Elon GRANTED $30 Billion Tesla Stock | This Changes Everything

Whoa. Hey everyone, me Kevin here. Elon

Musk was just awarded 96 million shares

of Tesla stock. Here's everything that

you need to know about this from the

details to the upsides to the downsides

and what my opinion is, which I'll

include towards the end of the video.

Let's just quickly get started. So,

these are 96 million shares worth about

$29 billion. You'll note that's about a

fraction of the $56 billion, about 48%

of a haircut there, of the $56 billion

that Elon Musk has twice gotten approved

by shareholder vote. This is actually

incredible because this $29 billion was

dictated by a two member special

compensation committee, Robin and

Kathleen Thompson. They directed this

and awarded it to Elon Musk, not through

a shareholder vote, but the prior two

votes that were approved by the majority

of shareholders were rejected by a court

in Delaware. We don't need to go into

all the details because we've done it

all before and we're still pending

litigation on the appeals regarding this

and TBD, what the judge is going to do

at this point. But the point is Tesla's

basically telling you, hey, look, we

didn't want to lose Elon Musk, so we're

going to give him a good faith first

step towards staying with the company.

Now, I personally don't actually think

Elon at any point was really planning on

leaving. I think the board kind of has

to run cover here to give a reason as to

why they're issuing this money, as to

why Elon is missionritical to the

company. So that way the same judge or

some other judge doesn't just sort of

spawn in and say, "Hey, you're just

trying to circumvent, you know,

litigation that's still pending." So

anyway, uh the board's official

statement is that we are confident that

this award will incentivize Elon Musk to

remain at Tesla. Again, I personally

don't actually really think he was

planning on leaving, but anyway, the

details of this are that Elon needs to

agree to stay with Tesla for two years

in a senior leadership role. I did think

it was interesting they mentioned senior

leadership role as opposed to CEO

because it sort of leaves the door open

to him potentially over the next two

years not being the CEO, but maybe just

being a senior advisor. So, it is sort

of a pretty open door there. Uh and

obviously it comes after Elon Musk's

political stint here which a lot of

people say took his focus away from the

importance of a model 2 or Tesla Q and

basically divided his attention into

Twitter and politics as sort of new

ventures in place of the model 2 or Q uh

and then focusing the company of Tesla

just on Optimus and FSD leaving that

potential blind spot of manufacturing

sales.

which is somewhat important for a

manufacturing company. Anyway, the Elon

Musk will be required to hold these

shares for 5 years with the exception of

for paying taxes. So, there could be a

little bit of selling pressure given

that uh Elon Musk is going to get these

shares issued at about $23 and some

change. Uh which means he'll probably

have to pay taxes on about $2.24

billion. So, call it somewhere probably

around 1.1ish, maybe even a little bit

more than 50% thanks to the uh Obama

tax. So, you know, Elon Musk is going to

have to pay a chunk of taxes here,

assuming, of course, if they call these

short-term gains or long-term gains. The

point is he'll be paying a chunk of

taxes, probably around a billion

dollars. Uh although sometimes you see

corporations just pay those taxes for

the person as part of the compensation

package. So, who knows? But I don't

think a billion dollars of selling

pressure here or there for taxes is that

big of a deal. If anything, this

probably just provides a lot of

certainty to shareholders, which is what

people are looking for. These are voting

shares, and the board is making it clear

that these are not to be a sort of

double dip. So, if for whatever reason

the prior $56 billion pay package uh

gets approved, then this package or or

the prior one would just be adjusted to

basically net out to make sure that Elon

Musk isn't essentially double dipping

here. Now, when it comes to selling

pressure, remember how critical Elon can

be when it comes to selling pressure. In

2022,

Elon Musk uh sold about $24 billion of

Tesla stock. For hodlers of Tesla, that

was an extremely painful period because

it was basically all year down. And even

when stock started, Nike swoosh

recovering, Tesla didn't really recover

until the summer of 2024,

which is quite a long time of kind of

dragging people through the dirt. And so

obviously there are a lot of people who

were hurt by that. They were hurt by the

transition uh away from hey we're going

to be a company that generates uh you

know 20 million vehicles of production

every single year because we're going to

be the most affordable and safest

vehicle that's on the road which is

frankly what a lot of originally people

got behind. They didn't necessarily get

behind this idea of hey it's all going

to be autonomous. It's going to be hey

let's manufacture 20 million vehicles

have the best nearly autonomous software

that people can just sort of sit and

supervise right essentially supervised

FSD like a lot of a lot of original

investors OG investors are like look

robo taxi that's cool and all but we'll

call that the icing on the cake optimist

that's cool and all we'll call that the

icing on the cake but the core of the

business is manufacture 20 million

vehicles which is what Elon always said

uh become the lowest cost of ownership

vehicle and then advertise that which in

2022 he suggested we Tesla would start

advertising which to some extent they

have started doing which is great. That

said though you know a lot of people are

frustrated because they say hey well you

know should Elon Musk be getting paid

this after his political stint

you know and the shift away from mass

production hurt the company even more

and this is where most people respond

and say well a deal is a deal. the $56

billion deal was transparent enough. It

was voted on twice by shareholders.

Like, how much more transparent could

you be? If anybody was misled in the

2018 shareholder vote, then they had a

chance to vote no in the next

shareholder vote that we had that was

also approved by the majority of

investors. And when that was approved on

that shareholder vote, just really about

3 to four weeks later, Tesla

skyrocketed. uh because one of the

benefits of actually having a

compensation plan set is that now the

stock market gets an element of

certainty that ah okay cool like we are

going to find a way to compensate Elon

we don't have to underwrite this idea of

Elon leaving because he's promising to

stay for a certain period of time which

I think he was going to do anyway uh but

realistically I think there's a lot of

concern over okay well like what is the

compensation going to be it's kind of

like with tariffs to some extent it's

like, "All right, well, can can you just

give us a number so we could just plan

and know what's going to come?"

Obviously, there's still the potential

that, you know, the same judge or, you

know, some regulators step in and say,

"Hey, no, like you guys are trying to

circumvent an active, you know, pending

litigation here, whatever." Uh, that's

possible. It's going to piss a lot of

people off. But, uh, you know, my take

is this is near-term bullish for Tesla.

Uh because the frank reality is at this

point if you don't like Elon Musk,

you're probably not in the stock. If you

think he just got lucky and his luck has

run up and he's run this company a muck

with robots that won't work because you

know Optimus 2 needs a nearly a full

redesign, not on sort of the physical

body of it because of the core

components uh pending now master plan 3.

Those are all things Elon talked about

in last earnings call. uh or that you

know the robo taxi deployment is frankly

just Uber with FSD then you know if you

think those things you probably don't

own the stock. So, I don't think anyone

actually hearing this news that doesn't

say like that owns the stock is thinking

anything other than good, pay the man

what he's worth. Like that's what was

agreed upon twice and it was a long shot

back then when it was agreed upon. Just

because it's a big number now doesn't

mean we should reneg on that deal. And

again, if you don't like what's being

done with robotics or Optimus, well,

that's the same thing and robo taxis

then don't. you probably don't own the

stock and it doesn't matter to you

anyway. Now, if instead you think that

this is a pattern of just success and

failure and ultimately success again, in

other words, the entrepreneurial ups and

downs and we're just maybe in a little

bit of a low point right now. This is

very bullish because after all Tesla is

a company that is brought to you by the

same person who is

digging pretty amazing tunnels via the

Boring Company and interconnecting Las

Vegas and potentially soon Tennessee in

a music loop is giving people life

essentially again via Neurolink and is

landing reusable not only booster

rockets but also spacecraft which is

quite frankly incredible.

uh although those being caught with

little bitty arms little different but

some would say even more impressive

and uh you know ushering in internet to

remotes part remote parts of the entire

world via low earth orbit satellites uh

and ushering in an EV revolution. Yes,

under substantial tax credits, but still

somebody else could have done it. But

no, it was it was Elon who ushered it

in, right? And a charging infrastructure

throughout the entire United States. So,

you know, it's it's really hard to bet

against that sort of reputation. Uh, and

again, like I I would if if you don't

believe this is a good thing, don't own

the stock. Uh, otherwise, it's probably

bullish and it should help push the

stock back through its 318 level that it

just lost. obviously pending uh larger

macro issues. Those would be independent

of what happens here with Tesla.

Obviously, if this jobs report was just

a little blip, then uh you know, we're

back to the races and macro be fine,

then there's nothing to worry about. But

if this jobs report is sort of the

beginning of a recession that usually

occurs on average 6 months after the

yield curve uninverts, which is

basically what happened in December of

2024, then uh you might be thinking, all

right, well, we're we're due for um

potential recessionary time. Obviously,

Tesla at this point could suffer a

little bit. And previously, we've always

thought that Tesla would have some

recession resilience. Uh but that would

have only been in the event of a white

collar recession that never ended up

happening. Now white collar being

replaced by AI and high interest rates

is actually pretty painful for an

automaker. However, if we do hit a

recession, rates will probably be lower

than they ever were before. It's going

to take so much more money printing to

get us out of an AI uh recession. Uh

which those two things coinciding. I'm

not saying AI is causing the recession

and so it will become very affordable to

end up buying a car. So, uh, who knows?

Maybe you just huddle. But, uh,

shortterm, I think bullish for Tesla

here. Uh, it is good on the Tesla

community to get at least some level of

certainty here. Of course, pending some

form of judicial intervention, which is

possible, but frankly, I don't think

Tesla's leadership is going to give up.

They're gonna get Elon to this 20% or

25% voting control. Anyway, my thoughts

on this. Uh, if you like this

perspective, consider subscribing to the

channel, share the video, and we'll see

you in the next one. Goodbye and good

luck.