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Elon Musk’s $1 Trillion Tesla Deal: Is He Really Worth It? · Earn Your Leisure

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  Speaker 2: Elon Muss is the richest person in the world currently
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  Speaker 2: what publicly no publicly, but he he he wants to
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  Speaker 2: approve He wants to have a one trillion dollar compensation
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  Speaker 2: plan approved. In a letter to investors and Tesla's brought board, Yeah,
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  Speaker 2: he shared why he thought that this would be appropriate
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  Speaker 2: and pretty much said, like, you know, if he doesn't
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  Speaker 2: get what he wants, then he's going to walk away
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  Speaker 2: from the company that he's made. Obviously famous. In one
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  Speaker 2: of the most valuable companies in world history. Now, it's
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  Speaker 2: important to keep in mind here this payout package actually
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  Speaker 2: comes with benchmarks that have to be met. So the
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  Speaker 2: one trillion is the last of it. If it if
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  Speaker 2: it gets to if Tesla's valuation gets to eight point
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  Speaker 2: five trillion dollars, then his payout then he he'll he'll,
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  Speaker 2: he'll earn one trillion.
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  Speaker 3: Dollars over the course of that time.
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  Speaker 2: So the eight point five is a lot from where
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  Speaker 2: it is now. I think it's at one a little
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  Speaker 2: bit more than one trillion right now, So let me
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  Speaker 2: tell you right now, that would be you know, one
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  Speaker 2: point four Yeah, a tremendous gain from where it currently is.
• 2:03
  Speaker 2: But it gives him an a sense of Now, some
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  Speaker 2: people will say, okay, well, he already has a lot
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  Speaker 2: of Tesla stock, so even if it like he's gonna
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  Speaker 2: make hundreds of billions of dollars just from the Tesla stock.
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  Speaker 2: And then when the conversation fact gets so why is
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  Speaker 2: he need an additional you know, and then you know, okay,
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  Speaker 2: it gets to eight trillion, he gets one trillion. That's
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  Speaker 2: fourteen percent of the company's valuation. That's kind of a
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  Speaker 2: lot just from a payment standpoint, But then they're like, Okay,
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  Speaker 2: well if it gets to eight trillion dollars the investors.
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  Speaker 2: I mean, that's a good thing for investors, right. That
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  Speaker 2: means that you've made six hundred percent of your money
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  Speaker 2: and nobody's gonna be mad at that. So but yeah,
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  Speaker 2: I mean it's it's unprecedented that somebody would ask for
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  Speaker 2: a one trillion dollar payment compensation package. So is that
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  Speaker 2: something that's reasonable? And as an investor, if anybody, because
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  Speaker 2: I'm sure there's a lot of people that's watching market
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  Speaker 2: Mondays that might be an investor in Tesla, and you
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  Speaker 2: should probably check wherever you invested, you could, you could
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  Speaker 2: you probably got a vote on this situation. Yeah, if
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  Speaker 2: you're invested in Tesla, is this something that you think
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  Speaker 2: you want to go through it? Or do you feel
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  Speaker 2: comfortable risking Elon Musk walking away.
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  Speaker 4: A From a negotiation standpoint, I think he's done a
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  Speaker 4: fantastic job. To be very clear, they have some very
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  Speaker 4: tough benchmarks in him to hit before he even gets
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  Speaker 4: to the eight and a half trillion dollar value to
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  Speaker 4: then get one trillion. But if we're going to be
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  Speaker 4: very honest, Elon's at wants in a lifetime talent, and
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  Speaker 4: too often boards that are not once in a lifetime
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  Speaker 4: talent wants to tell the once in a lifetime talent
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  Speaker 4: how they should operate. And given the business climate that
• 3:54
  Speaker 4: we're in, even though this is probably the greatest era
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  Speaker 4: in my lifetime we were talking about to yesterday Troy,
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  Speaker 4: in terms of investing, this is probably the weakest class
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  Speaker 4: of non exceptional companies that I've ever seen that's publicly traded.
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  Speaker 4: So if he's seeing the gap, because let's be very clear,
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  Speaker 4: without Elon, Tesla essentially has no value, especially if he
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  Speaker 4: takes his talents to focus on Starlink primarily, which is
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  Speaker 4: the real gem of a company. I know it sounds
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  Speaker 4: like a lot, it is a lot of money, but
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  Speaker 4: if we're talking about driver of revenue, driver of ecosystem,
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  Speaker 4: driver of ban and I said this two and a
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  Speaker 4: half three years ago, eventually he's going to go to
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  Speaker 4: chairman because Tesla's not the thing he wants to focus on.
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  Speaker 4: And now he's going to force his way to get
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  Speaker 4: a trillion or force a way out in terms of exit.
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  Speaker 4: And if you don't think this is having a significant impact,
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  Speaker 4: another once in a lifetime talent, Warren Buffett for the
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  Speaker 4: first time. Berkshire got downgraded because the once in their
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  Speaker 4: life time talent is not in that seat, and because
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  Speaker 4: you have no great succession plan, no great product roadmap
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  Speaker 4: without him. He hasn't elevated corporate executives in the public
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  Speaker 4: so that the retail investor knows what will come next.
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  Speaker 4: He's in prime position to get this package. So without him,
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  Speaker 4: there is no company. In twenty ten, the stock was
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  Speaker 4: at a dollar and fifteen cent. There's no value without him.
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  Speaker 4: If you're gonna be very honest.
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  Speaker 1: Yeah, we had a once well another once in a
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  Speaker 1: lifetime talent be voted out by his board by the
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  Speaker 1: name of Sea Jobs in nineteen eighty five.
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  Speaker 3: Didn't work. Shot the stelling wherever you hear, this will
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  Speaker 3: not work. This will not work either.
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  Speaker 1: I think Elon has said that he wants a twenty
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  Speaker 1: five percent, so that that's part of it that makes
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  Speaker 1: it a little bit tricky. He wants a twenty five
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  Speaker 1: percent voting control to stay fully committed. That's kind of
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  Speaker 1: like the threat, right, like, if I don't get a
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  Speaker 1: twenty five percent, I'm gonna take my focuses elsewhere. The
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  Speaker 1: problem is if he takes his focus elsewhere is Tesla,
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  Speaker 1: because if you listen to their earnings call that they
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  Speaker 1: just had, they talked nothing about cars. No, there wasn't
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  Speaker 1: even a mention of cars. He did not mention anything
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  Speaker 1: about the vehicles. Yep, all autonomous, all robotics. I think
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  Speaker 1: he actually talked about like a doctor, a robot doctor on.
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  Speaker 3: The call, like preempted it.
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  Speaker 1: Didn't even get asked about it, but just decided that
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  Speaker 1: I'm just going to afford this information over and so
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  Speaker 1: it goes back to the how are they being valued?
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  Speaker 3: Right? Is it just sentiment we talked about again, we
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  Speaker 3: talked about this yesterday. Yep. Some companies are just moving
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  Speaker 3: on set.
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  Speaker 1: It's not fundamentals at this point, right, because Tesla the
• 6:39
  Speaker 1: automotive vehicle. When we looked at sales, I know sales
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  Speaker 1: were a little bit better this quarter, but for the
• 6:43
  Speaker 1: past two years they haven't been great. And we've watched
• 6:47
  Speaker 1: the stock climb and climb, and then it pulls back
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  Speaker 1: on weak earnings, and then the next day it's up
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  Speaker 1: thirty dollars, and then last year it dropped and then
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  Speaker 1: people said, you know, he's too focused on his government position.
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  Speaker 1: Then he decides I'm gonna pull back from the government,
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  Speaker 1: all these back focused.
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  Speaker 3: Yep.
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  Speaker 1: So it's just moving on the sentiment of the CEO.
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  Speaker 1: If that CEO removes themselves from that equation, you're in
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  Speaker 1: full wind.
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  Speaker 4: Four ninety five point six two billion dollars in revenue
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  Speaker 4: keynote though gross margin seventeen percent, net margin five zero
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  Speaker 4: point five seven percent. They can afford to lose the
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  Speaker 4: generational talent. So it's a couple of ways to ruin
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  Speaker 4: a company if you're an executive and you know that
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  Speaker 4: you're a once in a lifetime talent and once again
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  Speaker 4: has not raised the profile of executive management, and all
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  Speaker 4: of the product road maps for the next ten years
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  Speaker 4: is tied to you there between the rock and a
• 7:42
  Speaker 4: hard place, unless they have an executive who is an
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  Speaker 4: incredible visionary. But all the incredible visionaries are tied to
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  Speaker 4: other companies. And also keep in the back of your
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  Speaker 4: mind open AI.
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  Speaker 3: What's stolen from him?
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  Speaker 1: He's credited as a co founder for that, but it
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  Speaker 1: goes to the that mind, that that visionary mind.
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  Speaker 3: He is the visionary mind, right.
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  Speaker 4: Like go found a credit what no equity is no equity?
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  Speaker 2: Nobody nobody's bigger than the program.
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  Speaker 1: Well, no, I just want to say this before before
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  Speaker 1: you go into something else, because when you think about
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  Speaker 1: maybe a year ago, we were talking about keeping the
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  Speaker 1: main thing the main thing, right, and Tesla was the
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  Speaker 1: main thing.
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  Speaker 4: I told you he was never going to stay there, though.
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  Speaker 1: It's generated enough red revenue for him to now say, Hey,
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  Speaker 1: I can take my talents elsewhere. I have star Link,
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  Speaker 1: I have Neurolink, I have space X, I have This
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  Speaker 1: is one of my favorite segments with Rashata the program.
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  Speaker 2: You know, nobody's bigger than the program, but you can't
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  Speaker 2: negotiate with terrorists, and yeah, he is the program. Though
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  Speaker 2: nobody's bigger than the program. That's the program, and it's not,
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  Speaker 2: then it's not a valuable company. Then if if if
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  Speaker 2: the company's stock is only uh tied to one person,
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  Speaker 2: tied to one person, then it's not a good company.
• 9:04
  Speaker 2: Because Apple, because say what you want about Apple, it's
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  Speaker 2: at an all time high almost ten years after Steve
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  Speaker 2: after Steve Jobs.
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  Speaker 3: Died, it's highest valuation hit for a trillion to that.
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  Speaker 2: But Microsoft, in the equation it's still running, years after
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  Speaker 2: Bill Gates, years after the bomber, Yeah, it's still running.
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  Speaker 1: And the equation of nobody's being in the program with
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  Speaker 1: who is Elon in that equation?
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  Speaker 3: Is he the program at least the program.
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  Speaker 2: I know that I'm saying, is that what you're saying, No,
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  Speaker 2: if Tesla, what I'm saying is this, Yeah, there's two
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  Speaker 2: ways to look at Tesla as a as a company
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  Speaker 2: that actually has real value and provides something that the
• 9:45
  Speaker 2: world needs as far as you know, cars and then
• 9:49
  Speaker 2: potentially robots and then autonomous driving, and in the next
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  Speaker 2: fifty years is going to be one of the most
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  Speaker 2: valuable companies in the world because of what they're providing,
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  Speaker 2: the services that they're providing. It's a way to look
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  Speaker 2: at it as it's a company that's a decent company
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  Speaker 2: that provides decent products and has a rock star CEO.
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  Speaker 4: And it's a lot of that. And if we're gonna
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  Speaker 4: be very clear, Tesla has always been that Tesla is
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  Speaker 4: not an exceptional innovation.
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  Speaker 3: Yes.
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  Speaker 4: Has it been a Microsoft in video Apple?
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  Speaker 2: No?
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  Speaker 4: He was the driving force behind it. Is there other
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  Speaker 4: executive talent there that could take the realm yes? Will
• 10:31
  Speaker 4: it have the blockbuster rising performance?
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  Speaker 3: No? Ye?
• 10:36
  Speaker 4: And as an entrepreneur though, Rasha, because I group with
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  Speaker 4: your point about the program, the other part of the
• 10:42
  Speaker 4: game is to be so exceptional to the company that
• 10:44
  Speaker 4: you write the program. I just left from watching Trot
• 10:46
  Speaker 4: the other day. Who makes the program is very important. Yes,
• 10:50
  Speaker 4: I agree to the Steve Jobs point, but Tim Cook also,
• 10:53
  Speaker 4: I'm not gonna say he got lucky, but there's a
• 10:56
  Speaker 4: way he created the value there in terms of being
• 10:59
  Speaker 4: an operator and then get in and bail with certain
• 11:03
  Speaker 4: people in hedge funds to make that a valuable company.
• 11:06
  Speaker 4: You can also say that that change the structure of Apple,
• 11:10
  Speaker 4: but you want to be so valuable that if you
• 11:12
  Speaker 4: do leave, same way with Jordan the Bulls as an entrepreneur,
• 11:16
  Speaker 4: that the value is with you.
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