Wednesday, June 19, 2024

Compensate

Elon Musk is one of the richest people on earth, having been wealthy since he was young. So when it looked like Tesla was going to pay him up to $56 billion, some people were outraged.

Yes, it's a huge sum, and it would go to someone who's already rich. A judge struck down that payout agreement between Musk and Tesla shareholders, agreeing with the critics. 

But there's more to the story. 

His personal wealth helped make Tesla possible in this way: Elon took no compensation from Tesla until 2019, apparently living on his own resources until he could somehow make Tesla a success. He worked extraordinarily hard, to the point of sleeping on a mattress in the factory at times.

Shareholders voluntarily chose to make this agreement to pay him that sum if he could multiply the company's value by ten times, from $60 billion to $650 billion--and he did that. After the judge's ruling, in fact, they reinstated the plan.

Before judging a story, it's good to get all the relevant information. You might have heard only the "bias framing" version of the story.

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