Elon Musk's $1T pay package is 'most absurd pay package in the history of business' investor says

Tesla EV Business Outlook [00:14]

• The speaker believes Tesla's EV sales have reached their peak potential, estimated at around 1.9 million units per year.
• Projections for the upcoming year suggest a decline, with an estimated 1.6 million cars sold.
• This is significantly below the original plan of over 10 million vehicles annually.
• The speaker criticizes analysts for not incorporating these realities into their growth projections.

  Unfortunately, I have to tell you, I think this is as good as it's going to get.

Affordability and Product Value [01:37]

• The concept of "more affordable models" is questioned, with the argument that stripping down a car and selling it for half price doesn't make it affordable but rather diminishes its value.
• This strategy is seen as a sign of weakness, indicating an inability to convince consumers to buy the product at its current value.
• The lack of advertising to create demand and the CEO's public image are cited as contributing factors to the disconnect.

  It's not affordable. I mean, if I rip out half the car and sell it for half price, it doesn't make the car more affordable.

Investment Stance and Full Self-Driving Concerns [02:14]

• The speaker has been consistently selling Tesla stock for months, viewing the current situation not as a new opportunity but as a continuation of a long-term selling strategy.
• While acknowledging that some shareholders remain die-hard fans, the firm's position has been reduced, now representing about 2% of their $4 billion in managed assets ($80 million).
• A major concern is the future of Full Self-Driving (FSD), with skepticism about its potential to work as promised, especially with a vision-only approach.
• The speaker contrasts Tesla's FSD performance with companies like Waymo, which are seen as successfully deploying autonomous driving technology.

  I'd like to be a bigger believer in Tesla, but I think the bigger issue I have is what's going to happen if full self-driving doesn't work.

Personal Experience with FSD [03:23]

• The speaker, a Tesla owner and Cybertruck driver, describes using FSD daily as an "experiment in disappointment."
• The system frequently requires disengagement and constant human attention, even for short distances.
• This is directly compared to Waymo rides, which provide a seamless and reliable autonomous experience, leading to frustration about unmet promises.
• The speaker has spent tens of thousands of dollars on FSD over the years with unsatisfactory results, leading to a desire for honesty about the technology's current capabilities.

  It's like right now when I go home, if I push drive me home and it's about 3 miles, it it just can't do it without me disengaging and I have to pay complete attention the entire time to the vehicle.

Elon Musk's Pay Package and Corporate Governance [04:26]

• The upcoming shareholder vote on Elon Musk's $1 trillion pay package is a significant point of contention.
• Musk's comments on the earnings call described proxy advisory firms (ISS and Glass Lewis) as "corporate terrorists" for their opposition.
• The speaker intends to vote "no" on the pay package, citing a general belief that CEOs are overpaid, but specifically calling Musk's package the "most absurd" ever created.
• Concerns are raised about the legality of the package, particularly the lack of genuine negotiation and the arbitrary nature of vesting terms, predicting further lawsuits.

  But this is the most absurd pay package that has ever been created in the history of of business.

Risk of Musk Leaving and Board Responsibility [06:04]

• The speaker dismisses the idea that Musk would leave Tesla if the pay package is not approved, comparing it to an empty threat and noting that his own wealth is heavily tied to Tesla's success.
• The current board is criticized for its lack of independence, being composed of friends and relatives who are "extremely overpaid to go along with everything."
• Despite the absurdity of the pay package, it is predicted to be approved due to this dynamic.
• This situation is labeled as the "worst example of shareholder governance in business history."

  So, his whole house of cards is predicated around Tesla being successful. So, he's not going anywher