewhat, but not enough to change my conclusions.
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