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Elon Musk is an 'irreplaceable' CEO: Analyst

Tesla (TSLA) shareholders have voted in favor of CEO Elon Musk, approving his controversial $56 billion pay package. Joining Asking for a Trend to discuss the implications of this shareholder vote is Craig Irwin, Senior Research Analyst at ROTH MKM.

Irwin acknowledges Musk's transformative impact on Tesla and the electric vehicle industry, describing him as an "alchemist" who has orchestrated the company's remarkable growth and driven the success of the entire EV sector. He deems Musk an "irreplaceable" CEO, underscoring his pivotal role in Tesla's trajectory.

While Irwin maintains a bearish outlook on Tesla's stock, he cannot deny the profound impact Musk has "had on the world". "Clearly, Musk controls the company," Irwin states. "The board does not control the company; the board is there for governance and is doing its best. But Musk is such a big personality and such a charismatic, important leader, not just for Tesla but for the industry. It's hard to imagine the board controlling him."

For more expert insight and the latest market action, click here to watch this full episode.

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This post was written by Angel Smith

Video transcript

And Tesla shareholders approving Elon Musk, $56 billion pay package.

Moments ago, we wanna get some analyst reaction as well from Craig Irwin, senior research analyst at broth MKM.

It's good to see you Craig.

So as you look at this as a financial analyst, how do you model an event like this and the effect that it, that it might have?

Le le let's frame this out right?

When, when Tesla, um uh when the shareholders actually originally approved this uh pay package, um in 18 Tesla was a $50 billion company today.

It's a $570 billion company.

Um Elon Musk has really been an alchemist.

Um He's uh really driven the success of the EV industry and uh you know, in many respects, he's a pioneer.

Um and he's, you know, I would say irreplaceable.

Um So I'm not surprised the shareholders uh approve the package again.

It makes sense.

The last thing they want to do is chase him away and tell him go, go work on something else.

We don't want you with Tesla.

Everybody, everybody likes him.

I may be a big bear on the stock, but I think he's a highly charismatic guy.

Um And, and I can really appreciate what he's done for the world.

Craig.

Let me ask you this.

It's hypothetical which I, I know financial analysts always love when I go there.

But I, I'm just interested if you took out your kind of crystal ball.

What if the package hadn't been approved?

Craig?

What do you think the reaction would have been in the stock?

Oh man, we we could have seen drop 20 30%.

Um You know, I've always said, hey, Elon Musk is the most important person that put at Tesla.

If you put him in one of his rockets and send him to Mars, he's still the most important person at Tesla.

But you know, there would have been a reaction, I mean, the headlines would have been a big deal.

Um Yeah, he's put up his shares for Twitter uh for the Twitter purchase.

He's highly leveraged across his different companies.

Um But man, I cannot imagine him having quite the same passion um if the shareholders first approve it and then don't approve it.

Um when there's a wrinkle in the uh the overall process in uh in Delaware.

So, you know, not surprised to move into Texas.

Um you know, I can't, can't imagine Delaware being very popular in Musca in, in most zip code.

But uh you know, the right thing happened today at the shareholder meeting and you know, they're laying out their vision for the future.

I disagree on the vision a little bit.

Um I'm a bear but, uh you know, he's getting what he wanted at the shareholder meeting.

Well, and Craig, you know, as you say, you're a bear the company, despite his triumph today, the company has some underlying sort of secular issues, some of which have to do with Tesla, some of which just have to do with the market more broadly.

does, does the board have even less oversight of Musk after the vote today?

And does that mean that he is less likely to address those issues that perhaps need addressing?

Clearly, Musk controls the company, right?

The board does not control the company.

The board is there for governance.

Um And it's doing its best, but Musk is such a big personality 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.

Um You know, now, I just, I think the board, if they were doing their job a little bit better, they would uh maybe rein in some of these very aggressive statements that are being made about uh autonomy and, you know, the um the last earnings call and he, he started to tap on this a little bit um, before I cut over, but the, uh, the whole idea of a sentient humanoid robot, um, on the market before the end of 2025 that conflicts with what I'm hearing from experts.

Right.

You know, uh, the person that put the first humanoid robot, um, on the, uh, space stations, actually someone that I know from, uh, working with him in another company.

He's telling me what Tesla has a state of the art for 2014.

So extremely aggressive claims, you know, FSD rate 2.5.

But if we're gonna get to 4.0 it's gonna consume as much electricity as the drive train does today.

That's kind of a nonstarter.

So aggressive claims are not new hyperbole is not new to Elon Musk.

Um He's got car company problems he needs to solve, you know, really demand, that's why they're starting to do advertising.

Um And then, uh he needs to take more cost out of his vehicles.

He's been a leader there in cutting cost, but that's painful for investors that really want to see earnings, you know, EPS and EBITDA.

So it's a tough set up.

Um, you know, and the board, you know, they, they have a role, they have a very important role but, but Musk is clearly the leader of the company.