Chart: https://i.redd.it/nlwafoz8c0o31.png
(Thanks and credit to u/Pieerre)
Tesla's market value has increased by 39% over the past 5 years, but Tesla shareholders have not benefited because Tesla has created so many new shares
The company as a whole is 39% bigger, but each share is 3% smaller
Tesla creates an extraordinarily large number of new shares, far more than a normal company. Tesla shares are shrinking, even though the company is growing
The company is divided into pieces (called "shares") and every time a new share is created, the existing shares become smaller (each share is a smaller piece of the pie)
The pie grew by 39% over the past 5 years, but each piece of the pie is 3% smaller (because the pie has been divided into so many more pieces). Even though the pie is getting bigger, each piece is getting smaller
Essentially, Tesla is funding it's operations by draining ownership of earnings and assets away from existing shareholders
Many Tesla shareholders don't realize this is happening to them. The company is growing but they are being left behind
Submitted September 27, 2019 at 11:34PM by nooorol https://ift.tt/2o2tEuj
