Equilar’s Post

Elon Musk is the most consequential businessman in history. In 2018 he signed a new 10-year contract to continue as Tesla's CEO. He was already wealthy, had other interests that could use his attention and spoke of stepping away from Tesla. Tesla's market capitalization in January 2018 was $60B. They were losing money and experts questioned its viability as an ongoing business. Musk signed a groundbreaking, all-or-nothing, most skin in the game compensation plan in history. It was the ultimate "pay for performance" comp plan. Most experts were skeptical that he'd hit any of the performance levels. To get the full $55B incentive built into the package, Musk had to grow Tesla into one of the largest companies in history. The path from $60B to $650B seemed impossible. For each benchmark achieved, Musk received Tesla shares and had to hold for 5 years. The 5-year holding period prevents short-term gaming of stock price. Musk and Tesla surpassed $650B market cap in less than 3 years and briefly exceeded $1T several times since. Musk builds billion dollar companies while creating millionaire employees and investors. He is the most consequential businessman we've known. Below is the clip where CNBC broke the story on his 2018 comp plan. Andrew Ross Sorkin: "dare I say crazy" "perhaps the most radical compensation plan in history" "Impossible to game" "If, somehow magically, he would get the company to $650B - which is literally what the plan calls for, if you can believe this - he would collect the equivalent of about $55B" Unbelievably, not only did $TSLA get to $650B, it only took 3 years! We've never seen growth like this in history. This week a Delaware court voided the contract on grounds that "the board failed to exercise independence from Musk when it created the 2018 pay package". My opinion? We need more CEOs like Musk. CEOs that are truly paid for performance. Too many CEOs are the equivalent of annual "lottery winners" and aren't delivering for the company, employees or investors. Then they do stock buybacks to manipulate earnings per share so they hit incentive awards. Elon Musk's impact transcends the conventional boundaries of business leadership. #elonmusk #tesla #executivecompensation #leadership

One of the businesses I track… A year ago I started to believe ( and share in my circle of trust ) that I expect Tesla to file bankruptcy within 5 years and that Musk will follow himself within another 5 years ( presuming his ego doesn’t create some exis problem for him). Immutable laws of business are at play here- They lack the global infrastructure nec to compete with established, entrenched vendors (Ford,GM, Stellantis, BMW…) They lack the dealer network ( delivery). The products are not superior and in some cases may be quite dangerous. By many accounts, customer service and support are poor. The image of the company and its founder are not likable/positive for many people. There are many lessons here for business leaders. For me, I will continue to watch and see if I get proven wrong.

This Founder Slept on the Factory Floor. Today, His Company is Worth 700 Billion Dollars. Inspiring and motivating the team when their backs are against the wall is what makes True Leaders. You must’ve heard of Elon Musk. I mean who hasn’t? Musk has built Tesla from its ashes, quite literally. In 2008 Tesla was on the brink of collapse. Funding dried up, the global economy tanked due to the Financial Crisis. To make it worse the company was near bankruptcy. As if this was not enough, everybody had written Tesla off as a failed venture. Sounds insurmountable? But there were still some people who didn’t give up on the dream. It was Musk himself and his small but determined team. Musk rallied his team, not with empty promises, but with radical transparency. He was honest about the dead end the company was at, but he also exhibited exceptional belief in Tesla’s mission. Musk himself slept on the factory floor, thus he lead by shared sacrifice, not just speeches. This brought the entire team back up on their feet ready to face every challenge head-on. Steadily but surely Tesla clawed its way back. Musk made sure that the employees felt the impact of every small improvement, by celebrating the smales of wins. These wins no matter how small made the team believe that it was possible to come back from the brink. This is what charismatic leadership can do to a team! Thus, follow these to motivate and inspire your team when the going gets tough: 1. Encourage out-of-the-box thinking. 2. Be transparent, even when it's scary.  3. Focus on the purpose you set out with. 4. Recognize the smallest of wins, morale high. 5. Lead by example, show them you're together in it. Leading through challenges creates resilience and belief. It teaches you how to handle pressure when nothing is going right. Only a few are able to do it though. Are you one of them? #Tesla #ElonMusk #Leadership

WHAT HAPPENED: Elon Musk, ever the headline-maker, has managed to sway Tesla's stock price with his public remarks. This phenomenon showcases the significant impact charismatic leaders can have on their company's market valuation. WHY IT MATTERS: Musk's ability to move markets with his words is a stark reminder of the weight that CEOs' public statements carry in today's hyper-connected world. For better or worse, Musk's speeches are not just news—they're market movers.

🚨 Tesla Showdown! 🚨 Shareholders are about to vote on Elon Musk's controversial pay package amidst a potential company relocation! Will Musk's visionary leadership outweigh the mounting challenges? Discover the full scoop : https://lnkd.in/gnbBbvRQ #Tesla #ElonMusk #Leadership #Innovation #ShareholderVote #EVMarket #TechNews #BusinessLeadership #MarketChallenges

𝐌𝐨𝐧𝐞𝐲 𝐚𝐧𝐝 𝐏𝐨𝐰𝐞𝐫 𝐢𝐧 𝐋𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩: 𝐅𝐚𝐢𝐫 𝐂𝐨𝐦𝐩𝐞𝐧𝐬𝐚𝐭𝐢𝐨𝐧? 🚀 Is Elon Musk Really Worth $46 Billion? We need to take a closer look at power and compensation in leadership. 🤯 CEO compensation can be controversial, and Elon Musk’s $46 billion especially so. Should one person should be credited with the success of an entire company like Tesla? We need equitable reward systems and the importance of collaborative effort in achieving organisational success. 🤔 What do you think? Should there be limits on CEO compensation - either a hard cap or a ratio? #FutureOfLeadership #equity #CEO

Even Elon Musk Isn't Bulletproof: A Lesson from Tesla's $15 Billion Loss Even at the top, no one’s immune to setbacks. 🚨 After Tesla’s Cybercab reveal, Elon Musk’s net worth took a $15 billion hit due to market disappointment. 📉 If you’re making big promises, always be sure to deliver. 🛠 Stay sharp and protect your business! 💡  #ElonMusk #BusinessLessons #Tesla #MarketTrends #EntrepreneurMindset #BusinessGrowth #Leadership

Top Lessons From Tesla On Executive Pay: Tesla's shareholder meeting highlighted CEO Elon Musk’s compensation package, initially approved in 2018 but voided by a Delaware judge due to process issues, not fairness. Key takeaways: 1. Effective Oversight: Boards must ensure thorough director and shareholder oversight. 2. Market Alignment: Balance competitive pay to attract top talent without overpaying. 3. Transparency: Clear disclosure of compensation programs builds trust. Tesla’s case shows how the evolving landscape has made executive pay more transparent and aligned with shareholder interests. #Leadership #Tesla

Tesla's recent financials show a 9% revenue decline and a $1.4 billion profit drop. These losses underscore the company's primary challenge, offering a valuable lesson for all leaders. Here’s what we need to consider. This slump was primarily due to missing delivery targets and a series of recent price cuts. The recent financial troubles of Tesla point to its main issue: promising more than it delivers. While the Model Y and Model 3 sell well, Tesla's high prices limit its customer base. The idea of a $25,000 Model 2 could widen appeal, but doubts linger about its arrival. This highlights a key lesson for leaders: focus on realistic goals and dependable execution. This is a trap you must avoid at all costs, as a founder. 💡 For founders:  → Set realistic expectations and underpromise.  → Don't make claims you can't back up just to appease investors or boost short-term stock prices.  → Focus on executing well on your current roadmap. → Be transparent about challenges and realistic timelines.  → Don't overhype products or capabilities that aren't ready. Manage expectations carefully. Musk's big claims often lead to letdowns, hurting credibility. The Cybertruck's divisive design, delayed release, and recent recalls highlight the dangers of prioritising hype over quality. Focus on quality and execution; shipping flawed products damages brand reputation and customer trust. Avoid getting sidetracked by short-term stock fluctuations or investor demands; prioritise long-term vision and product excellence. Tesla's main issue lies in Musk's tendency to overpromise and underdeliver, emphasizing the importance of credibility through actions, not just words, for all leaders. Do you think Elon Musk overestimates himself? #tesla #casestudy

🌟 Tesla's Bold Step: A Gamble Worth Watching 🌟 Tesla's shareholders have voted to keep Elon Musk’s ambitious pay deal intact. As of now, the innovative CEO’s compensation structure remains unprecedented in its sheer scale and dependency on performance milestones. 📈 While it's a strong vote of confidence from shareholders, there's a caveat for Elon: Don’t Overplay Your Hand. ⚖️ The stakes are sky-high. This package is not only a testament to their trust in Musk but also a signal to other industry giants. Compensating top-tier talent with outcomes linked directly to performance is increasingly seen as a new paradigm in corporate governance. 🚀 Predictions & Commentary: - **Accelerated Innovation**: - This incentive may push Tesla towards more groundbreaking advancements. With such a vested interest in smashing those milestones, expect faster delivery of innovations, especially in AI and electric vehicle (EV) arenas. - **Market Response**: - Investors aren’t merely betting on a financial windfall. They're betting on future growth driven by radical, transformative technology. Watch Tesla shares closely. Volatility might spike, but long-term growth prospects look bullish. 📊 - **Industry Ripple Effects**: - Musk’s compensation structure could set a precedent. Other tech giants may soon adopt similar frameworks, aligning executive incentives more tightly with corporate performance and innovation goals. 🌐 🔍 The advisory to Musk? Temper Strategy with Prudence: - Maintaining focus on long-term vision without succumbing to short-term pressures is crucial. - Balancing risk-taking with sustainable growth paths will prove essential, ensuring that Tesla remains an industry trailblazer and a stable investment avenue. 💼 For companies across sectors, this scenario underscores a pivotal lesson: Leadership compensation that's heavily performance-driven could be the key to unlocking extraordinary corporate achievements. It's a daring move, bold enough to redefine norms but balanced enough to keep stakeholders in check. 🌐 As we watch this narrative unfold, one thing is certain: Tesla and Musk together, represent a dynamic and transformative force in the global market. What are your thoughts on performance-driven compensation structures for top executives? Are more companies likely to follow suit? #Tesla #ElonMusk #Innovation #ExecutiveCompensation #CorporateGovernance #FutureTech