Elon Musk is either brave or stupid

#51
#51
BigOrangeMojo said:
Let's say a shareholder brings up an ESG and DEI initiative. A large majority of the shareholders vote against it. The shareholders who brought the initiatives up sue and a judge forces the Company to implement the DEI and ESG initiatives. We would have a problem, right?
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Can you bring your accounting knowledge to the discussion.
NashVol11 said:
Imagine overpaying for Twitter, cratering its value and blaming the Jews, and then your sycophants call you "brave" for it lol. Pretty good gig
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Elon pays (my numbers) 44B for Twitter. Twitter is a public company. Twitter is closed. Now X is a private compnay worth 4B.
Does the 40B loss carry forward to future taxes Elon or his businesses owes?
ARe there any tax advantage from converting twitter from a publicly traded company to X, a private company?
 
#52
#52
n_huffhines said:
Of course I'm against overreach. It doesn't matter who writes it. You are accepting it when you become a shareholder.
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Did the individuals in the small group who filed the lawsuit accept the contract when they became shareholder? Without knowing the contract or the threshold for compensation incentives, I have no idea what was or was not in the agreement or if those conditions were met. But is seems odd that the majority of shareholders didn't file or join the grievance and that the ruling wasn't based on failure to meet the thresholds.

But like I said earlier, I am late to the party and haven't looked into it beyond this thread.
 
#53
#53
n_huffhines said:
Maybe I'm not understanding what has happened, but the shareholders agreed to a contract that would be enforced by the courts and now the courts are enforcing it. It could have been a non-government arbitrator, but there has to be somebody to enforce the contract when there are disputes between shareholders.
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In 2018, over 80% of Tesla's shareholders approved Musk's compensation package. It did not pay him a salary or bonus but gave him additional equity if Tesla hit certain goals by 2028. The biggest goal was to increase market cap by 1100% during that timeframe.

A shareholder owning 9 shares of stock sued saying the board was not looking out for interest of shareholders, etc.

In 3 years, Tesla's stock increased 2000% and Musk got his equity award since the goals were met.

The judge overturned package since it wasn't in best interest of shareholders...
 
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#54
#54
BigOrangeMojo said:
In 2018, over 80% of Tesla's shareholders approved Musk's compensation package. It did not pay him a salary or bonus but gave him additional equity if Tesla hit certain goals by 2028. The biggest goal was to increase market cap by 1100% during that timeframe.

A shareholder owning 9 shares of stock sued saying the board was not looking out for interest of shareholders, etc.

In 3 years, Tesla's stock increased 2000% and Musk got his equity award since the goals were met.

The judge overturned package since it wasn't in best interest of shareholders...
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That seems petty, and frivolous to me. And, the ruling seems like judicial over reach.
 
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#55
#55
BigOrangeMojo said:
In 2018, over 80% of Tesla's shareholders approved Musk's compensation package. It did not pay him a salary or bonus but gave him additional equity if Tesla hit certain goals by 2028. The biggest goal was to increase market cap by 1100% during that timeframe.

A shareholder owning 9 shares of stock sued saying the board was not looking out for interest of shareholders, etc.

In 3 years, Tesla's stock increased 2000% and Musk got his equity award since the goals were met.

The judge overturned package since it wasn't in best interest of shareholders...
Click to expand...

I have a vision of this shareholder's political leanings.
 
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#56
#56
McDad said:
Can you bring your accounting knowledge to the discussion.

Elon pays (my numbers) 44B for Twitter. Twitter is a public company. Twitter is closed. Now X is a private compnay worth 4B.
Does the 40B loss carry forward to future taxes Elon or his businesses owes?
ARe there any tax advantage from converting twitter from a publicly traded company to X, a private company?
Click to expand...

Elon’s basis for his Twittter investment is $44B. It’s not a $40B loss on his taxes unless he sells X.

If Musk’s purchase of Twitter is treated as an asset purchase rather than a stock purchase he (the X entity) can write off any recorded goodwill over a decade or two. I’d assume that the purchase was recorded as an asset purchase and there’s a lot of goodwill that was recorded on X’s books.

Check me on this. I’m a non-practicing CPA, but my area was mostly information systems, budgeting, variance analysis, etc.
 
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#58
#58
It’s funny watching the ones in here that accuse some of you of lining up to cheerlead for Elon…. Constantly line up to cheerlead against Elon.
 
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#59
#59
McDad said:
Did the individuals in the small group who filed the lawsuit accept the contract when they became shareholder? Without knowing the contract or the threshold for compensation incentives, I have no idea what was or was not in the agreement or if those conditions were met. But is seems odd that the majority of shareholders didn't file or join the grievance and that the ruling wasn't based on failure to meet the thresholds.

But like I said earlier, I am late to the party and haven't looked into it beyond this thread.
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I would assume so, yes.

I'm hoping other people know more about it than I do, and hopefully they can better explain what's happening. It seems like everybody's just talking about what they gathered from reading a few snippets, and I don't really care enough about this to dig in.

FTR, I am not out to get Musk. It gave me no joy to find his bonus got denied. I'm not like that. I just want Musk to act right because good stuff happens when he does. I'm not out for blood. I'm just out for laughs, making fun of bad/stupid behavior. I want Musk to be successful (not in terms of what he's paid, but in terms of what he produces) because when he is successful, it's because he's making good choices and providing value. I want him to turn Twitter around. I don't want it to suck just because he's been a douche. I want Tesla to be healthy. It's a cool product and good people are invested in it. I want to go to Mars. I'm literally a StarLink customer (my mountain resort investment we talked about).
 
#63
#63
BigOrangeMojo said:
In 2018, over 80% of Tesla's shareholders approved Musk's compensation package. It did not pay him a salary or bonus but gave him additional equity if Tesla hit certain goals by 2028. The biggest goal was to increase market cap by 1100% during that timeframe.

A shareholder owning 9 shares of stock sued saying the board was not looking out for interest of shareholders, etc.

In 3 years, Tesla's stock increased 2000% and Musk got his equity award since the goals were met.

The judge overturned package since it wasn't in best interest of shareholders...
Click to expand...
heh :)
 
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