So, while Elon Musk is an asshole, and these terms are awful, there is more to it:
They involve stock awards, which are given by the company to the employee. They can either be options (which give you a choice to buy at a certain price, and presumably you wouldn’t do that unless you can sell for higher price), or outright stock grants . They are given as part of compensation, and vest on a set timetable. (So, if someone was given 1000 shares, the employee would still see 1000 shares in some account, but they may only be able to access 100 of them every six months).
Then, the other wrinkle is that SpaceX is a private company. That means that employees can’t just go sell their shares on the open market. So SpaceX graciously offers to buy back these private shares at whatever they think they are worth at the time. While this sounds fishy, the only other real alternative is for the employees to hold on to the shares and sell them if they go public…
… However, simply receiving the shares when they vest is a taxable event. So if SpaceX didn’t offer some way for mere mortals to turn their shares to cash, then in effect they would be saddling them with an enormous tax burden and no way to raise the cash to pay it. So they king of have to do it this way.
Do they really need to confiscate an employees shares if they hurt Elon’s fee-fees? Of course not. But that’s the only dumb bit here. The rest is pretty standard for a private company who attracts workers with stock benefits.
Hypx@fedia.io 1 month ago
SpaceX, from a financial standpoint, is just an elaborate Ponzi scheme for Musk, who treats all of his companies as his private fiefdom and personal piggy bank. In reality, none of them are genuinely profitable, and depend on government subsidies and capital investments to survive. The goal is to just build a barely viable business and then scam people with bullshit promises. Any real cash flow is immediately converted into cash for his personal use, and from time to time he uses it prop up another of his ventures. Very likely, all of this will come crashing down at some point, and it will be revealed that his companies are nothing like what they seem.
ringwraithfish@startrek.website 1 month ago
I feel like Twitter (I will always deadname it) was the beginning of the end for him. Unfortunately, things like this can take years or decades to resolve, but whereas 5 years ago he had the midas touch and could do no wrong now there seems to be nothing but a stream of negative news about him.
Time will tell
Sterile_Technique@lemmy.world 1 month ago
Naw, imho it was the Thai kiddy-submarine incident. He seemed at least semi-plausibly not horrible up until then; but then firmly established himself as just another piece of shit billionaire when he couldn’t handle some diver stealing the spotlight from him.
Hypx@fedia.io 1 month ago
The "midas touch" is basically just securities fraud. Something he can't get away with forever.
Cyclist@lemmy.world 1 month ago
I would argue that SpaceX is now to important to NASA, and therefore the US government, to be allowed to fail. It may not be under Elon’s control, it may not be called SpaceX, but it will continue to exist.
Hypx@fedia.io 1 month ago
Then it would be another Boeing, Lockheed Martin, Northrop Grumman, etc.
jacksilver@lemmy.world 5 weeks ago
They’ve literally made reusable boosters and have multiple operations to deploy satellites and go to the space station (not to mention starlink ) . While I’m not a Musk fan, those achievements are irrefutable. SpaceX may or may not be making money, but it’s a far cry from a ponzi scheme. It’s why so many are trying to copy their technological achievements.
Hypx@fedia.io 5 weeks ago
It is a Ponzi scheme from a financial sense. In the end, it's just a launch provider. It's not suddenly going to become the next Apple in terms of market value. But it is valued like that, and they were able to raise billions of dollars by lying about its potential business ventures.
dependencyinjection@discuss.tchncs.de 1 month ago
Not that I am doubting this, I just don’t know enough, but do you have any sources on all of what you’re saying?
Like I know the guys a scumbag, but I want to be accurate in what his scumbaggery entails.
Eyck_of_denesle@lemmy.zip 1 month ago
I agree but isn’t Tesla real and well selling, at least in the US. Wouldn’t it be profitable?
TheGrandNagus@lemmy.world 1 month ago
Tesla is certainly making a fair bit of money. Though it only got there because of a shitload of government help, both from the US and elsewhere.
Knightfox@lemmy.one 1 month ago
Eh, a quick Google search said that Tesla wasn’t profitable for 17 years and survived due to government subsidies and investor funding. After that they’ve been making ~$15 billion per year and sold around 1.3 million cars worldwide per year.
In contrast Toyota sold 10.3 million vehicles and made $61 billion in profit.
As with their 17 years of unprofitable business they are currently more proportionally profitable, but a big portion of that is Musk fanboys and limited supply. If they actually started selling more cars they probably wouldn’t be as proportionally profitable.
Additionally, Tesla is supposedly becoming less profitable due to several factors including not making a new model in 10 years, reports that they fraudulently marketed features (being sneaky with how range is calculated so that the true range is way less than advertised), and Elon’s antics hurting sales. Elon’s antics are a big deal, some people who wanted Teslas before don’t want them anymore because they don’t want to be associated with him (like flying a Gadsden Flag in the mid 2000s vs now).
Elon’s antics don’t stop there, he’s also hurt the investor’s opinion as well. A big reason Tesla’s stock was so high is because people were buying them and not selling them. This caused their price to stay super high, but when Elon bought Twitter he sold a ton of stock. The price was at an all time high over $400 per share, his selling cratered it to ~$115, and is currently around $165. Investors don’t like it when the owner of a company single handedly tanks their investment so the owner can make a bad investment, even more so when the writing on the wall says he’ll sell even more of the stock to fund the bad investment.