Are Nvidia, Tesla Employee Stock Grants Allowing Staff To Buy Yachts — Former AI Chief Says 'Most People Don't HODL'
Portfolio Pulse from Anan Ashraf
Andrej Karpathy, former AI director at Tesla, mentioned that a few Tesla employees could afford yachts due to their stock grants, similar to Nvidia employees. He highlighted that most employees sell their stock grants early, but a few 'true believers' have held onto their shares, expecting further gains from Tesla's future achievements, particularly in fully autonomous driving. Both Nvidia and Tesla have seen significant stock price increases, making some employees millionaires. However, Tesla did not offer merit-based equity awards to some salaried employees in 2023, a deviation from its usual practice.
March 18, 2024 | 3:52 am
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NEUTRAL IMPACT
Nvidia employees, like Tesla's, have benefited from stock grants, with significant stock price increases making some employees millionaires.
While the article primarily focuses on Tesla, it mentions Nvidia in a similar context of employee stock grants leading to significant wealth for some employees. The positive sentiment around Nvidia's stock performance is acknowledged, but the article does not provide specific details on Nvidia's current compensation practices, leading to a neutral short-term impact assessment.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Tesla's stock grants have made some employees millionaires, with a few holding out for future gains from autonomous driving. However, Tesla did not offer merit-based equity awards in 2023, a change from its usual practice.
The news highlights both the positive impact of Tesla's stock grants on employee wealth and a potential concern regarding the change in compensation practices. The mixed nature of the news suggests a neutral short-term impact on Tesla's stock price, as the positive sentiment from past stock performance may be tempered by concerns over changes in compensation practices.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90