The historic pay package made by board of directors of TSLA to Elon Musk surely is one of the hottest topics of the market recently. First of all, the writer needs to make some supplements for I had not asked the AI to show them.
Similar package with low level had been raised in Delaware but banned by the court because a small shareholder raised a court case that the package was harmful to small shareholders. Therefore, the headquarter of Tesla moved to Texas. In this state, if any shareholders wished to have any objections to the plan made by board of directors, must be up to 3% of share holding or else the court would not accept it. It is quite a hard job for small shareholders.
Even the whole package is divided into 12 tranches (periods), each tranche the market value must be stable for 30 days and cannot just hit one day and fall back meanwhile, the average of 6 months must also hit the target. That is a double guarantee. Meanwhile, after he got the shares as remuneration, he cannot sell them out at once, he had to wait for 7.5 years before selling. This is not easy; I had not asked the AI to speak out this point they had not talk about maybe they think not so important.
I specially asked them to point out “Is it easy or hard to hit the targets?” The answer is “It is extremely hard” …… moonshot …… However, a lot of people are thinking like me, it is really hard, but Elon Musk is a superman. Hopefully, he can do it so.
On last Friday, after market closing, Elon Musk bought shares of TSLA worth $1 billion. He just wants to show his confidence to face such a challenge to investors, shareholders and staff. The whole project is divided into 12 tranches. Honestly, not all tranches can come true on time. Practically, some stages can hit the target and some may be slower and left behind. Obviously, he wants the first stage can be done on time. He wants his first shot can be brilliant and splendid. If it is just he himself, it is really quite hard to fulfil the plan, therefore he also needs to inspire all staff and management level to be in high spirit. Thus, he shown his confidence by buying back the shares up to $1 billion.
On Monday market opening, it had a jumping gap up to $420. If Musk can hit the targets all his wealth will be equal to US$3 Trillion. What is the concept of $3 Trillion, it equals to the GDP of Japan or India today. That is the fourth or fifth largest country in the world.
Since December 2024, there were two hot stocks falling which were AMD and TSLA. A lot of people believe that the Trump effect could push up the market, so told people to buy at low, but I insisted not to buy these 2 stocks, even when falling people kept on saying to buy continuously. Until April 7th I entered into market and confirmed it is the bottom, so all other stocks can be purchased.
TSLA shown a Double-double bottom, or Complexed W-shape with 4 bottoms. Then went up but other stocks rocketed up and it is in hibernation. The pattern was in symmetrical triangle and later changed to upward channel. From hibernation to half awakening and half sleeping. Until the day before Employment Report, it is the last train to catch for buying.
So those that bought before Employment Report can enjoy the rise of 2 big white candlesticks and the jumping gap of Monday. Is it too risky to chase? Sure! That’s why I said should lock up stocks bought from March to August.
For those that missed the chance do not be discouraged, watch The Express of tomorrow.