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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, 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 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.

Dollars over the course of that time.

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 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, 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 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 comfortable risking Elon Musk walking away.

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 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 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 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.

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 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.

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.

Didn't work.

Shot the stelling wherever you hear, this will not work.

This will not work either.

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 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.

The call, like preempted it.

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?

Right?

Is it just sentiment we talked about again, we talked about this yesterday.

Yep.

Some companies are just moving on set.

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.

Then he decides I'm gonna pull back from the government, all these back focused.

Yep.

So it's just moving on the sentiment of the CEO.

If that CEO removes themselves from that equation, you're in full wind.

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 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.

What's stolen from him?

He's credited as a co founder for that, but it goes to the that mind, that that visionary mind.

He is the visionary mind, right.

Like go found a credit what no equity is no equity?

Nobody nobody's bigger than the program.

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.

I told you he was never going to stay there, though.

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.

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, 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.

Died, it's highest valuation hit for a trillion to that.

But Microsoft, in the equation it's still running, years after Bill Gates, years after the bomber, Yeah, it's still running.

And the equation of nobody's being in the program with who is Elon in that equation?

Is he the program at least the program.

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 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.

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.

Yes.

Has it been a Microsoft in video Apple?

No?

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?

No?

Ye?

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 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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