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Tesla reports steep drop in profits despite US rush to buy electric vehicles

theguardian.com

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Re: Tesla reports steep drop in profits despite US rush to buy electric vehicles

#21

Post by lateforwork »

bpodgursky wrote: post #4
leptons wrote: post #3

>The earnings report comes at a sensitive time for Tesla and Musk, as the CEO is seeking investor approval for that unprecedented $1tn pay package in a vote next month. WTAF. I'm not sure who could think he deserves this much pay (other than himself), after tanking the brand.

The articles are stupid. It's up to $1T IF he raises the stock price ~7x. It's basically the board saying "uh, sure, if you earn us 8.5 trillion dollars, we'll give you a trillion of it". It's an absurdly high bar, and the board had no real incentive to not throw it out there. Honestly every board should do this. Why not.

8.5 trillion in 10 years, is 20% growth per year. For comparison S&P 500 grew 25% last year.

Re: Tesla reports steep drop in profits despite US rush to buy electric vehicles

#22

Post by randycupertino »

So much of their planned earnings was coupled with cozying up to the current political administration:

> The loss of EV credits as a result of Donald Trump’s One Big Beautiful Bill Act was a factor in the public breakup between Musk and the president and has continued to influence the company’s sales forecasts.

> Musk has also insulted Sean Duffy, the US transportation secretary, this week in a series of posts that included calling him “Sean Dummy” and reposting calls for him to be removed from his post. Duffy, who is also acting head of Nasa, stated on Monday that he would reopen the bidding for contracts related to the space agency’s Artemis moon mission because Musk’s SpaceX rocket company had fallen behind on its timelines for the project.

Re: Tesla reports steep drop in profits despite US rush to buy electric vehicles

#24

Post by next_xibalba »

bryanlarsen wrote: post #14
next_xibalba wrote: post #5

Earlier quoted context omitted.

It's almost entirely milestone/incentive based. Should Tesla continue on this trajectory, he won't see a dime. Tesla has to hit an $8 trillion market cap, deliver 20 million vehicles, and 1 million robotaxis, and $400 billion in adjusted earnings. Were Tesla to hit those numbers in the specified time frame, Musk's comp would be worth every penny to investors.

Yeah, I'd have no trouble voting for that $1T package. There are way too many conditions. There are lots of ways Musk doesn't get paid. The original $56B package was only revenue and stock price based. If it was like this one, it would also have been based on car deliveries, and solar installs, and stationary battery sales. He would have totally missed on the solar installs, despite being massively successful on ever…

Also, the basic game theory is obvious. If it’s voted down, Musk might leave, in which case the stock price plummets.

Re: Tesla reports steep drop in profits despite US rush to buy electric vehicles

#25

Post by unsnap_biceps »

neilv wrote: post #23

Is anyone buying Teslas in blue states, since Twitter/X, Nazi saluting, DOGE, etc.?

All states are purple. Of course there's folks in "blue" states that are buying Teslas. And there's folks in "red" states that are boycotting Tesla.

Re: Tesla reports steep drop in profits despite US rush to buy electric vehicles

#26

Post by unsnap_biceps »

next_xibalba wrote: post #5
leptons wrote: post #3

>The earnings report comes at a sensitive time for Tesla and Musk, as the CEO is seeking investor approval for that unprecedented $1tn pay package in a vote next month. WTAF. I'm not sure who could think he deserves this much pay (other than himself), after tanking the brand.

It's almost entirely milestone/incentive based. Should Tesla continue on this trajectory, he won't see a dime. Tesla has to hit an $8 trillion market cap, deliver 20 million vehicles, and 1 million robotaxis, and $400 billion in adjusted earnings. Were Tesla to hit those numbers in the specified time frame, Musk's comp would be worth every penny to investors.

The board can modify those milestones and conditions, no?

Re: Tesla reports steep drop in profits despite US rush to buy electric vehicles

#27

Post by musicale »

myko wrote: post #10
leptons wrote: post #3

>The earnings report comes at a sensitive time for Tesla and Musk, as the CEO is seeking investor approval for that unprecedented $1tn pay package in a vote next month. WTAF. I'm not sure who could think he deserves this much pay (other than himself), after tanking the brand.

The Nazi salute was the end of it for a lot of folks who had given him grace for awhile What a monumental fall

Perhaps they will buy a Ford or Volkswagen instead.

Re: Tesla reports steep drop in profits despite US rush to buy electric vehicles

#28

Post by ta9000 »

unsnap_biceps wrote: post #25
neilv wrote: post #23

Is anyone buying Teslas in blue states, since Twitter/X, Nazi saluting, DOGE, etc.?

All states are purple. Of course there's folks in "blue" states that are buying Teslas. And there's folks in "red" states that are boycotting Tesla.

Except for Wyoming.

Re: Tesla reports steep drop in profits despite US rush to buy electric vehicles

#29

Post by mindslight »

ta9000 wrote: post #28
unsnap_biceps wrote: post #25

Earlier quoted context omitted.

All states are purple. Of course there's folks in "blue" states that are buying Teslas. And there's folks in "red" states that are boycotting Tesla.

Except for Wyoming.

That's because the map just shows discrete pixels of blue/red, one for each person.
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