Tesla shareholders brace for bumpy ride on Musk’s mixed fortunes – Wall Street Journal

Tesla supremo Elon Musk is one of the world's richest men who is becoming even wealthier on the back of eye-watering bonuses based on the performance of the electric vehicle manufacturer. Stock options issued in 2018 for more than 20 million shares are set to be converted into 100 million shares after the 31 August 1-5 split, with Musk cashing in handsomely on the first of 12 tranches. There's a sting in tail though, for shareholders, whose expectations are threatened by massive expenses, not least a 1$ billion compensation item, that will impact on future profit as determined by GAAP. The same accounting rules also put the brakes on Tesla's much-anticipated inclusion in the benchmark S&P 500 index. The disappointment saw a hefty 20% drop in Tesla's volatile stock during the first trading session after the index was rebalanced. Tesla shareholders hope it doesn't point to what the future may hold. – Derek Alberts

Elon Musk's payday could cost Tesla shareholders dearly

By Charley Grant

The accounting effect of options awards for Tesla's CEO could push it into a loss and disqualify the company from S&P 500 index inclusion for a long time. Tesla in May awarded Elon Musk shares worth nearly $800 million at the time.

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