> did not win or lose anything
Is this true? Would there not be dilution?
Is this true? Would there not be dilution?
Just because some people have astronomical returns doesn't mean everyone received the same.
Sure, the company would still be worth $10. But there are now 20 shares outstanding. Everybody except the guy who got 10 shares would see their shares fall in value from $1 to 50 cents.
Basically, issuing stock to one person has the effect, mutatis mutants, of transferring wealth from all the other shareholders to the person who got the new stock.
Any money or shares Tesla pays to Elon is money or shares that could instead be used to pay dividends to the shareholders or to buy back shares, which increases the value of all the shares that have not been bought back.
The dividends/buybacks are irrelevant. Anyone could sue to cut down dividends to increase buybacks or vice versa but thats besides the issue
The whole conversation about dilution is irrelevant: elon was granted stock options, there would be no issuance of new stock
...man if you really feel that way, can I interest you in some stock? I'm thinking about making a start-up...