Elon Musk is 'maniacally dedicated' to Tesla, analyst says

ARK Invest chief futurist, Brett Winton, joins Morning Brief host Julie Hyman to discuss the milestones included in Tesla (TSLA) CEO Elon Musk's $1 trillion pay package and whether the loftiness is a risk.

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Video Transcript

00:00 Speaker A

And we talk about the various milestones that Musk has to hit um in order to get, you know, there are these 12 tranches of this pay package. So it's not just in in one shot. It's going to take a while. He has to hit a bunch of different goals. Um if he doesn't given the timeline challenges he's had in the past,

00:19 Speaker A

What is the risk that he doesn't hit the goal on time, doesn't get that tranche of the pay package and sort of loses interest, right? Which has been a challenge with him in the past and was the whole reason or not the whole reason, but a reason that uh folks voted on this pay package in the first place. How how much of a risk do you view that?

00:42 Speaker B

No, I think he's, you know, maniacally dedicated to Tesla and he has been and he will continue to do so. I think that the value of the pay package is to um give him it's not the money that I think he's interested in or that we're even interested in necessarily giving him, it's the control. It's it's if he um can deliver on even a subset of these milestones, it would be really unprecedented in terms of shareholder return in history. Um and it would give him license to continue to push the company forward into the future.

01:06 Speaker B

So even if they don't deliver on all of them, and many of them we think are are quite achievable within our expectations for the company. Um it will give him additional control of the company to make sure that it is still at the leading edge of innovation even as it scales and becomes remarkably um cash flow generative.

01:23 Speaker B

The danger of having a company that that delivers a service that everybody uses and that kicks off a lot of cash, is it's easy for that company and its management team, um to really and its shareholders frankly to get kind of dumb, fat and lazy where they're like, oh this cash flow is nice. I'm satisfied to not deliver a better more compelling experience to my end customers because I can just dominate this particular subsegment of the value chain.

01:42 Speaker B

Well, we don't think that that is the best future for Tesla and nor does Elon Musk and that's why we're excited to have him, you know, continuing to push the company forward.

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