SpaceX / Tesla private equity compensation
Now that there are talks about taking Tesla private, with a structure similar to SpaceX, I’m curious how SpaceX employees feel about their stock compensation. Can you actually sell shares easily every 6months? Do you generally get bigger TC because of the limited liquidity? Is there ESPP? Is it all gonna be paper money similarly to other startups?
Anyone with a 100 level understanding of finance understands how much more beneficial going private would be. Net TC from equity probably goes way up as the public mob of shorters can't impact stock price anymore. Company value will rise as investors are left to purely speculate on sales numbers. Public markets have been holding Tesla back. They may not be profitable for a while and that's okay
What happens to publicly held shares?
You can hold onto them or sell for $420/share. Smart move would be to hold.
I feel dumb for asking, but why is it smart to hold? I assume it’s because the price could still go up, but how does someone know how much their private company RSU’s are worth? Sorry, I don’t know anything about stock when it comes to private companies
We can sell every 6 months, typically summer and winter, if there's enough venture capital to buy the shares. Though some times when rockets blow up they cancelled "buy back" and you'll end up waiting a year for the opportunity to sell again. Wouldn't count on TC to go up a lot after going private. Salaries are lower for the privilege of owning the exclusive stock. Management renigs, reduces, and delays raises company wide. They also delute shares by issuing tons more to raise capital (basicly printing their own mony).
It all depends. Every private structure is different.
As far as I understand the intention is to copy SpaceX structure, hence the question for people familiar with SpaceX structure.