The ultimate demand lever and consumer confidence booster?

[henderrj]

If Elon wants to have his compensation package reinstituted, perhaps he should offer this.

With each car purchased he gives five shares of Tesla stock to the buyer. Limit it to the first million takers or perhaps until the model 2 is released?

Clearly this would result in an increase in sales. Would it be sufficient? Should it be limited to the US?

Secondly it would cause consumer buy in as to the company. Now they've got skin in the game. They'll watch the company closely, probably speak more positively about it. It might even cause them to refer people more than the current system does.

Thirdly, it will turn public opinion back towards Elon. This isn't just something to feed his ego, it is critically tied to the success of the company, and its value.

Not sure what regulatory hurdles would have to be cleared, nor the administrative cost of such a thing. It's only about 1% of the compensation package, so not really costing him much. Particularly considering the increase in value to the company that it would generate, thus returning everything he spent on it. Then there's the wonderful publicity that I am certain he would appreciate.

Are the odds of this happening above zero?

 

[E90alex]

Are the odds of this happening above zero?

No

 

[gaswalla]

the 'value of the company' does not increase simply by offering more shares (especially for free). That's just simply not how it works

 

[whitex]

I say the board should ask Elon to put his money where his mouth is - he should be granted options to buy 2024 Model 3 Highlands at today's MSRP instead of stock options or grants, expiring by end of this year. He's told the world that Tesla cars are appreciating assets which will be worth >$200K each very soon (was supposed be last year, but we know things slip, so let's give him till the end of this year to exercise his options, any additional slip will still be ok for him, but he'll have to find a place to store all those 2024 M3's that he exercises until they are in fact worth over $200K), so there should be a significant upside (3x-4x) for him if he truly believes what he said. What better way to instill confidence in investors than to announce Elon will be buying 718,000 M3's this year (which will cost him $28bn, but will be worth $84+bn, netting Elon a cool $56bn or more). With this extra order Tesla should make its numbers much easier for this year. Win-win all around. Elon makes $56bn, Tesla sells 718,000 more cars, Tesla starts making a crapton of money selling each S3XY for $200K or more, profits explode, everyone is happy, right?

 

[henderrj]

the 'value of the company' does not increase simply by offering more shares (especially for free). That's just simply not how it works

Obviously not. And I didn't say that Tesla should increase the number of shares, rather that Elon should give away shares that are part of his compensation package. He buys the goodwill, which, in turn, would cause an increase in sales and thus value. This would be beyond the sales caused by this roughly $1,000 incentive.

In the vein that @whitex humorously used above, if Elon really believes in the company so very much, he should do something to encourage other people to do so as well. If a person owns the company's product and some of its stock, they will definitely have a greater interest in the company. Even though this is a minuscule amount.

Think of it, it's not enough stock to even be worth trying to sell it, at present value. But, if these individuals all get tiny payouts every year, or see their stock go up slightly every year, they're going to be drawn to the company.

I'm actually serious about this proposal, but I must agree with @E90alex - I think the odds are pretty much zero that Elon would do it. Especially in that this vote has to happen precisely because of one such small shareholder. Too bad though, I do believe it would work.

Maybe that's the point of this thread? Do you think some harebrained idea like this would actually work?

 

[HankLloydRight]

Are the odds of this happening above zero?

No

I agree with E90Alex.

So many things in your proposal are just wild assumptions you made up with no basis in fact.

Clearly this would result in an increase in sales.

Would it though? A perk that amounts to no more than a $800 rebate? People by cars for the car, not to get 5 shares in a volatile company run by an egomaniac billionaire who also happens to be a right wing extremist, antisemite, and acts like a 13 year old boy.

Secondly it would cause consumer buy in as to the company. Now they've got skin in the game.

It would? 5 shares of stock force upon the buyer? If someone is buying a Tesla already, they either already own shares, or decided not to buy shares. If they get 5 shares with the car, that's not "buy in". It's a token. And contrary to your other assumption, it's trivial to just sell those 5 shares for cash once distributed.

They'll watch the company closely, probably speak more positively about it. It might even cause them to refer people more than the current system does.

They will? For 5 shares? That is, if they even decide to keep the shares in the first place. People want CASH.. not forced buy in into a company they might not want to actually invest in. A different proposal would be: Here's an $800 rebate in cash, or you can use it to buy $800 of TSLA at a 20% discount.

Thirdly, it will turn public opinion back towards Elon.

LOL.. how would that work? As long as Elon continues to openly echo extreme right-wing conspiracy theories, act like a lunatic, and continue down his current path, nothing will "turn public opinion back towards Elon". Certainly not handing out token $800 rebates.

You basically made a proposal with zero facts, all opinion and your own projections. This is a stupid idea and would have none of the effects you assert.

 

[henderrj]

This is a stupid idea and would have none of the effects you assert.

Well, tell me what you really think! Clearly you have a pretty negative image towards our egomaniacle leader. (And, I would agree with you on that point.) Still, nobody's entirely bad, nobody's entirely good. At least not that I have personally seen in this world.

Little things do make a difference to people. Indeed, that old saying courtesy is the lubricant that keeps the machine family running smoothly, illustrates just such a thing. A small step towards another will often make a big difference. I happen to think that this one is. I didn't assert any facts, just had an idea that I still think is a good one. It'll never get tried, so there'll be no way to know. But, it was fun to think about it.

 

[HankLloydRight]

Little things do make a difference to people.

You're absolutely right. Instead of offering a token rebate, Tesla should fix their phenomenally broken delivery and customer service organization. That would go A LOOOOONG way in building customer satisfaction and referrals.

 

[henderrj]

You're absolutely right. Instead of offering a token rebate, Tesla should fix their phenomenally broken delivery and customer service organization. That would go A LOOOOONG way in building customer satisfaction and referrals.

Definitely agree with that! Sadly, it feels like that has only a slightly better chance of happening than my idea.
- Elon Musk giving away over $200 million for Tesla stock?!
- Spending about the same to fix service?
I wonder which would make the news. It's a crazy world we live in!