Earn Your Leisure Podcast

Episode: Elon Musk’s $1 Trillion Tesla Deal: Is He Really Worth It?

Hosts: Rashad Bilal & Troy Millings

Date: October 28, 2025

Overview

In this episode, Rashad Bilal and Troy Millings dissect Elon Musk's unprecedented proposal of a $1 trillion compensation package tied to Tesla’s performance. The conversation explores the feasibility and implications of such a massive payout, Musk’s influence over Tesla’s fortunes, the risks of his potential departure, and compares historical cases of visionary founders. The discussion provides both investor and entrepreneurial perspectives on leadership, value creation, and the unique place Musk holds in modern business.

Key Discussion Points and Insights

1. Context of the $1 Trillion Compensation Plan

• Elon Musk’s Demands:
  • Musk has pushed for a pay package entitling him to $1 trillion if Tesla's market cap hits $8.5 trillion—well above its current ~$1 trillion.
  • Musk implied that failure to approve the deal could lead him to walk away from Tesla.
  • The proposal comes amid recent letters to investors and the Tesla board.
  • This payment is contingent on extremely high benchmarks.
    • “If Tesla’s valuation gets to $8.5 trillion, then his payout, then he’ll earn $1 trillion over the course of that time.” (D, 02:53)
  • The compensation would equate to around 14% of the company’s total value at that point.

2. Investor Perspectives: Is It Worth It?

• Unprecedented Nature of the Deal:
  • Hosts express surprise and question whether any CEO is worth $1 trillion, regardless of company growth.
    • “It’s unprecedented that somebody would ask for a one trillion dollar payment compensation package.” (B, 04:12)
  • Some investors ask: Is the risk of Musk leaving worth insuring for such a sum?
  • For current Tesla shareholders, voting on the deal may be on the table.

3. The Centrality of Musk to Tesla’s Value

• Visionary Leadership:

  • Musk is widely considered a “once in a lifetime talent.”
  • Comparisons are drawn to other corporate legends (Steve Jobs, Warren Buffett) and succession issues.
    • “Without Elon Musk, Tesla essentially has no value. Especially if he takes his talents to focus on Starlink primarily, which is the real gem of a company.” (C, 05:06)
  • With all major Tesla projects and the next 10 years’ roadmaps tied to Musk alone, the company is extremely exposed should he exit.

• Board Dynamics and Threats:

  • Musk also wants 25% voting control to stay fully engaged, essentially making this a take-it-or-leave-it offer.
    • “He wants 25% voting control to stay fully committed. That’s kind of like the threat.” (B, 06:57)

4. Tesla's Valuation: Fundamentals vs. Sentiment

• Stock Performance versus Business Reality:

  • Recent earnings calls have focused less on car sales, more on future robotics and AI.
    • “If you listen to the earnings call that they just had, they talked nothing about cars. No, there wasn’t even a mention of cars…All autonomous, all robotics.” (B, 07:10)
  • Tesla's share price is seen as moving more on Musk’s statements and presence than on sales or fundamentals.
    • “It’s just moving on the sentiment of the CEO. If that CEO removes themselves from that equation, you’re in for a windfall.” (B, 08:20)

• Company Financials:

  • Tesla’s recent annual revenue: $95.62 billion.
  • Margins: 17% gross, 5.57% net—good, but not impervious without visionary leadership.

5. Comparisons to Other Business Icons

• Steve Jobs’ Forced Exit:

  • “We had a once in…another once in a lifetime talent be voted out by his board by the name of Steve Jobs in 1985.” (B, 06:46)
  • Reflected on how losing the founder destabilized Apple, until Jobs’ return.
  • “Didn’t work. This did not work.” (C, 06:53)

• Warren Buffett’s Departure:

  • Berkshire Hathaway’s downgrade mentioned as a cautionary tale for what happens when founder-leaders leave without clear succession.

• Can the Program Survive the Loss of Its Leader?

  • Hosts debate whether companies (Apple, Microsoft) can sustain outsized value after losing legendary founders, and if Tesla fits that mold.
  • “Nobody’s bigger than the program.” (D, 10:04)
  • Argument that Musk is so deeply intertwined with Tesla’s identity, his departure could mean the end of its distinctiveness.

6. Entrepreneurial Insight: Building with Personal Value

• Creating “Founder Value”:
  • “You want to be so valuable that if you do leave…that the value is with you. If you’re building the business.” (C, 12:15)
  • Comparisons to franchise athletes—if the main player leaves, the game changes entirely.

Notable Quotes & Memorable Moments

• On Musk’s Centrality:

  • “Without Elon Musk, Tesla essentially has no value. Especially if he takes his talents to focus on Starlink primarily.” (C, 05:06)
  • “If you listen to the earnings call that they just had, they talked nothing about cars...All autonomous, all robotics.” (B, 07:10)

• On Corporate Governance:

  • “He wants 25% voting control to stay fully committed. That’s kind of like the threat.” (B, 06:57)
  • “If that CEO removes themselves from that equation, you’re in for a windfall.” (B, 08:20)

• On Programs vs. Founders:

  • “Nobody’s bigger than the program but you can’t negotiate with terrorists.” (D, 09:55)
  • “He is the program, though.” (C, 09:59)
  • “If Tesla’s stock is only tied to one person, then it’s not a good company.” (D, 10:10)

• On Apple After Jobs and Other Companies:

  • “Apple…has had an all-time high almost 10 years after Steve Jobs died.” (D, 10:25)
  • “Microsoft in the equation is still running years after Bill Gates.” (D, 10:33)

Timestamps for Important Segments

• [02:00] — Elon Musk’s compensation plan explained; benchmarks and implications for investors.
• [04:36] — Negotiation tactics and Musk’s leverage discussed.
• [06:46] — Historical look at boards ousting visionary founders (Steve Jobs).
• [07:10] — Tesla’s pivot from cars to AI and robotics on earnings calls.
• [08:20] — Host discussion on how Tesla’s valuation is sentiment-driven.
• [09:55] — ‘Nobody’s bigger than the program’ debate.
• [10:53] — What does Tesla represent: product value vs. leader-driven hype?
• [12:15] — Entrepreneurial take on building “founder value” into a business.

Conclusion

This episode explores the massive stakes behind Elon Musk’s demand for a $1 trillion payout, and what his ongoing involvement—or departure—means for Tesla. Rashad, Troy, and their guest challenge listeners to consider how much a singular visionary contributes to a company’s real value and whether boards or investors should risk everything on one man. Throughout, candid talk and memorable moments illuminate the intersection of business power moves, legacy, and the high-wire act of corporate leadership in the age of icons.