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

(www.theguardian.com)
62 points jethronethro | 5 comments | 23 Oct 25 01:52 UTC | HN request time: 0.523s | source
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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.

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1. next_xibalba ◴[23 Oct 25 02:41 UTC] No.45677612[source]▶
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.
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2. bryanlarsen ◴[23 Oct 25 02:49 UTC] No.45677665[source]▶
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 everything else.
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3. next_xibalba ◴[23 Oct 25 03:03 UTC] No.45677751[source]▶
Also, the basic game theory is obvious. If it’s voted down, Musk might leave, in which case the stock price plummets.
4. unsnap_biceps ◴[23 Oct 25 03:13 UTC] No.45677801[source]▶
The board can modify those milestones and conditions, no?
5. Ekaros ◴[23 Oct 25 05:33 UTC] No.45678462[source]▶
Earn cool 19k on each of the 21 million cars sold? That is some hefty margins to get to those earnings... Especially when you have Chinese models to compete with.