Ross Gerber Says TSLA Stock Dilution Would Be Equivalent To $275 Million/Day If Elon Musk's Pay Package Passes - Tesla (NASDAQ:TSLA)

Core Viewpoint - Ross Gerber, co-founder of investment firm Gerber Kawasaki, expresses concerns that Elon Musk's proposed trillion-dollar pay package for Tesla Inc. could lead to significant dilution of the company's share value, estimating a potential dilution of $275 million per day if the package is approved [1][2]. Dilution Concerns - The dilution concerns raised by Gerber are echoed by Norges Bank Investment Management (NBIM), which holds a 1.12% stake in Tesla valued at $17 billion, and has stated it will vote against the pay package due to worries about its total size and the associated dilution [2][3]. - Proxy advisory firm Glass Lewis has also indicated that there is a risk of "significant dilution" related to the pay package [3]. Pay Package Conditions - The pay package stipulates that Musk will only receive payments if certain milestones are met, but he could still earn substantial amounts by achieving some of the easier targets, even if not all goals are reached [4]. Criticism and Support - The pay package has faced criticism from various entities, including the California Public Employees Retirement System (CalPERS), which holds over $2.3 billion in Tesla shares and plans to vote against it [6]. - Despite the criticism, the package has received backing from the Florida Retirement System's State Board of Administration and investment firm Charles Schwab, which intends to vote in favor of the proposal [6][7]. - Industry expert Cathie Wood, CEO of ARK Invest, predicts that the pay package will win decisively at the upcoming shareholder meeting [7]. Company Performance Metrics - Tesla is noted to perform well on Momentum and Quality metrics, with satisfactory Growth but poor Value, and it has a favorable price trend in the short, medium, and long term [8].