dives into the controversial $56 billion pay package approved for Tesla CEO Elon Musk. While the staggering compensation plan proves shareholders' confidence in Musk's leadership, the legal battles surrounding this decision are far from over.
And if you look back at the last vote, what we're going to be looking for today is, well, what of course, what is the result here?And in that case, you had 97 million disinterested shareholders saying yes, 23 million saying no.what is really the mandate for this pay package?Now, I don't know necessarily that if Elon Musk and Tesla have to relitigate this again and go up for a third vote and re propose if it doesn't pass muster here in Delaware.
It's on the autonomous side, which is the reason we anticipate that the stock will scale to 2600 in our base case.Uh in fact, the probability of autonomous has gone up dramatically here um because of breakthroughs in A I which Elon and his team are harnessing and this is a winner, take most opportunity.
Um I, I wanna dig more into autonomy, but first I wanna linger on the vote for a, a little bit more Kathy because what I'm curious about is, is Musk has been quite vocal of what he wants here.Um He has said that if the pay package didn't go through, although it seems like indications are it's going to go through.
Um I think what many people do not understand is uh Tesla is the largest A I project on Earth Autonomous mobility is the largest A I uh project. Uh autonomous mobility is three of the platforms, robotics, energy storage, and artificial intelligence, converging uh technologies that are going to create explosive growth.
And uh uh Elon epitomizes that right, in, in terms of A I in each of the projects, autonomous mobility here on earth and space uh and uh A I projects elsewhere.There are, there's A I uh uh they're harnessing A I there as well. If anything, the recent inflation data suggests interest rates will fall this year and the number of uh dot Plots is increasing once again, that should uh accrue to the benefit of our strategy.Uh The the the backup or the underperformance has had a lot to do with going from six interest rate cuts expected at the end of last year to at 1.0 or, or just one.
When uh when investors were seeking companies that they knew would not go bankrupt, big cash cushions, big cash flows uh much like now, much like now. And we had mentioned off air about how yes, there was no mention of the fact that in the proposal for Musk's pay package, for instance of, of whether they would condition him to bring those A IA I projects in house at Tesla that he wouldn't go elsewhere for them and things like that.
We're voting against what Tesla is requesting, but that's not an actual contest and, and they've created an environment here that is beyond the average shareholder meeting.Um So to, and to be clear and to give our viewers a bit of background, the last time you were in here talking to us Bruce, we were talking about Disney and Tryon and you were in fact working with Tryon on its quest against Disney.
Uh, there are unions, pensions, hedge, uh, sorry, unions and pensions and uh church and charitable group who said we're not going to be supportive.And that all makes sense. But the way his, his um enterprises are intertwined, I don't see him not putting some real priority into J Bruce.Well, coming up our special coverage of the Tesla shareholder meeting continues as we await the final vote on Elon Musk's pay package.The Tesla shareholder meeting is underway and one of the key proposals up for a vote is the company moving its incorporation from Delaware to Texas.
But because that's a business judgment, but giving money away is unrelated to the company, corporate purpose.And because if you don't, nobody invests or at least you don't get their capital. He hits his financial bogeys, he hits his financial targets and the judge steps in and strikes it down.Well, the judge found that there was no negotiation really between Musk and the board that the board was not independent of Musk.
At that point, she had to protect the minority and that's really critical, that's critical to our investment strategy. They weren't independent of things she found, but instead their obligation is to the shareholders themselves and that she found was lacking here.Which I, I hope she doesn't.A lot of shareholder money is being spent to uh to convince him to give him more money.
That doesn't make much sense to me and listen, because someone you think is talented says I want it all.That's why he is uh that's his obligation as CEO Yes, I'm just, I'm gonna walk that, that the company, the board should be thinking about that too.Why if something happens to the president, someone comes in the Tesla goes way beyond Elon Musk.
But again, as we have emphasized, this does not mean this is over, this does not automatically mean he is getting the money.It makes a lot of sense when you analyze the shareholder composition, retail shareholders, active managers, probably many of the passive funds who hold big stakes voted in.
But uh it sounds like uh the Red Dometic happened which he of course pushed for after he, after his pay package was, was denied.Um Tesla shares are obviously higher here.The question is what will the vote totals be?So that'll be interesting to see how, how close it came.The question is, will it be less than 20 eighteen's totals for his, for his pay package at least?I mean, priz you were following the story so closely.
This is where I think Elon Musk is unusual that he brings so much more to the equation than the average CEO who is a tactician.Uh and Tesla shareholders approving Elon Musk, $56 billion pay package moments ago, wanna get some analyst reaction as well from Craig Irwin, senior research analyst at Roth MKM.
Um and is such a um uh charismatic and um important leader, not just not just for Tesla, but I would say for the industry that it's hard to imagine the board, the board controlling him, you know, um he will control this company and uh he will determine the future of Tesla. Is there anybody right now on Tesla's bench, Craig that could take over or is even being groomed to take over at some point for Musk?She gave the first uh speech at the, the uh shareholder meeting and she was a little shaky.
Um But if, if they did something like that and were able to, to show that the, um the energy tax in the drive train was not 100% and if it was 10 or 20% that would actually get me pretty excited.They've done a tremendous job on innovation, you know, everything from their first use of silicon carbide in the drive train to, to, you know, charging to, you know, innovations on motor technology FSD, you know, 2.5 is nothing to laugh at.
But look, you could argue this either way and say that this result, this vote itself could harm shareholders.
Yeah, I mentioned the Robo taxi fleet about how it's gonna be partially owned by Tesla and the other cars will be like your car for instance, and you can rent it out and be like an air BNB like experience, it makes money for you while you're gone.But you know, he was talking about autonomy for, for years now and talk about how it's gonna be fully fledged by 2020 then 0.21 and then things like that.
Be sure to tune into young finance tomorrow morning at 9 a.m. for insight on Tesla, including a conversation with all that noted bull and that our good friend, what Bush analyst, Dan I, oh my gosh, the head shot.NEW YORK — President Joe Biden will nominate Christy Goldsmith Romero to replace Martin Gruenberg as head of the Federal Deposit Insurance Corporation.
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