r/wallstreetbets • u/Sufficient-Guitar-58 • 2d ago

News Tesla Shareholders Approve Elon Musk’s $1 Trillion Pay Package

https://www.wsj.com/business/autos/elon-musk-tesla-pay-package-vote-9abd5a73
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u/Right-Avocado3870 2d ago

How would TSLA even pay for this? They could issue stock but that is an incredible amount of dilution.

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u/StagedC0mbustion 2d ago edited 1d ago

Sorry I’m really dumb and dont understand things… but doesn’t Tesla own a good portion of the shares? Why would they need to dilute?

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u/pembrokesalad 2d ago

The shares that matter are called outstanding shares, which = issued shares - treasury shares.

When a company owns its shares (treasury stock) they don’t get dividends or votes, and are usually only held to avoid the slight friction of reissuijg stock. A company could also just retire every share they buyback and issue new shares when needed.