Squawk Pod — Elon Musk’s Trillion Dollar Pay Plan & Obesity Drug Pricing

Date: November 7, 2025
Host(s): Joe Kernen & Andrew Ross Sorkin
Notable Guests: Dr. Mehmet Oz (Administrator, Centers for Medicare and Medicaid); Walter Isaacson (Author and Musk Biographer)

Episode Overview

This episode of Squawk Pod delves into two headline topics shaping economic and societal discussions:

1. Tesla’s historic approval of Elon Musk’s $1 Trillion pay package, exploring both the economic logic and philosophical implications, capped with insights from Musk biographer Walter Isaacson.
2. The Trump administration’s negotiated plan to slash prices on popular obesity drugs, described in detail by Dr. Mehmet Oz, including the policy rationale, expected outcomes, and the ongoing challenge of U.S. healthcare system reform.

Throughout, the hosts debate the broader themes of wealth inequality, American innovation, the role of government in healthcare and industry, and the tension between economic opportunity and social fairness.

Key Discussion Points & Insights

1. Tesla Shareholders Approve Elon Musk’s $1 Trillion Pay Plan

(Main segment starts ~05:15)

• Background: Tesla shareholders approve a new pay package for CEO Elon Musk that could reach a staggering $1 Trillion if exacting corporate milestones are met over the coming decade. The deal, supported by 75% of shareholders, consists of 12 tranches tied to company performance, including a market cap target north of $8 Trillion and non-vehicle products like the Optimus robot.

• Panel Banter & Market Context:

  • Sorkin and Kernan marvel at the unprecedented figures and discuss U.S. market trends, the psychology of compensation, and political critique of wealth concentration.
  • Quote, Joe Kernan (06:51):
    "Of course they got to get the market cap to over $8 trillion for him to get... It's early in the morning and bees and treaties. Can't believe we even talk in Tees and Tees like this."

• Societal Reactions – Wealth, Fairness & Policy:

  • Kernan defends Musk's contributions and entrepreneurial value, contrasting it with “populism” and policies critical of billionaires.
    Quote (07:16):
    "The idea that billionaires are not a positive force... this is not a zero sum game. He didn't steal the trillion dollars from other people... This is creating wealth."
  • Sorkin highlights public concern over fairness and tax policy:
    Quote (09:17):
    "You've got to...make it seem—and not just seem, feel—fairer. So we often talk about the tax code. It seems to me that there's so much low-hanging fruit."
  • The hosts debate how the U.S. could structure taxes or policy to maintain upward mobility while easing social tensions.

2. U.S. Policy on Obesity Drug Pricing – With Dr. Mehmet Oz

(Segment starts ~20:40, interview ~21:48)

• Deal Highlights:

  • The Trump White House secures agreements with Eli Lilly and Novo Nordisk to cut prices on obesity drugs.
  • Out-of-pocket costs for consumers drop from $1,200–$1,300/month to ~$250/month. For Medicare patients: $50 copay; on Medicaid, the medications are free.
  • Medicare will begin covering these drugs for obesity in 2026.
  • Notable Quote, Dr. Oz (01:59 / 22:07):
    "Most Americans can't afford these drugs... we are reducing the cost on average to about $250 a month. And if you're on Medicare... you're going to pay $50 copay. Government will pick up the rest."

• Broader Policy Implications:

  • Dr. Oz frames this deal as a new template to align U.S. drug prices with those in other developed countries, pushing back on the pharma industry’s argument that price controls would kill innovation:
    Quote (26:13):
    "That specific narrative is false... The argument that we're making and they're agreeing with is that it's inherently unfair for us to pay three times more."
  • He adds this benefits public health and state budgets, given obesity’s large share of U.S. healthcare costs.

• Healthcare System Challenges:

  • Dr. Oz discusses the complexity and politics of the U.S. healthcare system, noting the need to “bend the cost curve” by cutting waste, deploying better technology and data, and incentivizing quality care.
  • He estimates over 10% of Centers for Medicare & Medicaid Services' $1.75 trillion budget is lost to fraud, waste, and abuse, and promises actions to improve efficiency.
  • Quote (32:26):
    "It is absolutely possible to reduce costs. I'll give you two concrete examples: over 10%...is fraud, waste and abuse... And the second big issue... is by truly empowering beneficiaries with information."

• GLP-1 Drug Innovation & Impact:

  • Dr. Oz foreshadows next-gen obesity medications (pills coming by March), predicts 135 million pounds lost across the population, and discusses emerging metabolic and behavioral benefits.
  • Quote (34:38):
    "We're going to have pills, pill versions of these on the market by March... We estimate that the American people will lose about 135 million pounds over the next year..."

• Viral Moment:

  • Dr. Oz recounts rendering medical aid during the White House announcement when an attendee fainted, and President Trump personally called the attendee’s spouse.
  • Quote (35:40):
    "The most important thing if someone's about to faint is catch them... We got him down, put a little chocolate in his mouth, got an IV in, and he got excellent medical care..."

3. Warren Buffett’s AI Warning

(Segment ~16:12)

• Joe Kernan highlights Buffett's concern over deepfake videos impersonating him, manipulating public perception and potentially markets.
• Quote (16:12):
  "Mr. Buffett is concerned that these types of fraudulent videos are becoming a spreading virus..."

4. Walter Isaacson on Musk’s Moonshot Milestone

(Interview segment ~39:00)

• Historical Parallels & Populist Backlash:

  • Isaacson likens the current era to 1929 in both speculative energy and the rise of populism fueled by inequality.
  • Quote (39:52 / 40:11):
    "Right now you have greater, greater excesses of wealth and inequalities of wealth...and it leads to a populist backlash."

• Musk’s Chances and Corporate Control:

  • Recalls 2018’s skepticism and Musk’s previous performance, noting that despite “moonshot” goals (1 million robots, 1 million driverless cars, sixfold share price rise), past precedent should give observers pause before doubting Musk again.
  • Notable Quote (40:30 / 40:49):
    "I remember you in 2018... Everybody you talked to said it was ridiculous. Well, he did it."
  • Argues Musk’s demand for equity is not just about wealth, but control—especially over Tesla’s AI and robotics integration:
    Quote (41:47):
    "Musk feels he needs the stock not only for the money... he wants control of a company that's going to be taking AI and put it into the real world."

• Tesla and X AI Integration Debate:

  • Isaacson predicts continued internal tension over whether Musk’s independent AI efforts (X AI) should fold into Tesla, seeing it as a likely eventuality.

Notable Quotes & Timestamps

• Joe Kernan on Wealth Creation:
  "This is not a zero sum game. He didn't steal the trillion dollars from other people." (07:16)
• Andrew Ross Sorkin on Fairness & Policy:
  "You've got to...make it seem—and not just seem, feel—fairer." (09:17)
• Dr. Mehmet Oz on Drug Pricing:
  "We're making it easier for companies to say yes. They're bringing their prices in line with what other countries are paying." (18:34)
• Walter Isaacson on Musk’s Track Record:
  "I remember you in 2018...Every source said it was ridiculous. Well, he did it." (40:30)
• Walter Isaacson on Control:
  "He wants control of a company that's going to be taking AI and put it into the real world..." (41:47)

Timestamps for Important Segments

• 01:12 — Main episode theme tease: Musk’s pay plan, obesity drug pricing
• 05:15 — Deep dive: Tesla’s shareholder approval, Musk’s pay structure
• 07:16 — Kernan on wealth creation; society’s view on billionaires
• 09:17 — Sorkin on tax policy, economic fairness
• 20:40 — Obesity drug policy overview begins; Dr. Oz intro
• 21:48 — Dr. Oz interview on drug pricing, public health policy
• 26:13 — Dr. Oz refutes pharma’s narrative on innovation and price controls
• 32:26 — Dr. Oz on fixing healthcare costs (fraud, digital tools)
• 34:38 — Dr. Oz on upcoming pill versions, impact on weight loss
• 39:00 — Interview: Walter Isaacson on the Musk pay package, historical context
• 40:49 — Isaacson on past predictions, Musk’s ability to deliver

Conclusion

This episode offers an unvarnished look at the scale and stakes of modern American business and governance. The electric debate ranges from Musk’s astronomical incentives (“moonshot goals”) and their role in driving—versus destabilizing—growth, to America's latest innovation in pharmaceutical pricing. Both conversations circle back to the same crossroads: how can a nation balance prosperity and innovation with fairness and access, amid rising technological and social complexity?

For deeper insights:

• Dr. Oz on reforming U.S. drug pricing (21:48–28:23)
• Walter Isaacson on Musk’s ambitions and the future of Tesla/AI (39:00–44:05)

Episode tone: Energetic, combative, occasionally humorous, but ultimately grounded in serious questions about the direction of the American economy and society.