alt Hacker News> Does the combined market cap count? That would be wrong.
It counts and it's not wrong.
Sure, the Tesla award takes into account any M&A but growing a 2T company to 3T is a 50% increase. While growing a 1T company to 2T is a 100% increase so it's expected to be easier for him to hit his award targets with the companies merged as opposed to not merged.
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andruby • yesterday at 6:27 PM
I understand Tesla acquiring other companies counting to the cap, but Tesla _being acquired_ by another company, why would that count?
paulddraper • yesterday at 7:50 PM
It the shareholders' value that counts.
And that doesn't get any more by 50% increase with the same dilution.
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If we combine the market cap of the entire S&P500 we get close to 70T. That doesn't mean any of those individual companies are any more valuable or any of the investors are any richer. It makes no sense that Tesla shareholders would be ok with paying out a performance bonus just for M&A that doesn't grow the value of Tesla and would just dilute their shares.