Will Elon Get Paid $1,000,000,000,000?

Key takeaways

Elon Musk's new pay package from Tesla could reach $1 trillion, contingent upon meeting ambitious company goals.
The history of Musk's previous compensation packages highlights the complex relationship between executive pay and shareholder interests.
Tesla's potential investment in Musk's AI venture, xAI, raises questions about conflicts of interest and the strategic direction of both companies.
Both Musk's pay package and the investment in xAI are expected to be approved by shareholders, reflecting the optimistic outlook of Tesla's investor base.

Summary

Elon Musk's Trillion-Dollar Pay Package

The episode opens with a discussion on Elon Musk's potential new pay package from Tesla, which could be worth an unprecedented $1 trillion if he meets certain ambitious goals for the company. Hosts David Papadopoulos, Max Chafkin, and Dana Hull dive into the implications of this massive package and what it signifies about Musk's relationship with his board and the company's future ambitions.

Historical Context of Musk's Compensation

The hosts reflect on Musk's previous pay package, which came under scrutiny in Delaware courts and highlighted the challenges of compensating a CEO who is already the richest person. There’s a comparison between the looming vote on the new pay package and the troubled history of Musk's past compensations, acknowledging the tensions between shareholder value and executive motivation.

Tesla's Investment in AI through xAI

In a twist, the episode also discusses Tesla's upcoming shareholder vote on whether to invest in Musk's AI company, xAI. The conversation reveals the complexities of this potential investment, considering the intertwined nature of Musk's ventures and how this decision reflects on the governance of Tesla. Kurt Wagner of Bloomberg Tech joins to provide insight into how the board's decision could impact Tesla's vision for the future.

Shareholder Sentiment and Vote Predictions

The discussion concludes with predictions about how the new pay package and the investment in xAI will fare at the upcoming shareholder meeting. The hosts express confidence that both measures will likely pass, owing to Musk's influence and the engaged nature of Tesla’s retail investor base.

Show notes

What do you give a man who has everything? $1 trillion of course. The news broke Friday that despite a seemingly waning interest in making cars and his alienation of many of Tesla’s customers, Elon Musk was offered a record-busting payday by the carmaker’s board. The catch? The South Africa native and richest person in the world (even before the $1 trillion) has to help the embattled automaker meet certain goals when it comes to company value and product development.

In this episode of Elon, Inc., host David Papadopoulos gathers Bloomberg Businessweek’s Max Chafkin and Bloomberg News Elon Musk reporter Dana Hull to discuss the new pay package, its stipulations (such as growing Tesla’s market value to $8.5 trillion and delivering 1 million robots in ten years) and how likely it is that investors will approve the payout.

Speaking of the Nov. 6 shareholder meeting, the crew is also joined by Bloomberg tech reporter Kurt Wagner to discus another investor matter: whether Tesla should invest in Musk’s artificial intelligence startup xAI (the conflict of interest practically writes itself). Also of note is the idea that a company like Tesla that’s increasingly turning to AI would invest in another AI company. Wagner tries his hardest to explain the situation and adds a substantial caveat: according to the proxy, the shareholder vote won’t be binding.

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