Ross Gerber Says TSLA Stock Dilution Would Be Equivalent To $275 Million/Day If Elon Musk's Pay Package Passes

Benzinga

Gerber Kawasaki’s Ross Gerber warned that Elon Musk’s trillion-dollar Tesla pay package could heavily dilute shareholder value, estimating the impact at $275 million per day. Norway’s sovereign wealth fund, CalPERS, and proxy firm Glass Lewis all oppose the plan, citing dilution and key-person risk, while Cathie Wood and others argue it will pass decisively.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Investment firm Gerber Kawasaki's co-founder Ross Gerber warned that Elon Musk's trillion-dollar

00:06Tesla pay package could dilute shareholder value. Gerber said the dilution would be equivalent to

00:11$275 million per day according to a post on X. Norway's sovereign wealth fund, which holds a

00:171.12% stake in Tesla for $17 billion, said it would vote against the plan,

00:23setting concerns about dilution and key person risk. Proxy advisor Glass-Lewis echoed these

00:27warnings, as did CalPERS, which holds $2.3 billion in Tesla shares. Musk had earned billions for the

00:33pay package, emitting some of the easier milestones, even if Tesla fails to achieve all the goals set

00:38by the board. Musk has dismissed critics, calling Glass-Lewis and ISS corporate terrorists.

00:44The plan has received backing from the Florida State Board of Administration, Charles Schwab,

00:48and ARK Invest CEO Kathy Wood, who predicts the proposal will pass decisively.

00:52For all things money, visit Benzinga.com.

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