Tesla, Elon, the Board: Next Steps

Tesla's Future and Strategy

🚗 Q: What is Tesla's focus for the next 7-10 years?
A: Tesla's next 7-10 years will be its most important chapter, focusing on autonomous robo taxis and AI future to drive growth.

🤖 Q: How important is the XAI merger for Tesla?
A: The XAI merger is essential for combining Tesla's AI-driven ecosystem under one hood, giving Elon Musk significant control.

💼 Q: What should Tesla's board prioritize?
A: The board should focus on clearing the path for the XAI merger by giving Elon Musk 25% voting control through a new pay package.

Elon Musk's Compensation and Leadership

💰 Q: What will Elon Musk's 2025 compensation package include?
A: The 2025 compensation package will include clear milestones in market cap, revenue, and earnings, based on Musk's history of exceeding expectations.

🏆 Q: How does Elon Musk's leadership style affect his compensation?
A: Musk's unconventional leadership and political involvement make it difficult to apply a conventional CEO framework to his compensation package.

🛡️ Q: How should the board address Musk's political activities?
A: The board should establish guardrails for Musk's political endeavors to ensure they don't derail Tesla's growth, including oversight and a framework.

Tesla's Competitive Advantages

🏭 Q: What makes Tesla's manufacturing capabilities unique?
A: Tesla's hardware, manufacturing, and supply chain capabilities are quantifiable and unmatched globally, with 90% internal sourcing in each major economic zone.

🔋 Q: How does Tesla's ZEV credit pool position it in the market?
A: Tesla's ZEV credit pool is 60% outside of President Trump's control, allowing Tesla to dominate the market as other companies reduce EV capacity.

🚀 Q: What is Elon Musk's track record in executing projects?
A: Musk has a high batting average in executing unprecedented projects like FSD, robo taxi, and rocket launches at scale, leading to generational wealth creation.

Tesla's Valuation and Market Position

📊 Q: Why might Tesla's valuation be considered undervalued?
A: Tesla's valuation is undervalued due to the market's focus on ZEV credits and $7500 incentives, while ignoring its unmatched supply chain and manufacturing capabilities.

🔮 Q: What is Tesla's long-term valuation goal?
A: Tesla is aiming for a bullish long-term $2 trillion valuation, driven by advancements in autonomous driving and robotic capabilities.

🌐 Q: How does Tesla's diversification affect its market position?
A: Tesla's diversification into energy, FSD, robo taxi, and Optimus makes it increasingly difficult for competitors to match its capabilities and dominate the market.

Corporate Governance and Legal Considerations

📅 Q: How has Tesla's move to Texas affected its proxy and compensation package timeline?
A: Tesla's proxy and compensation package timeline is uncertain due to the transition from Delaware to Texas, potentially impacting future shareholder meetings and proxy statements.

⚖️ Q: Does Texas law require Tesla to hold shareholder meetings within a specific timeframe?
A: The Texas law requiring shareholder meetings within 13 months may not apply to Tesla's current situation, as its last meeting was held in Delaware.

Political Implications

🗳️ Q: How might Elon Musk's political ambitions affect Tesla?
A: Musk's decision to launch a third-party presidential campaign despite potential impacts on Tesla and his pay package suggests he may be prioritizing politics over the company's interests.

Tesla's Future and Elon Musk's Leadership

🚀 Elon Musk's compensation package should include clear milestones for market cap, revenue, and earnings growth, with ambitious goals to 10x Tesla in 5 years.

🏛️ The Tesla board must establish guardrails and oversight to prevent Elon Musk's political endeavors from derailing the company's growth and success.

🔄 Elon Musk's political involvement creates a lose-lose situation for Tesla, generating enemies in the establishment and negatively impacting the regulatory environment.

🤖 The XAI merger is deemed inevitable due to the convergence of AI-driven ecosystems and the need for combined forces to control this landscape.

Tesla's Competitive Advantages

🏭 Tesla's hardware, manufacturing, and supply chain capabilities are unmatched globally, with 90% internal sourcing in each major geopolitical zone.

💰 Tesla's ZEV credits and $7500 tax credits will become more valuable as competitors reduce EV capacity and struggle to match Tesla's scale and profitability.

🔬 Tesla's diversification into energy, FSD, robotaxi, and Optimus creates a unique powerhouse that's increasingly difficult for competitors to replicate.

📈 Tesla's 10-year stock chart serves as a proxy for the company's success, showcasing a golden age despite political complexities and establishment challenges.

Challenges and Uncertainties

🗳️ Elon Musk's decision to launch a third party suggests he may prioritize political ambitions over Tesla's success and his own compensation package.

⏳ Tesla's delayed proxy and potential re-delays due to the third party launch indicate uncertainty around the company's future, potentially impacting investor confidence.

📅 A New York Times article claims Texas law requires a shareholder meeting within 13 months after the last one, suggesting a likely proxy delay for Tesla.

🔊 Elon Musk's defensive reaction to criticism, telling Dan Ives to "shut up," indicates sensitivity that could impact investor perceptions.

Strategic Moves and Analyst Perspectives

💼 The potential merger between Tesla and XAI, which uses Tesla's mega packs and engineers, suggests a strategic partnership that could shape the company's future.

🎯 Dan Ives maintains an "outperform" rating and $500 price target for Tesla, indicating a bullish long-term view despite short-term challenges.

🏆 Elon Musk's high batting average in executing unprecedented projects like FSD and rocket launches is expected to create generational wealth over time.

Board and Compensation Strategies

🏅 Some suggest the Tesla board should give Elon Musk the most ambitious goals without guardrails to focus his efforts and protect company interests.

🛡️ Elon Musk's independence from both political parties could protect Tesla from cumbersome regulations and negative perceptions.

🔋 Tesla's supply chain and manufacturing prowess, with 90% internal sourcing, positions it as a powerhouse for the AI age.

• 00:00 🤔 Tesla's board and investors are pushing for oversight of Elon Musk's involvement, compensation package, and politics to ensure the company's growth isn't hindered.
  • Dan Ies, managing director of Woodbush, suggests Tesla's board should give Elon Musk a new pay package for 25% voting control, establish time limits for Musk's involvement, and oversee his political endeavors.
  • The conversation appears to be a casual, lighthearted discussion about clothing and appearance, with a focus on the attire of individuals, including Herbert and Lutz.
  • Institutional investors are frustrated and seeking oversight to ensure Elon Musk's distractions, such as recent political engagements, don't hinder Tesla's upcoming growth chapter.
  • Elon Musk and the Tesla board will likely seek an ambitious proxy vote, which is overdue, and are currently discussing the compensation package with major investors like Vanguard, Fidelity, and BlackRock.
  • To secure Elon Musk's 2025 compensation package, the board should focus on getting "true believers" on board and consider adding oversight to mitigate risks that could derail the company's story.
  • Elon Musk's increasing involvement in politics, such as potentially starting a third party, may hinder progress on important projects like the Federal Autonomous Road Map.
• 07:45 🤝 Elon Musk needs a unique compensation package and governance framework to reflect his mission-driven style, and may face pressure to take Tesla's AI projects public.
  • Elon Musk doesn't function like a conventional CEO and needs a compensation package that reflects his mission-driven nature and unique working style.
  • Elon Musk deserves a compensation package, paid retroactively to 2018 and forward for 7-10 years, with a proper corporate framework to support his unconventional approach.
  • Elon Musk getting 25% voting power in Tesla can be achieved by issuing class B shares, which would increase his voting rights without costing much.
  • Elon Musk likely doesn't want X AI to be public, but market pressures from competitors like Meta, Open AI, and others may force a merger, putting AI-driven ecosystems under one control.
  • Investors want a framework with guardrails and oversight for Elon Musk, but the argument is that Musk's past performance, such as achieving pay package milestones early, makes such measures unnecessary.
• 13:22 🤝 The Tesla board must balance Elon Musk's growing political influence and ventures with investor concerns, establishing oversight to ensure security and protect the company's regulatory environment.
  • Bringing politics into the picture changes everything, creating a lose-lose situation where taking on the establishment in DC would negatively impact Tesla's path due to Wall Street's old-world perceptions and risk assessments.
  • The board needs to establish some oversight framework to ensure investors feel secure, as Elon Musk's heavy involvement in politics and other ventures may impact Tesla's regulatory environment.
  • Elon Musk becoming an independent political figure could protect Tesla, as partisan views of him are already fixed, making further actions ineffective at changing them.
  • Elon Musk's influence and leverage increase as he gains strategic positions and potentially becomes a kingmaker, making him more valuable and protected rather than a target.
  • Elon Musk's influence and actions are driven by his patriotic desire to address key issues in the US, making it challenging for the board to set limits on his involvement.
• 19:02 💼 Tesla's board and Elon Musk must reassess the company's state, set ambitious goals, and create a new compensation package to drive growth and focus on technological advancements.
  • Setting ambitious goals and milestones with proper incentives can singularly focus Elon Musk's efforts to achieve significant growth, such as 10x Tesla's current value, without needing to change his work style.
  • Elon Musk and the board must critically assess Tesla's current state, including recent developments and departures, to inform the company's near-term and longer-term future.
  • Elon Musk has a unique perspective on the US government and Congress, having worked closely with the administration, and his frustration with their inefficiencies and spending habits may lead him to focus on winning political battles but potentially losing the larger war for technological advancements.
  • Elon wants a new, ambitious compensation package with clear, measurable milestones and tight deadlines to create pressure and incentivize quick achievement, given the board's lack of remuneration since 2020.
  • Tesla's board, along with its CEO, is one of the only S&P 500 boards that has not been remunerated in five years.
• 24:10 🤔 Elon Musk's actions and low public approval ratings raise concerns about his personal safety and potentially impact Tesla, despite his significant accomplishments.
  • The speaker acknowledges that while they would prefer things to happen quicker and with fewer challenges, they recognize that everything is not perfect.
  • The speaker worries about Elon Musk's personal safety due to his low public approval ratings and portrayal as a "villain billionaire".
  • Elon Musk's actions, such as supporting President Trump and making physical reactions like a Nazi salute, put him in personal danger due to his clumsiness in understanding how his words and actions are interpreted.
  • Elon's political endeavors may negatively impact Tesla, despite having oversight potentially mitigating this effect, but Tesla has still achieved significant accomplishments regardless.
  • Despite some criticisms, Elon Musk's accomplishments at Tesla, including the success of the Robo taxi and stock performance, suggest that he has earned the right to operate with significant autonomy and minimal oversight.
• 30:14 🤔 Elon Musk's increased politicization and actions may pose a risk to Tesla's well-being, but the company remains uniquely positioned for long-term dominance in emerging technologies.
  • Tesla's diverse product lines, unmatched manufacturing and supply chain capabilities, and strategic global positioning make it increasingly difficult for another company to replicate its success, setting it up for long-term dominance in the AI age.
  • Elon Musk's increased politicization, particularly his strong stance on clean energy and association with one party, has heightened his and Tesla's risk profile, potentially leading to increased scrutiny and backlash from lawmakers.
  • The speaker has confidence in Elon Musk's ability to achieve his goals, such as outgrowing GDP to debt, but is skeptical about the effectiveness of entering the Washington DC political space.
  • Tesla is uniquely positioned to manufacture and lead in emerging technologies like bots, and Elon Musk's current endeavors, including potential third-party presidential involvement, do not diminish his focus on Tesla.
  • Elon Musk's actions, including risking his pay package and Tesla's interests, suggest he prioritizes his political party over the company's well-being, possibly believing it's the only way to achieve his goals.
  • Elon needs to distance himself from potential political backlash, and thus requires a strategy to elevate his position and protect himself.
• 39:36 🤔 Tesla's board faces pressure to address Elon Musk's compensation package and proxy vote, with potential implications for the company's future, amidst speculation about Musk's focus and short-term stock performance.
  • My bullish long-term $2 trillion view on Tesla hasn't changed despite current stock performance, driven by progress in autonomous, robotic, and humanoid technologies.
  • The speaker appreciates the community's efforts and notes that as a long-term investor, their perspective differs from institutional investors with shorter time horizons.
  • Concerns about Elon Musk's focus on politics are short-term oriented, with worries that it will cause problems for the next 18 months, and there is speculation about upcoming proxy and timelines.
  • A group of Democrat state controllers and treasurers are pushing Tesla's board to bring a proxy vote soon, potentially including Elon Musk's compensation package, with the goal of having retail shareholders, who make up 36-40% of shareholders, vote in favor of it.
  • Tesla's board faces pressure to file a proxy statement, and they have two possible solutions: hold a basic shareholder meeting now and a special meeting later for the compensation plan, or wait until they are sure the compensation package will pass.
  • The speaker believes Elon Musk's decision to launch a third-party proxy advisor likely led him to prioritize that over securing a 2025 compensation package tied to milestones.
• 48:03 🤔 Elon Musk and Tesla's board discuss next steps, including his compensation package and oversight, after criticism from a major supporter.
  • Rudy's criticism of Tesla and Elon's reaction to it surprised Elon, who responded harshly, but the exchange highlights Rudy's concern for Tesla's well-being as a major supporter.
  • As a public company, Tesla and its leadership, including Elon, must accept certain oversight and guardrails, even if they may feel restrictive.
  • Merging Tesla and XAI under Elon Musk's voting control could accelerate progress, but there are valid arguments for keeping them separate.
  • The conversation revolves around Elon Musk's compensation package and the board's next steps, with a personal aside about fashion.
  • The conversation humorously revolves around wearing distinctive attire, with a lighthearted jab at Elon Musk conforming to certain expectations and a playful exchange about wearing "white glasses".
  • The speaker expresses gratitude for being considered a top supporter of Tesla, having a top ETF holding, and bids farewell.

WatchUrl: https://www.youtube.com/watch?v=wqwyJa_RZOg