Episode Transcript
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Speaker 1 (00:01):
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Speaker 2 (00:43):
Elon Muss is the richest person in the world currently
what publicly no publicly, but he he he wants to
approve He wants to have a one trillion dollar compensation
plan approved. In a letter to investors and Tesla's brought board, Yeah,
(01:06):
he shared why he thought that this would be appropriate
and pretty much said, like, you know, if he doesn't
get what he wants, then he's going to walk away
from the company that he's made. Obviously famous. In one
of the most valuable companies in world history. Now, it's
important to keep in mind here this payout package actually
(01:27):
comes with benchmarks that have to be met. So the
one trillion is the last of it. If it if
it gets to if Tesla's valuation gets to eight point
five trillion dollars, then his payout then he he'll he'll,
he'll earn one trillion.
Speaker 3 (01:45):
Dollars over the course of that time.
Speaker 2 (01:47):
So the eight point five is a lot from where
it is now. I think it's at one a little
bit more than one trillion right now, So let me
tell you right now, that would be you know, one
point four Yeah, a tremendous gain from where it currently is.
But it gives him an a sense of Now, some
people will say, okay, well, he already has a lot
(02:09):
of Tesla stock, so even if it like he's gonna
make hundreds of billions of dollars just from the Tesla stock.
And then when the conversation fact gets so why is
he need an additional you know, and then you know, okay,
it gets to eight trillion, he gets one trillion. That's
fourteen percent of the company's valuation. That's kind of a
lot just from a payment standpoint, But then they're like, Okay,
(02:30):
well if it gets to eight trillion dollars the investors.
I mean, that's a good thing for investors, right. That
means that you've made six hundred percent of your money
and nobody's gonna be mad at that. So but yeah,
I mean it's it's unprecedented that somebody would ask for
a one trillion dollar payment compensation package. So is that
(02:53):
something that's reasonable? And as an investor, if anybody, because
I'm sure there's a lot of people that's watching market
Mondays that might be an investor in Tesla, and you
should probably check wherever you invested, you could, you could
you probably got a vote on this situation. Yeah, if
you're invested in Tesla, is this something that you think
you want to go through it? Or do you feel
(03:14):
comfortable risking Elon Musk walking away.
Speaker 4 (03:18):
A From a negotiation standpoint, I think he's done a
fantastic job. To be very clear, they have some very
tough benchmarks in him to hit before he even gets
to the eight and a half trillion dollar value to
then get one trillion. But if we're going to be
very honest, Elon's at wants in a lifetime talent, and
(03:42):
too often boards that are not once in a lifetime
talent wants to tell the once in a lifetime talent
how they should operate. And given the business climate that
we're in, even though this is probably the greatest era
in my lifetime we were talking about to yesterday Troy,
in terms of investing, this is probably the weakest class
(04:04):
of non exceptional companies that I've ever seen that's publicly traded.
So if he's seeing the gap, because let's be very clear,
without Elon, Tesla essentially has no value, especially if he
takes his talents to focus on Starlink primarily, which is
the real gem of a company. I know it sounds
(04:26):
like a lot, it is a lot of money, but
if we're talking about driver of revenue, driver of ecosystem,
driver of ban and I said this two and a
half three years ago, eventually he's going to go to
chairman because Tesla's not the thing he wants to focus on.
And now he's going to force his way to get
a trillion or force a way out in terms of exit.
(04:48):
And if you don't think this is having a significant impact,
another once in a lifetime talent, Warren Buffett for the
first time. Berkshire got downgraded because the once in their
life time talent is not in that seat, and because
you have no great succession plan, no great product roadmap
without him. He hasn't elevated corporate executives in the public
(05:13):
so that the retail investor knows what will come next.
He's in prime position to get this package. So without him,
there is no company. In twenty ten, the stock was
at a dollar and fifteen cent. There's no value without him.
If you're gonna be very honest.
Speaker 1 (05:29):
Yeah, we had a once well another once in a
lifetime talent be voted out by his board by the
name of Sea Jobs in nineteen eighty five.
Speaker 3 (05:36):
Didn't work. Shot the stelling wherever you hear, this will
not work. This will not work either.
Speaker 1 (05:43):
I think Elon has said that he wants a twenty
five percent, so that that's part of it that makes
it a little bit tricky. He wants a twenty five
percent voting control to stay fully committed. That's kind of
like the threat, right, like, if I don't get a
twenty five percent, I'm gonna take my focuses elsewhere. The
problem is if he takes his focus elsewhere is Tesla,
because if you listen to their earnings call that they
(06:03):
just had, they talked nothing about cars. No, there wasn't
even a mention of cars. He did not mention anything
about the vehicles. Yep, all autonomous, all robotics. I think
he actually talked about like a doctor, a robot doctor on.
Speaker 3 (06:21):
The call, like preempted it.
Speaker 1 (06:22):
Didn't even get asked about it, but just decided that
I'm just going to afford this information over and so
it goes back to the how are they being valued?
Speaker 3 (06:31):
Right? Is it just sentiment we talked about again, we
talked about this yesterday. Yep. Some companies are just moving
on set.
Speaker 1 (06:36):
It's not fundamentals at this point, right, because Tesla the
automotive vehicle. When we looked at sales, I know sales
were a little bit better this quarter, but for the
past two years they haven't been great. And we've watched
the stock climb and climb, and then it pulls back
on weak earnings, and then the next day it's up
thirty dollars, and then last year it dropped and then
people said, you know, he's too focused on his government position.
(06:58):
Then he decides I'm gonna pull back from the government,
all these back focused.
Speaker 3 (07:02):
Yep.
Speaker 1 (07:03):
So it's just moving on the sentiment of the CEO.
If that CEO removes themselves from that equation, you're in
full wind.
Speaker 4 (07:11):
Four ninety five point six two billion dollars in revenue
keynote though gross margin seventeen percent, net margin five zero
point five seven percent. They can afford to lose the
generational talent. So it's a couple of ways to ruin
a company if you're an executive and you know that
you're a once in a lifetime talent and once again
(07:34):
has not raised the profile of executive management, and all
of the product road maps for the next ten years
is tied to you there between the rock and a
hard place, unless they have an executive who is an
incredible visionary. But all the incredible visionaries are tied to
other companies. And also keep in the back of your
mind open AI.
Speaker 3 (07:54):
What's stolen from him?
Speaker 1 (07:56):
He's credited as a co founder for that, but it
goes to the that mind, that that visionary mind.
Speaker 3 (08:02):
He is the visionary mind, right.
Speaker 4 (08:05):
Like go found a credit what no equity is no equity?
Speaker 2 (08:08):
Nobody nobody's bigger than the program.
Speaker 1 (08:10):
Well, no, I just want to say this before before
you go into something else, because when you think about
maybe a year ago, we were talking about keeping the
main thing the main thing, right, and Tesla was the
main thing.
Speaker 4 (08:20):
I told you he was never going to stay there, though.
Speaker 1 (08:23):
It's generated enough red revenue for him to now say, Hey,
I can take my talents elsewhere. I have star Link,
I have Neurolink, I have space X, I have This
is one of my favorite segments with Rashata the program.
Speaker 2 (08:38):
You know, nobody's bigger than the program, but you can't
negotiate with terrorists, and yeah, he is the program. Though
nobody's bigger than the program. That's the program, and it's not,
then it's not a valuable company. Then if if if
the company's stock is only uh tied to one person,
(09:01):
tied to one person, then it's not a good company.
Because Apple, because say what you want about Apple, it's
at an all time high almost ten years after Steve
after Steve Jobs.
Speaker 3 (09:13):
Died, it's highest valuation hit for a trillion to that.
Speaker 2 (09:16):
But Microsoft, in the equation it's still running, years after
Bill Gates, years after the bomber, Yeah, it's still running.
Speaker 1 (09:24):
And the equation of nobody's being in the program with
who is Elon in that equation?
Speaker 3 (09:28):
Is he the program at least the program.
Speaker 2 (09:30):
I know that I'm saying, is that what you're saying, No,
if Tesla, what I'm saying is this, Yeah, there's two
ways to look at Tesla as a as a company
that actually has real value and provides something that the
world needs as far as you know, cars and then
potentially robots and then autonomous driving, and in the next
(09:52):
fifty years is going to be one of the most
valuable companies in the world because of what they're providing,
the services that they're providing. It's a way to look
at it as it's a company that's a decent company
that provides decent products and has a rock star CEO.
Speaker 4 (10:09):
And it's a lot of that. And if we're gonna
be very clear, Tesla has always been that Tesla is
not an exceptional innovation.
Speaker 3 (10:19):
Yes.
Speaker 4 (10:20):
Has it been a Microsoft in video Apple?
Speaker 2 (10:24):
No?
Speaker 4 (10:24):
He was the driving force behind it. Is there other
executive talent there that could take the realm yes? Will
it have the blockbuster rising performance?
Speaker 3 (10:35):
No? Ye?
Speaker 4 (10:36):
And as an entrepreneur though, Rasha, because I group with
your point about the program, the other part of the
game is to be so exceptional to the company that
you write the program. I just left from watching Trot
the other day. Who makes the program is very important. Yes,
I agree to the Steve Jobs point, but Tim Cook also,
I'm not gonna say he got lucky, but there's a
way he created the value there in terms of being
(10:59):
an operator and then get in and bail with certain
people in hedge funds to make that a valuable company.
You can also say that that change the structure of Apple,
but you want to be so valuable that if you
do leave, same way with Jordan the Bulls as an entrepreneur,
that the value is with you.
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