Comment on What are the practical effects of the recent court ruling nullifying Musk's Tesla pay package?
520@kbin.social 11 months agoSo since he hasn’t executed on the options, there’s nothing he has to actually pay back, but he also won’t be allowed to exercise those options and purchase what would have been $56 billion worth of dirt cheap stocks?
Yes. Options have expiry dates. Him letting the options expire cuts off those cheap stocks for him.
Net worth calculations take all known assets into account, this includes options.
zkfcfbzr@lemmy.world 11 months ago
Thanks. Do you happen to know why he wouldn’t have executed the options before this suit? Like you mention they expire - surely he never had any intention of letting them expire though? Was there some benefit to waiting them out?
520@kbin.social 11 months ago
It's Elon. There are a wealth of possible reasons, ranging from actually reasonable to 'it sounded better in my head'.
One possibility is that he may have been attempting he usual market manipulation shenanigans; wherever he publicly goes in the market, he is followed by millions of worshipping fanboys.
He could also be thinking the price would plummet below the contract price (or that he could make it do so then raise it again).
Or maybe he didn't like the fact that he'd have to hold them for 5 years before being able to do what he wanted with. Elon is not known to simply abide by trading regulations.
Maybe he wanted a tax write off?
Or he could have simply forgot. This is Elon, after all.
zkfcfbzr@lemmy.world 11 months ago
Thanks for the speculation. It still seems a bit odd, especially considering he’s asked the board to give him a 25% stake in the company recently.
I wonder if he did anything like back loans with those options, and if he did, what the consequences would be now that he’s not going to have them anymore?