WEBVTT - Elon Fights for His Pay Package… and With Altman... And Cook 0:00:03.120 --> 0:00:11.080 Bloomberg Audio Studios, podcasts, radio news. 0:00:14.240 --> 0:00:17.160 Well, Elon Musk gives now the richest person on the planet. 0:00:17.480 --> 0:00:20.319 More than half the satellites in space are owned and 0:00:20.440 --> 0:00:22.160 controlled by one man. 0:00:22.760 --> 0:00:25.759 Well, he's a legitimate, super genius, legitimate. 0:00:25.960 --> 0:00:28.600 He says, He's always voted for Democrats, but this year 0:00:28.640 --> 0:00:29.400 it will be different. 0:00:29.440 --> 0:00:30.400 He'll vote Republican. 0:00:30.680 --> 0:00:33.159 There is a reason the US government is so reliant 0:00:33.159 --> 0:00:35.720 on him. Alon Musk is a scam artist and he's 0:00:35.760 --> 0:00:36.440 done nothing. 0:00:38.000 --> 0:00:40.680 Anything he does, he's fascinating the people. 0:00:50.680 --> 0:00:54.400 Welcome to elan Ink, Bloomberg's weekly podcast about Elon Musk. 0:00:54.440 --> 0:01:00.480 It's Tuesday, June eleventh. I'm your host, David Popodopolis. We 0:01:00.520 --> 0:01:05.840 are talking Tesla, specifically about the upcoming shareholder meeting to determine, 0:01:06.000 --> 0:01:10.560 among other things, Elon Musk's pay package. It's a controversial 0:01:10.600 --> 0:01:13.920 topic as a Delaware judge throughout his previous fifty six 0:01:13.959 --> 0:01:18.640 billion dollar compensation, and there are people campaigning loudly on 0:01:18.680 --> 0:01:21.080 both sides. We're gonna hear from some of them and 0:01:21.200 --> 0:01:26.360 also consider the current comatose state of Tesla stock. Ultimately, 0:01:26.520 --> 0:01:29.679 the question is how much does this vote matter? 0:01:30.440 --> 0:01:30.880 A lot? 0:01:30.959 --> 0:01:34.200 It turns out to Elon, but probably much less to 0:01:34.240 --> 0:01:37.679 the woman who holds his fate in her hands. Lastly, 0:01:38.200 --> 0:01:41.880 we'll dissect a sudden and explosive feud with not one, 0:01:42.120 --> 0:01:47.319 but two two of Elon's rivals talk about all these things. 0:01:47.360 --> 0:01:50.720 We are joined by our all star panel, Max Chafkin, 0:01:50.920 --> 0:01:54.800 senior writer at Bloomberg Business Week, Colomax Hey, David Hey, 0:01:55.440 --> 0:02:00.200 and Dana hall our Ace Elon Musk reporter Dana Welcome Hey. 0:02:00.720 --> 0:02:03.320 Later on, Esha Day, a senior reporter with the Market's 0:02:03.320 --> 0:02:06.040 team who focuses on evs, will join us to talk 0:02:06.200 --> 0:02:11.360 Tesla stock. But Dana, let's jump right into it. The 0:02:12.200 --> 0:02:16.520 vote on Elon's pay package, among other votes, will happen 0:02:16.560 --> 0:02:19.880 on Thursday, But just remind us of what happened back 0:02:19.880 --> 0:02:22.800 in the courtroom in January and what's occurred in the 0:02:22.840 --> 0:02:23.400 month since. 0:02:24.320 --> 0:02:26.000 Yeah, So, to back up for a little bit, in 0:02:26.080 --> 0:02:31.680 twenty eighteen, shareholders overwhelmingly approve this kind of crazy like 0:02:31.880 --> 0:02:36.440 staggering moonshot pay package that was supposed to incentivize Elon 0:02:36.520 --> 0:02:39.920 Musk to stay focused on Tesla. At the time, everybody 0:02:39.960 --> 0:02:41.720 thought it was crazy, but he hit all of the 0:02:41.720 --> 0:02:44.320 milestones and became the richest man in the world. In 0:02:44.360 --> 0:02:48.800 the process. The problem is that Tesla's board is filled 0:02:48.800 --> 0:02:52.480 with his people, like his brother Kimball and his friends 0:02:52.760 --> 0:02:54.880 and in you know, many critics would say that it's 0:02:54.880 --> 0:02:59.399 a captive board, and a shareholder sued over these issues, 0:02:59.560 --> 0:03:02.720 and litigation went on for years. I flew to Delaware 0:03:02.760 --> 0:03:06.519 to watch Elon Musk and former board member Antonio Gracias 0:03:06.600 --> 0:03:10.240 testify in court, and then in January, the judge in 0:03:10.320 --> 0:03:13.720 Delaware basically came out and sided with the shareholder and said, 0:03:13.800 --> 0:03:16.520 you know, this board is like captive and rife with 0:03:16.600 --> 0:03:19.920 conflicts of interest, and the board really didn't negotiate this 0:03:19.960 --> 0:03:23.880 pay package and this is hugely problematic. So she voided 0:03:23.919 --> 0:03:28.600 the deal. Elon got furious and now to sort of 0:03:28.639 --> 0:03:31.200 remedy all of the faults that she found with the 0:03:31.240 --> 0:03:35.080 twenty eighteen package. Tesla is doing this kind of weird, 0:03:35.880 --> 0:03:39.560 risky novel legal strategy where they're bringing the same package 0:03:39.600 --> 0:03:43.480 before shareholders again six years later, in the hopes that 0:03:43.560 --> 0:03:46.480 like having a revote, will somehow convince the Delaware court 0:03:46.520 --> 0:03:49.839 system that everything is now fine okay. 0:03:49.600 --> 0:03:51.320 And that's where we stand out now, Max and Dee, 0:03:51.320 --> 0:03:54.320 this is a pretty unusual pay package. I feel like 0:03:54.360 --> 0:03:56.880 when you talk about CEOs of big companies here in 0:03:56.920 --> 0:04:00.240 the US, you talk about millions with an M, I 0:04:00.240 --> 0:04:04.120 mean billions with the bee as part of you know, 0:04:04.280 --> 0:04:08.080 bonus included and all that is is almost unheard of. 0:04:08.240 --> 0:04:10.840 Right when you see big numbers like this in the billions, 0:04:10.880 --> 0:04:13.680 it's almost always like a huge amount of stock, which 0:04:13.720 --> 0:04:14.760 is which is what this was. 0:04:14.800 --> 0:04:16.440 This was not a cash compensation. 0:04:16.520 --> 0:04:18.840 This was the board giving him a huge number of 0:04:19.120 --> 0:04:22.640 stock options, which is kind of normal in the world 0:04:22.720 --> 0:04:25.960 of startups, you know, much smaller companies, but is and 0:04:26.120 --> 0:04:28.919 even the kind of structure of this and the upside 0:04:28.960 --> 0:04:30.400 and all that, it would be kind of normal if 0:04:30.440 --> 0:04:33.239 this were a much much smaller company with a few 0:04:33.480 --> 0:04:34.799 venture capital investors. 0:04:35.000 --> 0:04:36.120 Very unusual in this case. 0:04:36.160 --> 0:04:38.680 Of course, Elon has always kind of wanted to run 0:04:38.720 --> 0:04:42.839 Tesla as his as if he were running a private company, 0:04:43.080 --> 0:04:46.080 which you know, creates it creates certain opportunities. 0:04:46.080 --> 0:04:49.080 I mean, he's even said he's flirted recently with the 0:04:49.120 --> 0:04:51.520 idea of taking Keesla private again, right right. 0:04:51.440 --> 0:04:53.159 And he of course we all know he did the 0:04:53.160 --> 0:04:56.880 funding secured thing. He's he's done this multiple times. I mean, 0:04:56.880 --> 0:04:59.680 you know, it has it creates certain things that I 0:04:59.680 --> 0:05:02.960 think work really well for Tesla, and we're but we're 0:05:03.040 --> 0:05:06.839 running into a situation where, yeah, it seems like maybe 0:05:06.880 --> 0:05:10.480 there's some fundamental problems with how Elon thinks of himself 0:05:10.520 --> 0:05:12.640 and his role within the company, you know, vis a 0:05:12.720 --> 0:05:16.880 vis the American legal system in the Delaware courts and 0:05:16.880 --> 0:05:17.200 so on. 0:05:17.360 --> 0:05:19.799 All Right, so I want to listen for a second 0:05:19.880 --> 0:05:23.320 to the yes case and the no case, i e. 0:05:23.800 --> 0:05:27.520 Those who are arguing that yes, we the shareholders of 0:05:27.560 --> 0:05:32.440 Tesla should give Elon his pay package, or no we shouldn't. 0:05:32.560 --> 0:05:34.720 We're going to listen to the yes case first, as 0:05:34.760 --> 0:05:37.640 expressed by Ron Baron, who's a big Tesla shareholder, and 0:05:37.680 --> 0:05:40.200 he said this on CNBC the other. 0:05:40.120 --> 0:05:42.599 Day, I think in the next ten years we'll probably 0:05:42.680 --> 0:05:45.760 make four or five times our money again in Tesla. 0:05:45.880 --> 0:05:48.960 So so he's created tremendous wealth for people, and he 0:05:49.120 --> 0:05:52.160 was paid. If his contract is enforced, which I think 0:05:52.200 --> 0:05:55.440 it should be, he's paid fifty six billion dollars. So 0:05:55.440 --> 0:05:57.680 it's like winning the lottery. You know, if you and 0:05:57.880 --> 0:05:59.400 Joe was talking about it before he win the lottery, 0:05:59.400 --> 0:06:01.680 you don't tell someone I'm sorry you won so much money. 0:06:01.680 --> 0:06:02.240 You have to give it. 0:06:02.440 --> 0:06:04.240 I remember think that's the yes case. 0:06:04.720 --> 0:06:08.760 The no case we get from Earl Fronk puppy banning. 0:06:09.120 --> 0:06:09.600 I think the. 0:06:09.600 --> 0:06:13.480 Court rightfully pointed out some significant problems with the initial 0:06:13.520 --> 0:06:19.920 disclosure of the compackage. Also, the court ruling has pointed 0:06:19.960 --> 0:06:23.640 out obvious problems with the general governance of Tesla, which 0:06:23.640 --> 0:06:29.200 would become so profound over time as you watch elon 0:06:29.360 --> 0:06:33.200 by a social media company and tarnish the brand and 0:06:33.440 --> 0:06:37.400 seem to be a part time CEO. This no vote 0:06:37.480 --> 0:06:40.760 is an opportunity for shareholders to speak up about these 0:06:40.839 --> 0:06:45.280 issues and hopefully bring some rational governance back to Tesla. 0:06:45.400 --> 0:06:48.720 Thank you now, Dan, What's up with this frunk puppy name? 0:06:49.000 --> 0:06:49.120 So. 0:06:49.279 --> 0:06:51.960 Earl is a fascinating guy. I've known him for a 0:06:52.000 --> 0:06:55.320 long time. He is a big Tesla fan, and he's 0:06:55.400 --> 0:06:58.600 very active on x for really known as Twitter, and 0:06:59.000 --> 0:07:01.840 he's very funny. He's got a great meme game. He's 0:07:01.920 --> 0:07:04.880 been like one of these longtime retail shareholders who is 0:07:05.000 --> 0:07:08.360 very active in the in the Tesla community as it is, 0:07:08.760 --> 0:07:12.040 and the fact that Earl is voting no is significant 0:07:12.080 --> 0:07:16.320 because Tesla has been actively courting retail investors that the 0:07:16.400 --> 0:07:19.200 dynamic here of the before the vote on Thursday is 0:07:19.240 --> 0:07:23.800 that large institutional investors, including mostly pension funds, as well 0:07:23.840 --> 0:07:27.040 as proxy advisors Iss and Glass Lewis, are very much 0:07:27.040 --> 0:07:29.760 against the ratification of the pay package. They're very worried 0:07:29.760 --> 0:07:34.400 about further dilution, and so Tesla is actively courting its 0:07:34.440 --> 0:07:37.880 you know, loyal retail base to vote yes, and Earl 0:07:38.360 --> 0:07:40.040 is kind of like a prime example of one of 0:07:40.040 --> 0:07:43.320 the retail shareholders who is very vocally voting no. 0:07:44.120 --> 0:07:47.520 Right, And so the fronk puppy isn't happy. So but 0:07:47.560 --> 0:07:50.600 that gets at something that I really want to lean 0:07:50.640 --> 0:07:52.880 into for a second here. So we know, Dana that 0:07:52.960 --> 0:07:56.440 last time back in eighteen, the vote was pretty much 0:07:56.520 --> 0:08:00.200 a landslide for Elon right the board. 0:08:00.040 --> 0:08:05.600 Seventy three percent of the vote's cast were for Elon. 0:08:05.800 --> 0:08:09.800 And at the time, you know, Tesla's investor relations department 0:08:09.880 --> 0:08:13.640 did a real vigorous job of kind of selling this 0:08:13.640 --> 0:08:17.720 this you know, unprecedented compensation plan to its largest investors. 0:08:17.760 --> 0:08:21.000 But a lot has changed since twenty eighteen. Tesla is 0:08:21.040 --> 0:08:22.720 now in the S and P five hundred, which means 0:08:22.720 --> 0:08:26.320 that there's more index funds and more passive investing Elon 0:08:26.520 --> 0:08:29.840 bought x or, bought Twitter and renamed it x Elon 0:08:29.960 --> 0:08:33.240 started another company. The stock is tanking, so like it 0:08:33.280 --> 0:08:36.160 is a very different dynamic. The shareholder base has shifted, 0:08:36.760 --> 0:08:39.600 just the whole perception of Elon as a CEO has shifted. 0:08:40.080 --> 0:08:43.080 And to me, what's very funny is that the whole 0:08:43.080 --> 0:08:45.360 point of the twenty eighteen package was to keep Elon 0:08:45.480 --> 0:08:48.520 focused on Tesla. You could argue that that has not worked. 0:08:48.679 --> 0:08:50.640 I would say yeah, I would say not. I think 0:08:50.679 --> 0:08:53.800 he probably founded like three additional companies in the time 0:08:53.840 --> 0:08:55.760 since I mean obviously the stock for the most part 0:08:55.800 --> 0:08:57.280 did quite well until it didn't. 0:08:57.280 --> 0:09:01.280 But just imagine how many companies he would he had. 0:09:01.679 --> 0:09:05.280 You'd have seventy companies right now. Had not give him 0:09:05.280 --> 0:09:05.559 that much. 0:09:05.559 --> 0:09:08.520 You know, the pitch back then, even if you were 0:09:08.520 --> 0:09:10.880 a skeptic, I think was a little if, even if 0:09:10.880 --> 0:09:13.360 you were thinking the way Frank Puppy is thinking, was 0:09:13.360 --> 0:09:15.839 a little easier to swallow because it was sort of like, yes, 0:09:16.200 --> 0:09:18.760 this is an insane amount of money, but he only 0:09:18.800 --> 0:09:21.920 gets it if our market cap goes up like tenfold, 0:09:22.040 --> 0:09:24.240 So like, you know, it's it's sort of like a 0:09:24.640 --> 0:09:26.880 you know, win win. What's what's difficult here is it's 0:09:26.920 --> 0:09:29.760 now backward looking. I mean, the market cap is what 0:09:29.800 --> 0:09:32.319 it is, it's actually slightly it's fallen a little bit, 0:09:32.520 --> 0:09:35.520 you know, of course over the last you know, year 0:09:35.640 --> 0:09:38.640 or so. But it's but but the thing is, it's 0:09:38.679 --> 0:09:41.160 sort of like Tesla's in the position of saying, well, 0:09:41.280 --> 0:09:44.320 we have to honor the deal, and you know, and 0:09:44.360 --> 0:09:48.600 some Tesla shareholders, I think understandably, especially given how much 0:09:48.600 --> 0:09:52.480 how Elon Musk is behaving, especially given all the sort 0:09:52.480 --> 0:09:55.360 of big questions about his focus, are sort of I 0:09:55.360 --> 0:09:57.920 think thinking it'd be nice to get out of it, right. 0:09:57.960 --> 0:10:00.320 I mean, the thing at the time and a teen 0:10:00.600 --> 0:10:04.560 was I'm handing you these options to get you to 0:10:04.679 --> 0:10:07.640 focus and drive the company forward and turn it into 0:10:07.760 --> 0:10:13.280 this enormously valuable company, which he did once that struck down, Okay, 0:10:13.320 --> 0:10:16.360 and now he doesn't have it. Well the sort of 0:10:16.400 --> 0:10:18.160 the max to your point, right, the value now is 0:10:18.200 --> 0:10:20.000 the value? Why do I I don't know, if I'm 0:10:20.000 --> 0:10:21.480 a shareholder, why do I need to give you that 0:10:21.600 --> 0:10:22.920 money for past performance? 0:10:23.040 --> 0:10:23.199 Right? 0:10:23.320 --> 0:10:25.280 I think the idea is that, like the guy does 0:10:25.400 --> 0:10:27.240 need to get paid. I mean, at some point they're 0:10:27.280 --> 0:10:29.320 going to have to figure out how to compensate him 0:10:29.440 --> 0:10:32.040 for his work over the past six years. And that's 0:10:32.080 --> 0:10:34.959 certainly the argument that like Robin Denholm, the chair of 0:10:35.000 --> 0:10:36.959 the Tessel board, and all of the bulls are making 0:10:37.000 --> 0:10:39.000 like a deal is a deal, like pay the man 0:10:39.320 --> 0:10:42.160 like he does need to be compensated in some way. 0:10:43.000 --> 0:10:46.920 Yeah, Dan, Actually we have a clip of Robin pitching 0:10:47.360 --> 0:10:49.200 the yes vote, and here it is. 0:10:49.320 --> 0:10:52.760 The Tesler of today is utterly transformed from the Tesler 0:10:52.840 --> 0:10:56.400 it was in twenty eighteen. Thanks in large part to 0:10:56.480 --> 0:11:00.800 Elon's leadyship and vision, we are on the of our 0:11:00.880 --> 0:11:04.679 next great growth waves. You have seen for yourself what 0:11:04.880 --> 0:11:09.560 five years under the leadership of an incentivized Elon can, 0:11:09.640 --> 0:11:13.840 due to the value of your investment, protect that same 0:11:14.000 --> 0:11:17.000 value creation potential for the future. 0:11:17.559 --> 0:11:19.440 Man, that's a very good accent. It almost makes me 0:11:19.480 --> 0:11:22.880 want to vote yes myself. But I wonder, Dana, if 0:11:23.000 --> 0:11:26.240 Elon or perhaps Robin would probably say, hey, no, nobody 0:11:26.240 --> 0:11:29.040 put me up to this. But it seems like internally 0:11:29.080 --> 0:11:32.479 within the company there are a lot of Tesla employees, 0:11:32.760 --> 0:11:35.920 high ranking employees, getting out pushing the yes case. Perhaps 0:11:35.920 --> 0:11:38.200 speaks to a bit of the sense of urgency inside 0:11:38.360 --> 0:11:40.560 team Elon, Oh for sure. 0:11:40.600 --> 0:11:42.679 I mean they have a sense of the vote count, right, 0:11:42.720 --> 0:11:46.120 and they know what percentage of retail investors have voted, 0:11:46.160 --> 0:11:49.120 and they are actively talking to their largest holders and 0:11:49.160 --> 0:11:50.679 they know where they stand. I mean, just over the 0:11:50.720 --> 0:11:54.120 weekend we saw Norway's Sovereign Wealth Fund, which is a 0:11:54.120 --> 0:11:56.480 top ten holder, come out and say that they're are no. 0:11:56.679 --> 0:11:58.079 I mean, the way to think about this is, this 0:11:58.120 --> 0:12:02.000 is a political campaign. Is the candidate, his pay package, 0:12:02.240 --> 0:12:06.280 is the platform, and you've got surrogates from the board, 0:12:06.520 --> 0:12:10.599 Ron Barron, Kathy Wood like coming out on CNBC and elsewhere, 0:12:10.640 --> 0:12:13.160 like talking about the s case. So it's like this 0:12:13.200 --> 0:12:15.120 is a campaign with like a lot of surrogates. But 0:12:15.800 --> 0:12:18.560 they wouldn't be running such a hard campaign if they 0:12:18.600 --> 0:12:20.480 had the votes. Like, this is going to be a 0:12:20.600 --> 0:12:25.120 very close vote, and I personally think that it will pass, 0:12:25.280 --> 0:12:27.480 but it's not going to pass by the margin that 0:12:27.520 --> 0:12:30.520 it did in twenty eighteen because it's just a very 0:12:30.520 --> 0:12:31.560 different company. 0:12:31.240 --> 0:12:33.839 Now, it's a different Yeah, it's a different company in 0:12:33.880 --> 0:12:34.400 a different time. 0:12:39.000 --> 0:12:39.600 Okay, Max. 0:12:39.640 --> 0:12:42.840 Now, even if the vote is yes in the end, 0:12:42.960 --> 0:12:45.800 which as Dana is telling us, is the base case here, 0:12:46.280 --> 0:12:50.920 does it actually even matter is it binding here? I mean, 0:12:51.040 --> 0:12:53.520 the reality is the judge doesn't have to take this 0:12:53.600 --> 0:12:55.240 vote into account if she doesn't want to. 0:12:55.360 --> 0:12:56.040 No. 0:12:56.040 --> 0:12:58.679 No, Dana is comparing to a political campaign, which I 0:12:58.679 --> 0:13:02.800 think is right in this that like perceptions and spin 0:13:02.880 --> 0:13:05.479 are going to be really important in kind of evaluating 0:13:05.559 --> 0:13:07.839 the result of this thing. But it's more like it's 0:13:07.880 --> 0:13:11.000 not like a presidential general election. It's more like a 0:13:11.000 --> 0:13:13.920 primary in a state that doesn't really matter on its own. 0:13:14.000 --> 0:13:15.960 Like think like the Iowa. 0:13:15.600 --> 0:13:19.280 Caucus, right, the Iowa Caucus doesn't decide the IO any Yeah, exactly, 0:13:19.280 --> 0:13:21.360 but it isn't It isn't binding in the sense that 0:13:21.400 --> 0:13:23.520 it's not going to decide the election, but it is 0:13:23.600 --> 0:13:27.160 gonna shape what happens next. And I do think here, 0:13:28.440 --> 0:13:32.160 if it passes, it seems like the path is pretty clear. Right, 0:13:32.200 --> 0:13:35.320 They're going to appeel the Delaware Court decision. They're going 0:13:35.400 --> 0:13:37.840 to say, look like, we disclosed all this stuff to 0:13:37.880 --> 0:13:38.480 our shareholders. 0:13:38.480 --> 0:13:39.240 They're still for. 0:13:39.200 --> 0:13:40.080 It, dear Judge. 0:13:41.000 --> 0:13:43.880 Mind now, But if it fails, or if it passes 0:13:44.120 --> 0:13:46.920 very narrowly, I think it's pretty bad. And it's and 0:13:47.000 --> 0:13:50.199 I think it's especially bad if it fails because then 0:13:50.440 --> 0:13:52.800 all of a sudden like I don't know, like they're 0:13:52.880 --> 0:13:55.440 legal strategies out the window. They're gonna be They're gonna 0:13:55.440 --> 0:13:57.160 be kind of back where they started, and I think 0:13:57.160 --> 0:14:00.160 they're gonna have to start to think about renegotiating and 0:14:00.520 --> 0:14:02.559 pay at a lower level, which is gonna send Elon. 0:14:02.760 --> 0:14:05.960 It's gonna send him ballistic. I mean I would think 0:14:06.000 --> 0:14:08.800 that to a certain degree. If it is a no vote, 0:14:09.080 --> 0:14:12.679 given Elon has publicly threatened to take his toys and 0:14:13.200 --> 0:14:17.440 leave Tesla, it would essentially be the shareholders calling his bluff, 0:14:17.800 --> 0:14:22.040 like dude, go, there's the door, and then the question is, 0:14:22.280 --> 0:14:24.000 Dana does he go? 0:14:24.560 --> 0:14:26.680 I think it depends on how much of a narcissistic 0:14:26.800 --> 0:14:29.480 injury a no vote would be to him. Because he 0:14:29.600 --> 0:14:32.920 is still like the largest shareholder in the company. He's 0:14:32.960 --> 0:14:36.920 got thirteen percent. It is hard to imagine him being 0:14:37.000 --> 0:14:41.800 so upset that he would just quit. But he's an unpredictable, 0:14:42.160 --> 0:14:46.520 very emotional person, and you have to kind of wargame 0:14:46.560 --> 0:14:49.720 for every scenario. It's just funny, like an autopileo engineer 0:14:49.800 --> 0:14:52.400 will like be on X saying, oh my Elon's so great, 0:14:52.440 --> 0:14:53.920 I've learned so much from him, and then you hear, 0:14:54.000 --> 0:14:57.640 then Elon will respond like much appreciated. It's like how 0:14:58.080 --> 0:15:00.960 It's like how grassroots is this CA campaign? And then 0:15:01.360 --> 0:15:04.640 on the other side, you know Norway's sovereign wealth fund. 0:15:04.960 --> 0:15:08.520 You know some pension fund trunk puppy. Here's amalgamated back 0:15:08.920 --> 0:15:12.400 frunk pugpy. Another big shareholder is this guy Leo who 0:15:12.480 --> 0:15:16.920 is in Singapore. He's like one of the largest retail shareholders. 0:15:16.960 --> 0:15:20.200 He's absolutely a no. And uh, I think it's just 0:15:20.240 --> 0:15:21.800 going to be super close. I would love to be 0:15:21.800 --> 0:15:24.200 able to figure out the title vote telle. I'm like 0:15:24.240 --> 0:15:26.440 a Senate majority leader. I've got this like whip list 0:15:26.520 --> 0:15:29.080 in my head, Like every day it shifts a little bit, 0:15:29.080 --> 0:15:31.400 and I have to tell you, Like Tesla employees are 0:15:31.400 --> 0:15:33.920 telling me that they're getting phone calls like asking them 0:15:33.960 --> 0:15:36.280 have you voted? And if someone says no, they're like, oh, 0:15:36.560 --> 0:15:38.600 would you want to vote right now? Like they are 0:15:38.680 --> 0:15:42.760 really pushing retail. They're calling people, They're emailing people like 0:15:42.840 --> 0:15:44.400 shareholders have gotten voicemails. 0:15:44.480 --> 0:15:45.440 Why wait wait wait wait wait. 0:15:45.440 --> 0:15:48.640 But so they're calling their own employees who own the 0:15:48.680 --> 0:15:52.280 stock and they're saying, dear sir, have you big brother? 0:15:52.360 --> 0:15:54.600 Oh you haven't, big Brother would like you to vote. 0:15:54.640 --> 0:15:57.640 Now, well, they really want you to vote, I mean, 0:15:57.720 --> 0:16:00.800 and there is a website called vote Tesla com Tesla's 0:16:00.880 --> 0:16:01.600 running ads. 0:16:02.000 --> 0:16:04.720 There's a video on the Tesla website and you know, 0:16:04.760 --> 0:16:08.360 being distributed on social media that we're optimists. The robot 0:16:08.520 --> 0:16:11.360 that Elon Musk has said will be the greatest consumer 0:16:11.360 --> 0:16:13.520 product of all time. You know it's gonna be worth 0:16:13.520 --> 0:16:16.560 many trillions of dollars is also pitching the vote. 0:16:16.640 --> 0:16:17.480 It's talking. 0:16:17.600 --> 0:16:19.720 Oh really, it's talking to you and telling you the 0:16:19.720 --> 0:16:21.160 Tesla shareholder. 0:16:21.000 --> 0:16:22.640 As convincingly as Robin Dennie. 0:16:22.920 --> 0:16:25.360 They're pulling Yeah, they're pulling out all the stops. 0:16:25.800 --> 0:16:27.840 Your vote decides the future of Tesla. 0:16:28.360 --> 0:16:30.440 We made it easy to cast your vote any of 0:16:30.520 --> 0:16:34.440 three ways, online, by QR code, or by phone. 0:16:35.320 --> 0:16:37.560 All right, the the bots pushing me, all right, Dana, 0:16:37.600 --> 0:16:39.880 before we move on. Of course, the pay package isn't 0:16:39.880 --> 0:16:42.480 the only thing being voted on on Thursday. Any other 0:16:42.560 --> 0:16:45.240 highlights that will come up in terms of votes at 0:16:45.280 --> 0:16:46.200 the shareholder meeting. 0:16:47.080 --> 0:16:49.800 Yeah, so there are twelve resolutions. I'm sure that every 0:16:49.840 --> 0:16:53.400 listener of the Elon podcast has carefully read the very 0:16:53.440 --> 0:16:56.840 long single one of them proxy, every single word of 0:16:56.840 --> 0:17:00.240 the proxy. But there's twelve resolutions. I think you know 0:17:00.240 --> 0:17:02.480 at the very beginning we're going to hear so two 0:17:02.600 --> 0:17:06.880 board members are up for reelection, James Murdoch and Kimball Musk, 0:17:06.960 --> 0:17:09.360 Elon's younger brother. That's going to be key to watch. 0:17:09.440 --> 0:17:11.919 There could be like a revolt against those two. And 0:17:11.960 --> 0:17:15.920 then proposal three is you know, moving the company's legal 0:17:15.960 --> 0:17:19.560 headquarters from Delaware to Texas. And then proposal four is 0:17:19.600 --> 0:17:21.320 the pay and then there's other things about like the 0:17:21.400 --> 0:17:24.480 right to unionize. So the pay package is the big one, 0:17:24.480 --> 0:17:26.399 but we've got to pay attention to the other ones 0:17:26.440 --> 0:17:28.760 as well, And we could have a split scenario where 0:17:28.800 --> 0:17:32.600 like maybe shareholders say yes on Texas but no on pay. 0:17:33.080 --> 0:17:36.040 Maybe maybe it's yes on James Murdoch, no on Kimball. 0:17:36.040 --> 0:17:38.200 Like it could go many different ways. 0:17:38.640 --> 0:17:40.960 Okay, all right, So we'll see what the vote is 0:17:40.960 --> 0:17:44.879 on Thursday, and if there's some big shocker, perhaps elon 0:17:44.960 --> 0:17:47.639 Inkle listeners, we will be in your feed that evening 0:17:47.720 --> 0:17:50.880 or the following morning. We're gonna go on to talk 0:17:50.880 --> 0:17:53.800 about Keesslas Stock and to do so, we're bringing in 0:17:53.960 --> 0:17:59.120 Esha Day, Senior Reporter, and the market's team Air Bloomberg. Welcome, Mesha. Hello, 0:17:59.600 --> 0:18:03.720 So the last time you were on, you told us 0:18:03.240 --> 0:18:08.880 in our vast audience that Tesla is a wildly volatile stock, 0:18:09.000 --> 0:18:11.560 perhaps the most vowatile in all of the s and P. 0:18:11.640 --> 0:18:14.320 Five hundred and I am as I look at the 0:18:14.320 --> 0:18:18.600 Bloomberg terminal, I see a stock that is comatosed, flatline, 0:18:18.880 --> 0:18:22.359 boring as hell? What is going on, Esha? 0:18:22.440 --> 0:18:25.000 I like that word boring And who would think of, 0:18:25.480 --> 0:18:28.040 you know, using that word along with Tesla or elon 0:18:28.119 --> 0:18:28.880 Moscow that matter? 0:18:28.960 --> 0:18:29.120 Right? 0:18:29.240 --> 0:18:32.919 But sure, if you look at Tesla shares over the 0:18:32.920 --> 0:18:35.520 past month or so, the stock has been trading between 0:18:35.680 --> 0:18:39.920 a very very tight range about like ten twelve dollars usually, 0:18:40.359 --> 0:18:43.159 and that is not typical of the Tesla stock. 0:18:43.320 --> 0:18:43.520 Right. 0:18:44.040 --> 0:18:46.119 Let's take a look at some of the measures that 0:18:46.200 --> 0:18:50.360 traders usually look at, For example, historical volatility. It's basically 0:18:50.440 --> 0:18:52.680 a measure to kind of get a sense of how 0:18:52.720 --> 0:18:55.840 the stock price has been fluctuating in over a certain 0:18:55.840 --> 0:19:00.480 period of time. So Tesla shares historical volatility over ten 0:19:00.560 --> 0:19:03.359 day period last week, I think last Friday will be 0:19:03.400 --> 0:19:07.800 precise drop to its lowest since October of twenty twenty one. 0:19:08.680 --> 0:19:10.919 So that tells you that this is a typical of 0:19:11.119 --> 0:19:13.960 Tesla's stock, But at the same time, this is rather 0:19:14.080 --> 0:19:17.399 typical of a stock that is kind of expecting a 0:19:17.440 --> 0:19:21.520 milestone event that could lead to further volatility in the future. 0:19:21.880 --> 0:19:25.080 Whenever I see a stock behaving this way, beat Tesla 0:19:25.359 --> 0:19:28.600 or any other name, what it tells me is that 0:19:28.680 --> 0:19:32.920 investors are moving to the sidelines, and that that is understandable. 0:19:32.960 --> 0:19:36.040 Investors try to move to the sideline and kind of 0:19:36.119 --> 0:19:38.919 hunker down when they think that there will be a 0:19:38.920 --> 0:19:41.840 lot of volatility in the recent time, right. 0:19:41.920 --> 0:19:46.280 So the milestone event, the breakout essentially that they're waiting 0:19:46.280 --> 0:19:48.840 for higher or lower is do we is our sense 0:19:48.840 --> 0:19:51.520 that it's tied to the pay package vote. 0:19:51.240 --> 0:19:55.080 One hundred percent. So a lot of the conversation, I 0:19:55.080 --> 0:19:57.240 would say, most of the conversations I've been having with 0:19:57.320 --> 0:20:00.880 investors and market watchers and just like broadly stock watches 0:20:00.920 --> 0:20:03.960 and pundits, it has been that this is a near 0:20:04.080 --> 0:20:08.040 term risk event for the stock, and that really is 0:20:08.640 --> 0:20:11.800 why we're seeing kind of this very little movement in 0:20:12.160 --> 0:20:16.080 the stock in the recent times. But then uncertainty is 0:20:16.240 --> 0:20:19.280 not just about the musk Bee package at this point, right, 0:20:19.600 --> 0:20:22.320 everything about Tesla is kind of shrouded in a lot 0:20:22.320 --> 0:20:24.600 of confusion and uncertain that at this point. 0:20:25.000 --> 0:20:28.280 Just to pause there for a second. So the concern 0:20:28.320 --> 0:20:31.520 again is that because if he wins the vote, I 0:20:31.520 --> 0:20:34.399 suppose maybe the stock whatever ticks up a bit higher. 0:20:34.800 --> 0:20:37.639 But the concern is lo and behold, he loses the vote, 0:20:38.320 --> 0:20:41.399 and as Dana was saying earlier, he potentially gets so 0:20:41.600 --> 0:20:44.160 ticked off he just says, screw you all, I'm maddy 0:20:44.200 --> 0:20:47.280 here he walks, and then all of a sudden, the 0:20:47.320 --> 0:20:51.200