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I dont see how that's covering if he's still getting $20m of tesla stock
by kyle_v 8y ago
I dont see how that's covering if he's still getting $20m of tesla stock
- jsight 8y agoI don't know the terms. I'm assuming that this is a new issuance at the current market price and thus would effectively provide $20 million of additional liquidity to counteract the cost of the settlement. The details will surely be disclosed.
- URSpider94 8y agoAssuming he is buying newly-issued shares from Tesla, then the money goes directly into their treasury. So, the company will have $20MM more in cash than it did the day before.
- RhodesianHunter 8y agoAnd all existing shareholders will be diluted by the issuance of those shares.
- peeters 8y agoThe shares would lose value via dilution or via a new $20 million debt, this is just an easy way to get the cash on hand.
- nathanvanfleet 8y agoHe is still getting something out of that transaction. That's like saying buying food at a restaurant is a donation.
- manquer 8y agoIt will cost the company 20 million yes but will not affect the free cash flows
- Phenomenit 8y agoIf it's newly issued the price will be dilution of the other shareholders stock. I guess it's a smallest burden on Elon and the rest of the shareholders.
- cpuguy83 8y agoI'm no finance person, lawyer, or anything like that. But I suspect that he can't just give Tesla money and it has to be in exchange for something, such as stock.
- DennisP 8y agoI meant "covering" in the context of the parent commenter's concern about cash flow. He's not donating the money to Tesla, but he's preventing the fine from making their cash flow worse.