Tesla's Musk qualifies for $2.1B payday

reuters.com

14 points·theBashShell··5 comments

Last week he corrected people on this 'payday' usage, I think this is the same misusage.

He is allowed to buy the stock for this price, he does not have the right to sell it for 5 years, though.

So he pays taxes based on todays stock-price, but if it plummets he goes down with it getting nothing since he can't sell for 5 years.

So, sure, he's already rich and this will make his valuation much better. Over which he should pay taxes. But its not a payday in my view of the world when you can't actually buy anything for it since he can't sell those for 5 years.

He could use the stock as security for debt. That's a fairly standard practice by individuals who own a lot of stock in a company but don't want to show distrust by selling any.

Eventually this bubble will burst and a lot of people will be out of their money.

How long until reality kicks in? This can't go in for ever.

It's potentially not a bubble but a bet against other car manufacturers who are

a) supposedly five years behind Tesla on some of the EV technology b) struggling to catch up

So, either Tesla continues to gain market share and expand into the SUV and pickup market or they end up licencing their technology - a win either way. The clock is ticking in Europe as far as diesel bans coming into force so they don't have forever to just do business as usual.

I guess he'll be selling a bunch of Tesla shares to pay the tax on those options.

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