The Truth About Elon Musk's $30 Billion Pay Package

Tesla Compensation Package

🚀 Q: What is Elon Musk's new compensation package?
A: A $30 billion pay package including a 96 million share award vesting in 2027, requiring Elon to serve in a leadership role for 2 years.

💰 Q: How does the new package compare to the 2018 one?
A: It's about one-third of the original 2018 package value, which created $950 billion in shareholder value but was held up in court.

🏛️ Q: Why can Tesla create this new package without legal issues?
A: Tesla's incorporation in Texas provides additional protections against shareholder litigation compared to Delaware.

Robotaxi Service

🚗 Q: What's the current status of Tesla's robotaxi service?
A: Invite-only in Austin and Bay Area, with 14-20 cars in Austin and 100+ cars planned for the Bay Area.

💵 Q: How does pricing differ between Austin and Bay Area robotaxis?
A: Bay Area service with a human driver costs double the driverless service in Austin, using dynamic pricing.

Tesla Energy

⚡ Q: What's significant about Tesla's recent mega pack order?
A: Georgia Power ordered 3.3 GWh of capacity across 10 facilities, worth $2.7 billion, with $900 million in expected gross profit.

🔋 Q: When will the Georgia Power mega pack order be operational?
A: The order will come online between 2028 and 2030.

🌐 Q: What's unique about Tesla's Mega Pack software?
A: It can mimic a natural gas turbine, making it easy for utilities to integrate with existing power plants.

💹 Q: How does Tesla's Auto Bidder software work?
A: It autonomously trades energy for mega packs based on forecasted prices, generating revenue without human intervention.

🏘️ Q: What is Tesla's Virtual Power Plant program?
A: It coordinates thousands of Power Wall batteries to act as one massive mega pack, with users potentially earning $700/year.

🚛 Q: How can Cybertrucks contribute to grid stability?
A: Tesla's Power Share technology allows Cybertruck batteries to serve as distributed mega packs for homes.

Waymo Technology

🔬 Q: What are the key components of Waymo's sixth-generation hardware?
A: It includes 13 cameras, 4 lidar, 6 radars, and 10 little wind wipers.

🤖 Q: How does Waymo's hardware compare to Tesla's approach?
A: Waymo's system is more complicated and cannot compare to Tesla's fully optimized and integrated cyber cab.

Market Dynamics

📈 Q: What's the projected demand for grid-scale battery storage?
A: The world will need hundreds of thousands of batteries to power AI data centers, supercharger sites, and the entire grid.

🔮 Q: How might Tesla's Power Share technology impact the utility-scale battery market?
A: It could potentially reduce the need for utility-scale mega packs by leveraging distributed Cybertruck batteries.

💼 Q: What's the significance of Georgia Power's mega pack order for Tesla?
A: It demonstrates massive demand for large grid-scale battery energy storage and positions Tesla as a key player in the electric power market.

🌟 Q: How does Tesla's integrated approach benefit its energy business?
A: Tesla's software capabilities and diverse use cases give it a competitive edge over rivals like BYD and CL in the energy storage market.

Elon Musk's Compensation and Tesla's Value

🚀 Elon Musk's $30 billion pay package is a backup plan if his 2018 compensation package isn't reinstated, providing a 96 million share award worth $30 billion, vesting in 2027.

💰 The focus should be on $950 billion in shareholder value created since 2018, not Tesla's profit, as Tesla's market cap grew from $50 billion to $1 trillion.

🤝 The 2018 compensation package was the most shareholder-friendly plan ever, aligning Musk's interests with shareholders and supporting his Mars goals.

📈 Tesla's stock price increased when the new pay package was announced, easing concerns about Musk's commitment to the company.

Tesla's Robotaxi Service

🚕 Tesla's ride-hailing service is expanding revenue streams beyond energy and automotive, expected to be the fastest-growing segment.

🗺️ Tesla has expanded its Austin geo-fence and is now operating in California, with a huge service area but long wait times due to limited cars.

💲 Tesla's robotaxi service with a human driver in the Bay Area costs double the price of the driverless service in Austin, which is over $1 per mile on average.

🔄 Tesla implemented dynamic pricing for its robotaxi service, moving towards a more serious pricing scheme.

Tesla Energy and Battery Technology

⚡ Tesla secured a $2.7 billion megapack order from Georgia Power, including over 3 GWh of combined capacity across 10 facilities, powering 2 million homes for 4 hours.

💼 The Georgia Power project alone will generate $900 million in gross profit for Tesla Energy, which has a 30.5% gross margin.

🔋 Tesla's battery products have multiple use cases, including grid stabilization, backup power, AI data centers, and energy price arbitrage.

🏠 Tesla's virtual power plant program allows thousands of Powerwall owners to charge and discharge in sync, creating a distributed megapack.

🚗 Tesla's Power Share technology enables vehicles to charge and discharge in sync with Powerwalls, further stabilizing the grid.

Competitive Advantage and Innovation

🏭 Tesla's mass production of cyber cabs at a cost level that can build 3-4 cars for the same cost as one Waymo vehicle gives them a significant advantage.

🧠 Tesla's software is unparalleled in simulating natural gas turbines and optimizing energy trading, making its battery products attractive to large utility customers.

Market Dynamics and Regulation

💼 Private markets are providing large amounts of capital to companies, reducing the need for public listings and associated costs.

📊 The regulatory environment for going public is becoming more favorable, with relaxed profitability requirements and deregulation efforts.

👥 Average retail investors are unable to invest in transformative private companies like SpaceX and OpenAI, while VCs and private equity firms benefit from the current system.

🔓 Regulatory reform is needed to allow retail investors access to private companies, including less stringent regulations and shareholder litigation reform.

🪙 Tokenization of equity by companies like Robinhood is a workaround for retail investors to access private companies, but still faces regulatory hurdles.

Waymo's Technology

🚗 Waymo's sixth-generation robotaxi hardware includes 13 cameras, 4 lidar, 6 radars, and 10 windshield wipers for sensor cleaning, but remains complex compared to Tesla's integrated approach.

🏭 Waymo struggles with importing vehicles from China, adding sensors in Arizona, and mass-producing at a scale of tens of thousands.

• 00:00 💸 Elon Musk's $30 billion pay package is a backup plan for his 2018 compensation, aiming to give him 14.7% ownership in Tesla and closer to his desired 25% control.
  • Tesla's $30 billion pay package to Elon Musk should be evaluated by the $950 billion in shareholder value he created since 2018, not the company's lifetime profit.
  • Tesla's 96 million share award to Elon Musk is essentially a backup plan in case a Delaware lawsuit against his 2018 compensation package doesn't go his way, paying him for work already completed.
  • Elon Musk's $30 billion pay package includes 96 million shares vesting in 2027, with conditions such as a leadership role, tax payments, and a 5-year holding period, and may be forfeited if his original 2018 compensation package is reinstated.
  • Tesla's proposed $30 billion pay package for Elon Musk aims to bring his ownership stake to 14.7%, moving closer to his desired 25% control, and addresses his compensation for the last eight years.
  • Tesla may address Elon Musk's desired 25% voting control through a combination of a new compensation plan and possibly re-allocating shares, with the next plan likely to cover the remaining percentage.
  • Elon Musk's 2018 pay package, which tied his compensation to Tesla's performance milestones, was highly shareholder-friendly and potentially underpaid given the company's trillion-dollar valuation.
• 10:31 💸 Elon Musk's $30 billion pay package aims to reward his value creation for Tesla, ease commitment concerns, and align with shareholder goals.
  • Elon Musk's new equity award is an attempt by the board to make him whole in case his 2018 compensation package is reversed on appeal.
  • Elon Musk's $30 billion pay package eases concerns about his commitment to Tesla, and its approval may be followed by another potential pay package.
  • Elon Musk's $30 billion pay package should be evaluated based on the $950 billion in shareholder value he created for Tesla, not the company's lifetime profit.
  • Elon Musk's enormous pay package reflects his unparalleled ability to create shareholder value and new businesses, making a large compensation necessary to align with shareholders and meet his goals.
  • Tesla's move from Delaware to Texas provides additional protections against predatory shareholder litigation, now requiring a 3% stake in the company to initiate such lawsuits.
  • The discussion on Elon Musk's $30 billion pay package has concluded, with most questions cleared up and remaining ones invited to be posted in the comments.
• 17:30 🚗 Tesla is rapidly expanding its robo-taxi ride-hailing service, expected to be its fastest-growing segment, despite current availability issues and high demand.
  • Tesla is expanding its ride-hailing service, dubbed robo-taxi, rapidly, with a growing service area, including California, and is expected to be the company's fastest-growing segment in the coming years.
  • Tesla is expanding its robotaxi service in Austin and the Bay Area, with a large service area, increasing number of cars, and plans to remove human drivers, but currently faces high demand and limited availability.
  • Tesla's invite-only ride-hailing service is struggling with long wait times and availability issues, highlighting the need to add more cars to the network.
  • The discussion compares pricing of driverless and human-driven rides in different areas, noting that dynamic pricing was rolled out, with Bay Area customers likely willing to pay a premium, similar to Uber prices.
  • The sixth generation robo-taxi hardware from Zeekr, likely used for Waymo, costs $50-80k for the base model and $5-10k for additional sensor components, but will likely be 3 times more expensive than Tesla's Cybercab due to import duties and tariffs.
  • Modifying and validating the sensor suite of 100,000 imported Chinese vehicles in Arizona to meet US requirements is a significant production challenge.
• 28:23 💰 Tesla's energy business is poised for massive growth with large-scale battery storage orders, including a $2.7 billion megapack order from Georgia Power.
  • Tesla's mass production and cost advantage in autonomous vehicles, particularly with the Cyber Cab, makes it difficult for competitors like Waymo to compete with their $25,000 purpose-built autonomous vehicle.
  • Waymo has engineering prototypes of its sixth-generation driver on the road, including one recently spotted in Houston, Texas, as it urgently needs to validate the technology to continue expanding.
  • The new all-electric Volvo EX90's LIDAR system can damage iPhone camera sensors if held directly in front of it.
  • Tesla secured a $2.7 billion megapack order from Georgia Power for over 3 GWh of combined capacity across 8 sites, expected to generate $800-900 million in gross profit.
  • Tesla's energy business, particularly its Mega Pack systems for large-scale battery energy storage, is poised for massive growth driven by increasing demand from AI data centers and grid needs.
  • Tesla's energy team secured a large order from Georgia Power for over 3,000 mega packs, potentially worth $2.7 billion, and similar large-scale projects are expected to continue.
• 39:24 💡 Elon Musk's Tesla is revolutionizing energy storage with its mega pack battery and virtual power plant programs, enabling grid stabilization, backup power, and autonomous energy trading.
  • Tesla's mega pack battery has various potential use cases, including grid stabilization, backup power, AI data centers, solar and wind projects, energy arbitration, and can be used by utility customers, with software capabilities that allow it to mimic natural gas turbines.
  • Tesla's software, particularly features like Auto Bidder, sets it apart from other battery cell makers, enabling autonomous energy trading and massive scalable battery systems to support expansion of power generation, electric vehicles, and AI data centers.
  • Tesla's virtual power plant program allows Power Wall owners to earn money by discharging energy during high grid demand, potentially offsetting the cost of the Power Wall and transforming the grid with distributed battery storage.
  • Tesla's virtual power plant program in Puerto Rico, consisting of 59,000 Power Walls, has a live dashboard showing total battery power and real-time charging and discharging activity.
  • Power walls, like those made by Tesla, can help stabilize the grid and provide backup power to homes, even for those without one, by creating a virtual power plant.
  • The discussion will move on to Elon Musk's interactions with Omar and Sawyer after addressing current topics.
• 49:10 💸 OpenAI's potential $500B valuation and private companies like SpaceX's unprecedented worth may prompt regulatory changes to allow earlier public access and benefit retail investors.
  • OpenAI's potential valuation reaches $500 billion, surpassing SpaceX to become the world's most valuable private company, with 700 million weekly users and massive growth potential in the AI space.
  • If ChatGPT boosts revenue, companies like this could be valued much higher than $500 billion, potentially rivaling Palantir's $410 billion valuation after its first $1 billion quarter.
  • OpenAI's valuation would make it the 19th most valuable company in the world, surpassing Netflix, if it were to go public with its current estimated worth.
  • The speaker is skeptical about Elon Musk's corporate structure for his AI company, questioning its nonprofit status, potential exit plan, and feasibility of an IPO or acquisition.
  • The unprecedented valuations of private companies like SpaceX ($400B) and OpenAI ($500B) may prompt public exchanges to rethink regulations and incentives, as companies seem to prefer staying private to avoid shareholder lawsuits and dilution of stock.
  • Regulations make it difficult for retail investors to access early-stage companies like SpaceX, allowing only VCs and wealthy investors to benefit, and regulatory changes may be needed to allow earlier public access.
• 58:36 💰 The conversation discusses the issues with retail investors accessing private company shares, the need for regulatory reform, and a perceived double standard in investing.
  • There is no perfect method for retail investors to access private company shares, but various workarounds are emerging, such as tokenizing equity and pooled funds.
  • Regulatory environments for companies going public are changing to be more favorable, but some entrepreneurs like Elon Musk may still choose not to go public due to various reasons.
  • The real issue with stock exchanges and retail investors is US law, which needs reform to allow average investors to trade freely without restrictions.
  • There is a double standard in investing, where average retail investors are restricted from investing in booming private companies but can gamble away their life savings in casinos or sports betting.
  • The conversation is about replies Elon Musk gave to the speakers over the past week, which they will review.
• 01:03:14 🤖 Tesla is working on a new FSD update and autonomous vehicles, with Elon Musk's compensation package and XAI investment to be voted on at the November shareholder meeting.
  • Elon Musk believes that real-world training data, such as human-created videos, is essential for Tesla's Optimus robot to learn, and that simulations can't replace real-world experience.
  • New AI video models, like one from Google, can generate photorealistic scenes that allow for exploration and interaction, potentially revolutionizing video games with more realistic graphics.
  • Elon Musk has been posting an insane amount of content on X, with 146-147 posts in a day, mostly about XAI, Tesla, and AI, with many engaging with his followers.
  • Tesla is working on a new FSD update with a 10x larger model, expected to start shipping by the end of September, which will likely be more intelligent and help enable the robo-taxi to operate without a safety monitor.
  • Tesla is well-positioned to play a central role in the massive shift to autonomous vehicles, with a potential market of millions of self-driving cars needed worldwide.
  • Shareholders should prepare to vote on a new Elon Musk compensation package and XAI investment at the upcoming Tesla shareholder meeting in November.

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