Tax

Entertainment and Tax Partner Sky Moore shared his insights with Reuters on the potential implications of Tesla’s substantial compensation package for Elon Musk.

Excerpts: 

“Without question, you are hurting the shareholders,” said Schuyler Moore, an attorney specializing in corporate financing and tax law at Los Angeles firm Greenberg Glusker.

Typically, he said, such a huge hit to profits would cause investors to devalue a company because it was “running at a loss.” But financial fundamentals have traditionally mattered little to Tesla’s stock-market value, which is based almost entirely on Musk’s promises of products and services the company does not yet sell, including self-driving robotaxis and humanoid robots.

In the case of Tesla, Moore said, “nobody seems to care, because this company is in fantasy-land.”