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Posted On: 07/21/2018 2:29:04 PM
Post# of 1011
TSLA. Musk new contract. Tesla often cites "great man risk" in its financial filing, addressing the possibility that losing Musk would be a disaster for the company.
Musk just signed on for another 10 years, and the Tesla board has tied his pay package to a $650-billion market cap (it's just over $50 billion now), so his departure probably isn't imminent.
Folks who are exceptionally passionate about Tesla have a hard time separating Musk from the company — an investment in Tesla is a stake in Musk, the argument goes. And while that might have been true in Tesla's seat-of-the-pants early years, the company is 15 years old. If it can actually hit 250,000-500,000 in yearly Model 3 production and maintain Model S and X at 100,000, it's cash-flow pattern will be like any other significant automaker.
The business won't be about vision — it will be about balancing production against demand and trying to figure out to convert a gross-profit margin to a net margin.
This is why Musk's out-there conduct over the past six months hasn't really dented Tesla's stock price: he matters, but in the big picture, he isn't the entire company, which now has over 30,000 employees.
The Tesla machine now runs on its own.
Musk just signed on for another 10 years, and the Tesla board has tied his pay package to a $650-billion market cap (it's just over $50 billion now), so his departure probably isn't imminent.
Folks who are exceptionally passionate about Tesla have a hard time separating Musk from the company — an investment in Tesla is a stake in Musk, the argument goes. And while that might have been true in Tesla's seat-of-the-pants early years, the company is 15 years old. If it can actually hit 250,000-500,000 in yearly Model 3 production and maintain Model S and X at 100,000, it's cash-flow pattern will be like any other significant automaker.
The business won't be about vision — it will be about balancing production against demand and trying to figure out to convert a gross-profit margin to a net margin.
This is why Musk's out-there conduct over the past six months hasn't really dented Tesla's stock price: he matters, but in the big picture, he isn't the entire company, which now has over 30,000 employees.
The Tesla machine now runs on its own.
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