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

(www.theguardian.com)
62 points jethronethro | 10 comments | 23 Oct 25 01:52 UTC | HN request time: 0.87s | source | bottom
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leptons ◴[23 Oct 25 02:33 UTC] No.45677555[source]▶
>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.

replies(3): >>45677594 #>>45677612 #>>45677644 #
1. bpodgursky ◴[23 Oct 25 02:39 UTC] No.45677594[source]▶
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.

replies(2): >>45677623 #>>45677684 #
2. amanaplanacanal ◴[23 Oct 25 02:42 UTC] No.45677623[source]▶
From an outside perspective, it feels wrong that the goal isn't higher earnings but a higher stock price. They don't care about actually creating value, just keep inflating the bubble and you're golden.
replies(3): >>45677630 #>>45677661 #>>45680615 #
3. next_xibalba ◴[23 Oct 25 02:44 UTC] No.45677630[source]▶
There are multiple milestones. Earnings is one of them. So it's actually even harder than just an earnings target.
4. LanceH ◴[23 Oct 25 02:48 UTC] No.45677661[source]▶
If a trillion dollars is on the line, could the stock be manipulated to be higher than that for less than a trillion?
replies(2): >>45677677 #>>45681184 #
5. 3eb7988a1663 ◴[23 Oct 25 02:51 UTC] No.45677677{3}[source]▶
Other private Musk companies (SpaceX and xAI) just bought fleets of Cybertrucks. One may wonder what exactly they would do with so many vehicles other than boost Tesla's share price.
replies(1): >>45678899 #
6. lateforwork ◴[23 Oct 25 02:51 UTC] No.45677684[source]▶
8.5 trillion in 10 years, is 20% growth per year. For comparison S&P 500 grew 25% last year.
replies(1): >>45678731 #
7. r_lee ◴[23 Oct 25 06:13 UTC] No.45678731[source]▶
I don't believe we will have such growth at all in the next 10 years unless we get hyperinflation

growing 25% when a company is say 50-100b is a lot different than going towards 10 trillion

and valuations are already so stretched across the board

8. palmotea ◴[23 Oct 25 06:43 UTC] No.45678899{4}[source]▶
They need them for the Mars colony, duh. You can't drive a gas car on the moon.
9. ahaferburg ◴[23 Oct 25 11:25 UTC] No.45680615[source]▶
Welcome to the West? It's been like this for a while now here.
10. Zigurd ◴[23 Oct 25 12:45 UTC] No.45681184{3}[source]▶
Could TSLA be manipulated? With a priced earnings ratio of 300, the question is: how much more manipulated? How about all of the other fashy tech bros with ridiculous valuations in public and private companies?