Tesla investors are facing a controversial situation as CEO Elon Musk considers reincorporating the company in Texas. A Delaware judge recently ruled that Musk's 2018 pay package, which is now worth about $50 billion, was excessive. Critics argue that Tesla's profitability is questionable without overstated regulatory credits and that its earnings per share (EPS) are projected to decline in the coming years, with estimates suggesting about $2 EPS in 2024 and less than $2 EPS by 2025/6. The company's reliance on the Chinese market, which accounts for 50% to 75% of its revenue, and regulatory credits and interest, contributing around 30%, is also under scrutiny. Some investors and analysts are predicting a significant drop in Tesla's stock value, with claims that it could crash to $23. Amidst the negative sentiment and media scrutiny, Cathie Wood of ARK Invest defended Musk, calling the court's decision an assault on investor rights and an insult to the Board of Directors of a successful American company. The situation raises concerns about the future of Tesla as a mostly-Chinese publicly traded RICO, with retail investors potentially losing out.
In its ruling against @elonmusk's pay-for-performance compensation package, Delaware seems to question whether it was fair to all shareholders. Given the results five years later, with $TSLA up ~13-fold from the time of the vote to its peak in November 2021 and still up 9-fold…
I believe the Delaware court decision, forcing #Tesla to void the March 2018 vote on Elon Musk’s performance-based pay package, is un-American, an assault on investor rights, and an insult to the Board of Directors of one of the most stunningly successful companies in US history.
This is a hilarious exchange. (-$12k in a month) $TSLA https://t.co/HmtCqaLEvr
Media slowly Turning against $TSLA... mostly negative articles coming from all angles (on Fake Product, Range issues, FSD, Deliveries, Musk, Governance, Pricing, etc). 🚨🚨🚨 https://t.co/nRR99T2iCP
$TSLA / @elonmusk - Hype & Dump... $TSLA will crash to $23 says @GordonJohnson19. He'll probably be right...eventually. Have you read $TSLA 10k (link below)? Can you see that $TSLA is a permanently impaired <$2eps house of cards (& publicly traded RICO) https://t.co/zwxPnGDYIa https://t.co/Vc6p9OJIse
$TSLA / @elonmusk - A Publicly Traded RICO? First @WSJ article to mention Enron & Tesla together… How does $TSLA make its money @bethanymac12 @WallStCynic ? China is +50% -75%? Reg credits and interest is +30%? $TSLA is permanently impaired <$2eps before actg shenanigans!? https://t.co/xGvhZzfR6g
$TSLA / @elonmusk - Connect the dots... And follow the EARNINGS… 2020: $0.25; 2021: +$1; 2022: +$4; 2023: +$3; 2024E: ~$2; 2025/6E: <$2. $TSLA EPS were supposed to grow to +$10...🤷♂️ $TSLA is permanently impaired < $2eps...🤦♂️ Under Musk, $TSLA is a publicly traded RICO?👀 https://t.co/RxQbBSDZpi
A Delaware judge this week ruled Elon Musk's 2018 pay package — now worth about $50 billion — went too far. Should Musk have to give up his right to the stock? Subscribe to the newsletter to get two sides of tough issues every week: https://t.co/iAoPHFfTql https://t.co/iDyUNViKbL
$TSLA / @elonmusk - Connect the dots... Good Saturday Read... A good reminder that ex-overstated regulatory credits, $TSLA is a barely profitable, mostly-Chinese, publicly traded RICO... Retail investors lose (as always) @SDNYnews? https://t.co/vFz6PvPvzV h/t @Tweetermeyer https://t.co/zLTovKMBlo
Finally caught up with the events that happened with @elonmusk and the compensation plan at @Tesla - probably one of the most unfair and unjust use of the courts i've seen in a long time. Why would anyone start a company in Delaware after this? Let alone be publicly listed. :(
**Tesla investors should think twice about Elon Musk’s plan to reincorporate in Texas** $TSLA @markets