Why Elon Musk hitting the $1T milestones might not be a good bet

Yale School of Management executive fellow and "Picking Presidents" author, Gautam Mukunda, joins Market Domination host Josh Lipton to discuss Tesla (TSLA) CEO Elon Musk's recently approved $1 trillion pay package and to explain why he doesn't believe the pay package milestones are realistically achievable.

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Video Transcript

00:00 Speaker A

Tesla, all right, they they approved the pay package. These are some some big milestones Musk would need to hit. I I think it's just worth taking a step here and repeat them. Tesla has to deliver 20 million Teslas. Now that that actually sounds like the relatively easy part. Deploy 1 million robo taxis, deploy 1 million robit robots, has to hit 400 billion of adjusted EBITDA over four separate quarters. I guess stop right there Gotham, do you do you think, would you place your bed, Musk will actually hit these milestones and get that payday?

00:41 Gotham

No. Uh, I would not. Um, just because the, I mean, if you look at Tesla, the underlying fundamentals are, they haven't had a successful major product launch, right? Like, they have not had a new car come out that has done well in the market in five years, and they don't appear to have any prospects of one coming soon. Uh, and then that's even setting aside the problem of that with uh automated taxis where again, they are not the technology leader or autonomous robots where they are not the technology leader. The evidence that Tesla is going to dominate these industries is that Elon Musk says they will. That's it. So no, I wouldn't I wouldn't take that bet.

01:29 Speaker A

This pay package did pass though Gotham. with 75% of support among voting shares. Um, what did you make of that? Were you surprised by that Gotham?

01:42 Gotham

No, not at all. Um, if you are invested in Tesla right now, it's because you believe that essentially that Elon Musk has magical powers. That the fact that Elon Musk is has this track record of doing extraordinary things and I'm not, it it takes nothing away from the scale of his achievements in, you know, pushing electric cars forward by a generation or basically inventing the modern commercial space industry with SpaceX. It doesn't take anything away from the scale of his achievements to say that there's that that doesn't mean he can do it again, right? It doesn't mean that you can't there's not an infinite chain of miracles here. But that's how Tesla is being valued. So if you are invested in Tesla right now, you believe that he can do it again. And if you believe that he can do it again, if you believe he has magic powers, well then you should vote yes because then it makes sense.

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