Tesla Board Chair Robyn Denholm 10/27/25

Summary

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Squawk Pod – Tesla Board Chair Robyn Denholm

Release Date: October 27, 2025
Host: CNBC (Becky Quick, Joe Kernan, Andrew Ross Sorkin)
Featured Guest: Robyn Denholm, Chair of Tesla

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Episode Overview

This episode spotlights a high-stakes interview with Tesla Chair Robyn Denholm, just as Tesla approaches a pivotal shareholder vote on Elon Musk’s unprecedented compensation package. The discussion traverses Tesla’s evolution into artificial intelligence and robotics, the board’s rationale for Musk’s pay plan, the future role of autonomous vehicles and robots, and the balancing act around Musk’s focus. The show also reviews major news headlines, from international trade negotiations to a major media deal and a dramatic jewel heist in Paris.

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Key Topics & Highlights

1. Tesla's Shareholder Vote & Musk’s Pay Package

[16:14 – 22:48]

• Background: Tesla is soliciting shareholder approval for a new performance-based compensation plan that could award Elon Musk up to $1 trillion in stock contingent on major business milestones.

• Board Rationale:

  • The plan incentivizes Musk to stay at Tesla and deliver “unprecedented value for shareholders” over the next decade.
  • "It's a performance plan. If he doesn't perform against the milestones...he actually gets nothing." (Robin Denholm, [18:25])
  • Financial milestones include operational targets and massively increased market capitalization.

• Addressing Criticism:

  • Proxy advisors like ISS and Glass Lewis recommend against the plan; some critics call it too generous.
  • Denholm rebuts: Musk only benefits upon achievement, and shareholders are rewarded earlier than Musk.

• Voting Rights vs. Compensation:

  • Musk’s influence in Tesla is as much about guiding the company’s AI trajectory and protecting its technology as it is about money.
  • “If there was a way of delivering the vote without the actual compensation, we would have done that. But...there was no way of doing that.” (Denholm, [19:58])

Notable Quote:

“Shareholders get their return much earlier than Elon would if he delivers against the plan. And secondly, it really does make sure that the economic value is an incentive for him to stay at the company and continue to deliver.”
– Robin Denholm ([21:11])

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2. Tesla's AI & Robotics Vision

[23:29 – 34:38]

• Product Roadmap & FSD:

  • Discussion on new models (e.g., Roadster) and the shift from traditional carmaking to AI-driven vehicles.
  • Focus is on full self-driving (FSD) tech and a future fleet of robotaxis.

• Robotaxi Rollout:

  • Tesla has set goals to deploy a million robotaxis as part of Musk’s compensation milestones.
  • Progress is both technological and regulatory—cautious rollout city by city.

  “We take a very cautious approach...making sure that there is a safety driver in the passenger seat is one of the ways that we demonstrate that.”
  – Robin Denholm ([28:10])

• The Rise of Optimus:

  • Demonstration of the Optimus humanoid robot, which can fold laundry, serve candy, and even shake hands.
  • “I've been in the lab with Optimus. He can fold laundry. He can wipe the table down really well. He can hand things to you. You can actually shake hands with him.”

  – Robin Denholm ([33:26])

• Tesla’s Future Identity:

  • Denholm envisions Tesla evolving beyond cars to become a robotics and AI powerhouse.
  • “We're redefining what transportation is, but we're also redefining robotics and what AI brings to robotics.”

  – Robin Denholm ([33:57])

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3. Board Governance, Musk’s Focus, and Shareholder Proposals

[24:04 – 27:36]

• Musk’s Multi-Company Commitments:

  • The board trusts that the ambitious milestones in Musk’s compensation plan demand his substantial attention.
  • Also discussed: possibility of Tesla taking a minority stake in Musk’s X AI, if shareholders vote favorably.

• Board Operations:

  • Tesla’s board is highly active, with 58 meetings in the past year.
  • “Having the right board to govern a company that is as unusual as Tesla is really important.”

  – Robin Denholm ([30:29])

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4. Market & Industry Context

[02:02 – 12:53]

• Global News:

  • President Trump’s trade agreements across Asia; a prospective U.S.-China framework; volatility in global markets due to shifting trade talks and rare earth supply chains.
  • “This does not seem like a deal that is done and finalized yet. It seems like it is still a work in progress...But they do seem optimistic.”

  – Andrew Ross Sorkin ([02:04] and [06:18])

• Media & Culture:

  • TV creator Taylor Sheridan’s major move to NBC Universal.

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5. Autonomous Technology: From Cars To Living Rooms

[31:22 – 34:38]

• FSD User Experience:

  • Users can operate Teslas with supervision, but full autonomy awaits regulatory approval.
  • “The technology will be there before the regulatory pieces are there a year from now.”

  – Robin Denholm ([32:46])

• Optimus’ Capabilities:

  • Notably, Optimus’ dexterity (not just walking, but hand tasks).
  • “The tactile nature of his hand is actually really very good.”

  – Robin Denholm ([33:36])

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6. AI Bubble? Denholm’s Take

[35:08 – 36:09]

• Denholm believes AI’s opportunity is as transformative as electricity or the automobile.
• “The technology of AI is truly transformative and it will continue to be over the next decade or more...We're changing transportation with AI, and we're changing the way households will work and how workplaces will work with robotics.”

  – Robin Denholm ([35:24])

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Memorable Quotes

• On Incentivizing Musk:

  • “If he doesn't perform against the milestones...he gets nothing.” (Denholm, [18:25])
  • “If there was a way of delivering the vote without the actual compensation, we would have done that.” (Denholm, [19:58])

• On Tesla’s Identity:

  • “If you're going to be a car company, there are plenty of car companies out there. But...the opportunity for Tesla in the future, given this AI focus...is significant.” (Denholm, [21:47])

• On Robot Dexterity:

  • “I've been in the lab with Optimus. He can fold laundry. He can wipe the table down really well. He can hand things to you. You can actually shake hands with him.” (Denholm, [33:26])

• On AI’s Future:

  • “The technology of AI is truly transformative...it will continue to be over the next decade or more.” (Denholm, [35:24])

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Notable Timestamps

• [16:14] — Start of interview with Robyn Denholm on Musk’s compensation
• [17:29] — Denholm on why the plan is necessary
• [21:11] — Denholm: “Shareholders get their return much earlier...”
• [23:29] — Discussion on the shift to AI/robotics
• [28:10] — Safety and rollout of robotaxis
• [33:26] — Optimus robot’s dexterity described
• [35:24] — Denholm’s vision for AI
• [36:15] — Denholm urges: “Please get out there and vote.”

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Additional Segments

• International news: U.S.-Asia trade deals and the Chinese negotiations ([02:02]–[10:32])
• Entertainment industry: Taylor Sheridan moves to NBC Universal ([11:04])
• Crime news: French authorities arrest suspects in Louvre jewel heist ([38:38])

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Episode Tone & Language

The tone is brisk, analytical, and occasionally lighthearted (especially in the robot demonstration and pop culture sections), matching the usual CNBC style. Technical terms like EBITDA and market cap are discussed explicitly, while complex corporate scenarios (shareholder votes, compensation plans) are broken down for general understanding.

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In Summary

Tesla is at a key crossroads: not just a car company, but poised to become a trailblazer in AI and robotics. Robyn Denholm defends the board’s proposed $1 trillion compensation plan for Elon Musk as necessary incentive to keep him engaged through Tesla’s most transformative era yet. Shareholders are urged to use their voice as Tesla races towards an audacious future—one where cars, robots, and perhaps even laundry-folding Optimuses, take center stage.

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Transcript

[Schwab Announcer]

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Level moment from ATT Business. Say you've sent out a gigantic shipment of pillows and they need to be there in time for International Sleep day. You've got AT and T5G so you're fully confident, but the vendor isn't responding and International Sleep Day is tomorrow. Luckily, AT&T 5G lets you deal with any issues with ease. So the pillows will get delivered and everyone can sleep soundly, especially you. AT&T 5G requires a compatible plan and device. Coverage not available everywhere. Learn [e-mail] 5G Network.

[Andrew Ross Sorkin]

Bring in show music please.

[Squawk Pod Host]

Hi, I'm CNBC producer Katie Kramer. Today on Squawk Pod, Tesla chair Robin Denholm. Shareholders in the EV company and shareholder proxies are gearing up for a vote next week. The big item on the docket, Elon Musk's trillion dollar compensation.

[Robin Denholm]

Shareholders get their return much earlier than Elon would if he delivers against the. And secondly, it really does make sure that the economic value is an incentive for him to stay at the company and continue to deliver.

[Squawk Pod Host]

And special sweet delivery from a robot.

[Robin Denholm]

I've been in the lab with Optimus. He can fold laundry. He can wipe the table down really well. He can hand things to you. You can actually shake hands with him.

[Squawk Pod Host]

The French jewel thieves nabbed on their way out of the country.

[Joe Kernan]

It's like Ocean's Eleven, except for they got caught pretty quickly.

[Squawk Pod Host]

Plus the president in Asia reworking a trade deal with China. Our Eamon Javers reports this does not.

[Andrew Ross Sorkin]

Seem like a deal that is done and finalized yet. It seems like it is still a work in progress. But they do seem optimistic.

[Squawk Pod Host]

And a big deal for the creator of the hit Yellowstone universe to jump from Paramount to NBC.

[Joe Kernan]

Spin offs to Yellowstone are my favorites.

[Guest Commentator]

Those were good.

[Becky Quick]

Lioness. Too lioness.

[Squawk Pod Host]

It's Monday, October 27th. Squawk Pod begins right now.

[Becky Quick]

Stand Becky.

[Robin Denholm]

Bye.

[Andrew Ross Sorkin]

In three, two, one.

[Becky Quick]

Cuba, please.

[Joe Kernan]

Good morning everybody. Welcome to Squawk Box right here on cnbc. We're live from the NASDAQ market site. In times Square. I'm Becky Quick, along with Joe Kernan and Andrew Ross Sorkin. And here we go. It is a Monday morning.

[Becky Quick]

I say it truly. Everything you touch turns to gold and you can be very proud of it. Other parts of the world are not like this.

[Guest Commentator]

They're very special people.

[Becky Quick]

And it's a very, very special place. Thank you very much.

[Guest Commentator]

It's a great honor to be with you.

[Becky Quick]

Thank you. President Trump arriving in Tokyo about 2 hours ago this after signing a trade and minerals agreement with Malaysia and Cambodia and frameworks now for a trade deal with Thailand and Vietnam as well. CNBC's Amy Jarvis is live for us this morning in Washington with the latest on where this is all headed ahead of hopefully a meeting with President Xi soon.

[Andrew Ross Sorkin]

Yeah, that's where we might end up at the end of the week, Andrew. President Trump arrived in Japan this morning after a whirlwind weekend in Malaysia, where he reached trade and mineral deals, as you say, with Malaysia and Cambodia and set up those frameworks for trade agreements with Thailand and Vietnam. Now in Tokyo, the president began with a courtesy visit with the emperor and is later going to have a meeting with the new Japanese prime minister, Sana Takiichi, who is the first woman to hold that role in Japanese history. Now on Air Force One, President Trump spoke extensively with reporters, but he said he didn't want to share details of what officials are calling a framework economic agreement between the United States and China that could be signed by President Trump and Chinese President Xi Jinping later this week.

[Robin Denholm]

I don't want to tell you what.

[Schwab Announcer]

The understanding is because what we understood.

[Robin Denholm]

Yesterday or two days ago or even.

[Guest Commentator]

Today is not going to be necessarily.

[Robin Denholm]

What it's going to be in two days.

[Becky Quick]

We're going to have a great talk. I have a lot of respect for President Xi.

[Schwab Announcer]

I like him a lot.

[Becky Quick]

He likes me a lot. I believe and respects me, and I.

[Andrew Ross Sorkin]

Think he respects our country, indicating there that the trade talks are somewhat of a moving target. Now speaking to NBC's Kristen Welker.

[Robin Denholm]

Thank you.

[Andrew Ross Sorkin]

Treasury Secretary Scott Besant yesterday sounded an optimistic note on those Chinese negotiations, arguing that the president's tariff threat has helped to get a deal.

[Becky Quick]

President Trump a great deal of negotiating leverage with the threat of the 100% tariffs on November 1st. And I believe we've reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese. I think we will be able to discuss them helping us get this terrible fentanyl crisis under control. I think we are going to be able to discuss substantial soybean and ag purchases for our American farmers.

[Andrew Ross Sorkin]

I think we are going to be.

[Becky Quick]

Able to discuss more balanced trade.

[Andrew Ross Sorkin]

Now, in addition to his meetings with political leaders in Japan today, President Trump is also expected to attend a dinner with business leaders there. The White House has not provided us a list of the attendees, but it is expected, guys, to be a who's who of the Asian business elite. Back over to you.

[Becky Quick]

So question for you. When they talk about a framework, I mean, a lot of things that Secretary Bessen was talking about was we've set up the parameters to have a conversation about these issues as opposed to we've agreed on these issues. In fact, when Kristen Welker was sort of pushing him on the issue of soybeans, for example, and just how, how big a piece of our market they are as purchasers, or at least historically have been. What that, what that ultimately looks like. How optimistic do you think the market and investors and just the public should be about where these talks really go?

[Andrew Ross Sorkin]

Yeah, I mean, that's the big question as we head into the rest of the week. You know, this trip is certainly underway. There clearly were meetings throughout the weekend between Besson and his Chinese counterparts. And that's why I played that clip of President Trump on Air Force One. Andrew, you know, he's saying he doesn't want to talk about the details of what's in this framework because his understanding, you know, yesterday might not be the same as today, might not be the same as tomorrow. That to me indicates, you know, very much a moving target in terms of these negotiations. This does not seem like a deal that is done and finalized yet. It seems like it is still a work in progress. But they do seem optimistic that they will get there by the end of the week when the president is scheduled to sit down with Xi Jinping. Nothing can really be finalized, finalized until those two leaders meet in a room. But the goal here is to set up as much as you can for success by the end of the week. The president was asked on Air Force One about a TikTok deal. Remember, he's announced that deal previously. The president was asked about it on Air Force One. He said maybe we'll get a TikTok deal as well. So a lot of pieces here still need to fall into place between now and the end of the week, I think.

[Joe Kernan]

Hey, Eamonn, the question on rare earths, I think, is a big one, too. This idea that this is going to be not a decided situation, but maybe a respite. Maybe we get to look at this and think that they're going to think about this for about a year and leave things at status quo until then.

[Andrew Ross Sorkin]

Yeah. The expectation is that the Chinese would, you know, lift their export controls in some form or fashion as part of this deal. You know, what form and fashion that ends up taking, you know, that's sort of up in the air. And at the same time the president's trying to do those negotiations with the Chinese, he's also very quickly trying to secure rare earth supplies elsewhere, including in the United States, he said. And the key there is the processing bottleneck. You know, can they process outside of China in an economic way? And so the president's been taking steps, you know, aggressively around the world to try to, you know, reshore or at least differently offshore the rarer supplies from someplace else other than China. In the short term, though, they do hope to get that export control situation cleared up by the end of this week. But again, that's one of those moving parts that seems to still be moving right now.

[Becky Quick]

Okay, Amy Javors. Thank you, sir.

[Guest Commentator]

President Trump says he's imposing an additional 10% tariff on imports from Canada in retaliation for running a TV ad featuring former President Ronald Reagan criticizing tariffs. The president blasted Ontario's provincial government for waiting until after the first two games of the World Series to pause the Reagan ad. He called it dirty play, but said, I can play even dirtier than they can. Ontario Premier Doug Ford said Friday he would pause the ad beginning today, but allow it to play over the weekend so it could air during the first two World Series games, which it did. Trump halted trade talks with Canada last week, arguing that the ad misrepresents President Reagan's position on trade by editing out some comments in which he defended imposing tariffs, select tariffs on Japan, and emphasized the importance of maintaining the presidential authority to do so.

[Joe Kernan]

Mark Carney, the federal head of Canada, has tried to distance himself somewhat from the Ontario government's move. I think the one thing that it does do, though, is highlight the volatility in all of these trade talks. And while we feel great about where we stand with China right now, as it looks like they're heading into this meeting with a lot of things worked out with both President Trump and President Xi. All of these things are volatile. We thought we had the rare earth situation worked out before. It's just a moving target and a. You know, at any point, if they are unhappy with the way things are unfolding, they can change their mind. But, Joe, you were right. Even. Even when it didn't look like things were Great. We were 1 or 2% from all time highs. So it doesn't put an extreme amount of pressure on the markets. It does increase volatility. And right now we're at 15.15 on the Vix, which is not super high. But you see those little spikes along the way.

[Guest Commentator]

And the President's probably his new favorite baseball player is Yoshinobu Yamamoto, I would say because, you know, I'm not having grown up in Cincinnati, it's tough to love the Dodgers. But this guy, second complete game in a row in the postseason, hasn't been done in a long time and just blanked. Basically blanked Toronto to even the series at 1:1. And now I'm kind of. I guess we're Ichbenign Blue, love the blue, love the Dodgers.

[Joe Kernan]

You're just trying to not talk about what happened with Cincinnati and the Bengals.

[Guest Commentator]

That was something. A landmark media deal with TV and film producer Taylor Sheridan. He signed an agreement to join NBC Universal when his contract with Paramount expires. Multiple reports are indicating this. He's known for TV hits including Yellowstone and its spin offs of Yellowstone, Tulsa King and Landman and others. Mayor of Kingstowne. He's got a formula that. I don't know. It works.

[Becky Quick]

I like.

[Guest Commentator]

I know. I like everything that. I'm not sure exactly what that means. I don't know.

[Joe Kernan]

Spin offs to Yellowstone are my favorite favorites.

[Guest Commentator]

Those were good precursors. Although this lioness, you remember that he did that too.

[AT&T Announcer]

I didn't.

[Guest Commentator]

Yeah, he did that too. Yep. A lot of violence. He is a lot of. A lot of violence.

[Robin Denholm]

Actually.

[Joe Kernan]

I like Tulsa King too.

[Guest Commentator]

Tulsa King is good. Merrick Kingstown was. Was awesome. Jeremy Renner.

[Joe Kernan]

I only watched the first half of the first season.

[Guest Commentator]

Says here Sons of Anarch. Yet was that really him too? Completely. Which I also liked. Although I like Charlie Hunnam so much and he just plays the biggest freak in the man.

[Joe Kernan]

That is a win for the home team or our home team for the next couple of months.

[Guest Commentator]

What's that?

[Becky Quick]

Apparently he's going to do the show. Apparently he's going to do all of these shows that are on paramount still till 2029 at least.

[Joe Kernan]

Yeah, he's. He's under contract till 20.

[Becky Quick]

Right, right.

[Guest Commentator]

But the deal with NB, he's young. He's 55. Yeah, the deal. And he's in Yellowstone. He riding. Doing all the crazy stuff on the horse. His deal with NBC Universal includes creating TV content for both NBC and Peacock and creating films for Universal Pictures. Of course, NBC Universal is owned by Comcast, which is in the process of spinning off some of its assets, including this network.

[Joe Kernan]

I was laughing about it, but getting rid of us and gaining him.

[Guest Commentator]

Yeah, exactly.

[Joe Kernan]

Fair trade for them.

[Andrew Ross Sorkin]

Tease will be next.

[Squawk Pod Host]

Coming up on Squawk podcast, we have.

[Becky Quick]

Tesla's Cyber Cab sitting just outside the NASDAQ this morning, along with an optimus robot that is handing out candy.

[Squawk Pod Host]

Tesla chair Robin Denholm bringing the whole show to Times Square as she joins us for a special interview. The company is preparing for a shareholder vote on Elon Musk's unprecedented pay package. She says he's worth it.

[Robin Denholm]

We're changing transportation with AI and we're changing the way households will work and how workplaces will work with robotics.

[Schwab Announcer]

Trading at Schwab is powered by Ameritrade, giving you even more specialized support than ever before, like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy. Gut check. Need assistance? No problem. Get 24. 7 professional answers and live help and access support by phone, email and in platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn [e-mail] trading and now a next.

[AT&T Announcer]

Level moment from ATT Business. Say you've sent out a gigantic shipment of pillows and they need to be there in time for International Sleep day. You've got AT and T5G so you're fully confident, but the vendor isn't responding. And International Sleep Day is tomorrow. Luckily, AT&T 5G lets you deal with any issues with ease, so the pillows will get delivered and everyone can sleep soundly, especially you. AT&T 5G requires a compatible plan and device. Coverage not available everywhere. Learn [e-mail] 5G Network.

[Guest Commentator]

This holiday, give.

[Becky Quick]

The gift that says, let's cancel plans and just lounge.

[Squawk Pod Host]

Meundies has dropped their new holiday collection, and it's made for maximum cozy.

[Becky Quick]

We're talking soft as snow, ultramodal fabric.

[Squawk Pod Host]

Festive prints, and loungewear so comfy your.

[Robin Denholm]

Couch might get jealous.

[Squawk Pod Host]

Onesies, hoodies, joggers, even delightfully quirky holiday designs.

[Becky Quick]

You're welcome. Knock out all your holiday gifting needs.

[Squawk Pod Host]

With deals up to 60% [e-mail] SXM.

[Becky Quick]

Enter promo code SXM that's meundies.com SXM Code SXM.

[Squawk Pod Host]

Welcome back to Squawkpod from CNBC. This morning, right outside our TV set in New York, a Tesla Cyber Cab and a Tesla Humanoid Robot Optimus. It had arms, legs, everything. Attracted tourists and others in Times Square.

[Guest Commentator]

Let's get to Becky. She has ventured outside into Times Square with the Tesla cybercatch. Yeah, we have this free candy.

[Joe Kernan]

Optimus robot out here. He's given free candy out. And you know, I'm shocked he's not mobbed out here in Times Square. Hi, how are you, dude? Good to see you, man. Oh, high five, air five. Oh, good.

[Becky Quick]

Boom.

[Robin Denholm]

Boom.

[Joe Kernan]

I'm not allowed to touch, I'm told, but could I have some kids candy?

[Squawk Pod Host]

Q said robot handing our Becky quick a package of sweets from a nearby bowl.

[Joe Kernan]

Thank you, man. Thank you very much. By the way, these are gummies, I'm told there's no THC in them.

[Squawk Pod Host]

Both technologies, those big cybertrucks and the robots are key to Tesla's future. Now let's get back to Andrew this morning.

[Becky Quick]

We've got a big interview for you. Tesla's annual shareholder meeting is next week where investors in the company will vote on a new pay package for CEO Elon Musk could grant him nearly $1 trillion more in stock. And joining us first right now on CNBC is Tesla's board chair, Robin Denholm. And we're thrilled of her and the entire Tesla operation outside there with the Optimus robot, the robotaxis and everything else. Robin, it's good to see you. Thanks for joining us.

[Robin Denholm]

Great to see you as well, Andrew.

[Becky Quick]

So help us understand. We just saw what you put out this morning, effectively saying that shareholders need to vote in favor of this compensation plan to compensate Elon Musk and to make sure that he remains the CEO of the company. Make the argument for us, in part because I should note that some of firms like ISS and Glass, Lewis, these firms have actually told shareholders the opposite. They've said, vote against this plan. There have been others that have said that effectively Elon Musk is holding the shareholders hostage. You've, you've been with your board sitting, discussing this, and you believe that this is in the best interests of shareholders. Why?

[Robin Denholm]

Well, Tesla's in a transformative stage at this point in time where we're leaning in very heavily to the AI space in terms of both the vehicles, in terms of fsd, but also in terms of Optimus and, and the robots, as you can see here in New York today. And so for us, it's, we sat back as a board and actually determined that this is the right time to lean into that transformation and for Elon to lead that transformation. And we then formed a special committee to actually Determine what the right incentive program was to have him motivated to deliver unprecedented value for shareholders over this next decade.

[Becky Quick]

And so what do you tell shareholders who say this just seems like too much money. He's already incentivized. He, he owns a big chunk of the company already. I mean, that's, that would be the pushback, right?

[Robin Denholm]

Well, it's a performance plan. If he doesn't perform against the milestones, both in terms of the market cap and the operational milestones, he actually gets nothing. He doesn't get any salary or any equity unless he actually performs and achieves the milestones that are in the plan that is the basis of this performance plan.

[Becky Quick]

Look, you know, I've argued this is, this is the greatest pay for performance plan that exists, as was the previous one, which was struck down. I want you to listen to this. This was Elon Musk addressing the upcoming vote during a call last week on the quarterly results call where he discusses some of this. But I just don't feel comfortable building a robot army here and not and then, you know, being ousted because of some asinine recommendations from ISS and Glass Lewis who have no frigging clue. I mean those guys are corporate terrorists. And the problem. Yeah, so let me like explain. Like the core problem here is that so many of the index funds, the passive funds, vote along the lines of whatever Glass Lewis and ISS recommend. Now they've made many terrible recommendations. So Robert, how much of this is about incentivizing Elon? Because it sounds like to me, more than anything, he believes that he actually worries about AI in the future and wants to have greater control of the company. And how, I'm curious, the board thinks about that.

[Robin Denholm]

Yes, he's been very consistent in that view in terms of having enough influence over the vote of Tesla in the future so that bad things can't happen with the AI. So it's less about compensation and more about the voting influence in terms of this. And that was very clear as we were negotiating from a special committee perspective in terms of this performance package. And if there was a way of delivering the vote without the actual compensation, we would have done that. But from our perspective there was no way of doing that.

[Joe Kernan]

Can you do that with voting shares that have like a super majority vote?

[Robin Denholm]

You can, but you can only put them in place before you ipo. And so that's why some of the other technology companies have those in place, place. But we, we had many experts advising us and having a look at that exact question, could we do that? And we ultimately couldn't so. But what we have done in the plan is we've bifurcated the voting rights versus the economic value. He doesn't get those economic values until at least year seven and a half, even if he delivers them in the first five years. And so that's one of the features of this plan shareholders. Firstly, shareholders get their return much earlier than Elon would if he delivers against the plan. And secondly, it really does make sure that the, the economic value is an incentive for him to stay at the company and continue to deliver for quite some time in the future.

[Joe Kernan]

Hey, Robin, right now you've got a market cap at Tesla north of $1.4 trillion. What would Tesla be worth without Elon Musk, do you think?

[Robin Denholm]

Yeah, well, that's the whole question, which is why we're asking shareholders to vote. We're, we're at this important inflection point. You know, there is nothing wrong with being just a car company. There are plenty of car companies out there. We, we think we deliver great cars out into the marketplace. But the opportunity for Tesla in the future, given this AI focus and attention and the unique capabilities that we have as an organization and that Elon brings to us, really does mean that the opportunity for the company ahead of us is, is significant. And so, and that's how this performance plan has been put together.

[Joe Kernan]

Do you think it's worth half what.

[Robin Denholm]

It'S worth right now?

[Joe Kernan]

Without him?

[Robin Denholm]

It's very hard to tell, but, but there is definitely a premium there because of the unique capability that, that he brings to the company and the opportunity that we have as a company ahead of us.

[Becky Quick]

One of the questions.

[Guest Commentator]

I guess I'm looking for some new models. I mean, if you're going to. That you don't need a sexy new model for me, do you? For the first one was so great. The Model S, obviously, the style and everything about it.

[Robin Denholm]

Still a great car.

[Guest Commentator]

It is. Is there any way I can hope for some really cool. I don't know, is a roadster, a new one coming?

[Robin Denholm]

It's on the, it's on the roadmap.

[Guest Commentator]

It's on the roadmap. Do you have any. Can you describe it to me? Is it bigger than a brand?

[Robin Denholm]

I'm not going to announce, but if.

[Guest Commentator]

You'Re doing all this, maybe you don't need to do what. But we've always done, you know, a new Mustang or you don't need the old way we think of American cars.

[Robin Denholm]

Yeah, I mean, Elon talked about that last week on the earnings.

[Guest Commentator]

He did, yeah.

[Robin Denholm]

You know, leaning into FSD and actually AI in the vehicles has actually been the focus over this last period of time. The, the, the integration of that with a really purpose built vehicle for autonomy is actually really important, which is why you see the cybercap.

[Guest Commentator]

Yeah.

[Robin Denholm]

And again, the vehicles that we have on the road today, great vehicles using full self driving as well.

[Becky Quick]

Hey, Robyn, you know, one of the questions that shareholders seem to ask is how can you guarantee that you're going to be able to capture and get all of Elon's attention? Obviously, you know, he's a renaissance man of sorts in that he has various interests and lots of different businesses, including SpaceX being the other biggest. And how much you think that you have to incentivize him economically to keep his eye on Tesla or if it should be contractual. How have you thought about that distinction?

[Robin Denholm]

Yeah, I mean, I think the plan speaks for itself on that front. He, he can't deliver against the plan without the focus and attention. The goals that we have in the plan around market cap to get to eight and a half trillion dollars more than many companies out there combined today, is actually a significant set of goals that he has to achieve and he has to actually focus on Tesla to achieve those. And so, so and delivering the operational milestones both in terms of products, but also in terms of a $400 billion EBITDA number. That is an enormous task for anyone. And for Elon, he is motivated by doing things that other people can't do or other companies can't do. And that was very much in the forefront of how we constructed the plan.

[Becky Quick]

Robin, one of the other things you put on the table, which I actually imagine is partially to incentivize Elon as well, is the possibility of taking a stake in X AI, which of course is his other business connected to X, of course I shouldn't say of course, but given the way ISS and Glass Lewis and others have been pressing, you know, they're saying this shouldn't, this shouldn't happen, that this would be a conflict. How does the board think about that? Let's say that, let's say the shareholders approve the idea of considering that stake. When you think about, to the extent there is a conflict, how do you think about it?

[Robin Denholm]

Yeah, well, firstly it is a shareholder proposal. And what that means is that the company didn't put the proposal on. The proxy was actually submitted by shareholders. We received a number of them and actually this was the most common proposal around Xi to take a minority stake or at least vote on that. We as A board want to hear shareholders points of view. From our perspective, shareholder primacy is a very key principle that we've had on all of our topics, this one included. Now, that does not mean that as a board, we would just do what the shareholder vote comes in at. We would then assess if it's a for vote, to take a minority equity position. We would as a board examine that and look at the, the benefits for shareholders to do that. And we would do it in the same way that we do other related party type of transactions. We have a very robust related party transaction process at the company. The audit committee oversees that and that those transactions are disclosed. Now, obviously, taking an equity stake in is is different to other transactions, but we would take the same fiduciary responsibilities very seriously if that were to happen. But again, it's a shareholder proposal. We will see what the vote comes in at and we'll take that into consideration as the board reviews that proposal.

[Becky Quick]

Hey, Robin, I don't know if you saw this, but I wanted to ask you about it. Adam Jonas, the analyst out with a note this morning. He says, I'm calling it autonomous Cars are solved. When I say solved, do I mean six or seven nines to the right of the decimal? No. Perfection? Never. But enough to pull the safety driver at scale in major metros. He says if someone pulls the safety driver with a camera only robotaxi in Austin, that would be a very big deal. And from our discussions with Tesla, it appears the only thing preventing Tesla from pulling the driver is its own abundance of caution. What do you think of that?

[Robin Denholm]

Well, we are being extremely cautious. Elon talked about it last week on the earnings call as well. We safety is our number one priority for the vehicles per se, and it has been from the beginning. And introducing full self driving into the robotaxis and also into everybody's vehicles today means that we take a very cautious approach in terms of delivering that. And the robo taxis are no different. Making sure that there is a safety driver in the passenger seat is one of the ways that we demonstrate that in terms of being super cautious.

[Becky Quick]

But how close do you feel you are to taking the driver out and also just rolling this out to even more cities? Here you are sitting in New York City right now. I'd love to sit in a Robotaxi there. We haven't got them yet.

[Robin Denholm]

Yeah, obviously there's also regulatory hurdles that you have to make in any city and you have to comply with all of the local regulations. And so the team is very focused on city by city making sure that we're meeting all of the regulatory standards and that we actually then bring the vehicles to that city. And so as you can see from the performance package, there's a lot of robo taxis that we envisage at some point over the next decade in terms of having a million robo taxis out there as one of the goals that Elon needs to hit.

[Joe Kernan]

Hey, Robin, you are such an interesting person and you're in such a unique position I think as chair of Tesla. To be working with Elon Musk, to have the pressures that have come from the Delaware court decision, to have the, to be dealing with shareholders on all of these things. What's the hardest part of your job?

[Robin Denholm]

Well, I think all of the directors at Tesla are very hard working. I couldn't, I couldn't ask for a better board actually. And everybody pitches in. We work with the management team, we, we're on calls all the time. You can see from the proxy, we had 58 meetings over this last year.

[Joe Kernan]

You have a lot of stuff to handle.

[Robin Denholm]

What other company has that? And so from my perspective, having the right board to govern a company that is as unusual as Tesla is really important, which is why we're asking shareholders to vote for the three directors that are up for re election this year.

[Becky Quick]

You're open.

[Joe Kernan]

What's different now that Elon has left the government and come back?

[Robin Denholm]

Well, obviously the outside perspective of him spending more time at Tesla, that perception obviously is diminished a little bit in terms of that he is very much front and center and has been for quite some time. And it is enabling us to continue to focus on the business of Tesla and for the employees to, to feel that as well. Each and every day.

[Guest Commentator]

It's great in New Jersey, so not here. And I don't, I don't feel safe driving here a lot. So in New Jersey there's a lot of traffic. When can I buy a Tesla? Where someone gets in the Tesla at my house, puts him where he or she wants to go, it takes him or her there and drops him off.

[Robin Denholm]

When can I, when can I do that without supervision?

[Guest Commentator]

Without supervision?

[Robin Denholm]

So today you can do it with supervision. I can even do it in Sydney.

[Guest Commentator]

So, so someone has to just watch what's going on, but it will take him in park and everything. Let's say a child or someone who doesn't want, by themselves or someone who's. Someone who doesn't want to have the risk of hurting someone or hurting someone wants to be able to have his car, his own car, but doesn't want to drive it and to get to where he's going. Totally self sufficient.

[Robin Denholm]

Yeah, well, full self driving is available.

[Guest Commentator]

So we're ready now.

[Robin Denholm]

Yeah, but it is supervised and that is again under our abundance of caution, making sure that that's there. But the interventions that people are having are fewer and fewer. Any.

[Joe Kernan]

But like even as a soccer mom or something, if you want to send your kids to practice without you, when's that coming?

[Robin Denholm]

At some point in the future. But that will also be dependent on regulatory. Are you able to send the kids.

[Guest Commentator]

Without a year, 2, 3, 5?

[Robin Denholm]

I will not predict the regulatory pieces. The technology will be there before the regulatory pieces are there a year from now.

[Becky Quick]

Hey, Robin.

[Guest Commentator]

Yes.

[Robin Denholm]

Yes, Andrew, I was going to ask.

[Becky Quick]

I know, I know we're all focused on cars, but I'm curious, if we're all sitting together 10 years from now, will we think of Tesla as a car company or will it be a robot company? You know, just even seeing Becky getting those gummies, being handed the gummies by, it's pretty cool. Optimus is. Is that what it is? And, and how, how close are we to true dexterity? Because, you know, people always say that robots can do a lot, but they still can't fold laundry, for example.

[Robin Denholm]

Oh, well, Optimus can fold laundry.

[Joe Kernan]

I've actually pretty gentle grasp with the gummies that he could have squished and once or twice he dropped them like he did just now, and he went back and picked them up carefully.

[Robin Denholm]

He was pretty gentle. Exactly right. So I've been in the lab with Optimus. He can fold laundry. He can wipe the table down really well. He can hand things to. You can actually shake hands with him. The tactile nature of his hand is actually really very good.

[Joe Kernan]

I wasn't supposed to touch it, but I did.

[Robin Denholm]

Yeah, you can't. I mean, yeah. Again, from a cautious perspective. We continue to make sure that people are cautious around him. But, you know, he also can dance. You've seen some videos. He mobile and very dexterous. He's walking around the offices in Palo Alto all the time. So. So I'm actually quite excited. But I think to answer your question, we're redefining what trans transportation is, but we're also redefining robotics and, and what AI brings to robotics and how versatile the robots will be in the future as well.

[Becky Quick]

Andrew, in terms of, by the way, Elon spending most of his time, it sounds like these days, on the robots themselves. I mean, that's, that's where his focus.

[Robin Denholm]

Is he's spending time on many different areas. On the earnings call, he even talked about the chips that he's been working on and the team are working on. Obviously the, the software. We do have a few other vehicles coming out. So he spends time on that. He's spending time on everything across the board.

[Becky Quick]

And then finally, because I got to ask you to weigh on it, we ask everybody, you know, everyone talks about an AI bubble, whether there's sort of, you know, indiscriminate spending, almost too much spending in this space, and that it's going to catch up to us at some point. Where do you land on that topic?

[Robin Denholm]

Yeah, my, my view is that the technology of AI is truly transformative and it will continue to be over the next decade or more in terms of what it's done. I was, I was thinking about this yesterday. You know, if you think about 100 years ago, you know, where most houses didn't have electricity or had cars in the driveways, that, to me, is what's happening at this point. It's. We're changing transportation with, with AI, and we're changing the way households will work and how workplaces will work with. With robotics. Robotics. And I think that's incredibly exciting, and Tesla aims to be at the forefront of that.

[Becky Quick]

Robyn, I want to thank you for joining us and for bringing Optimus with you, no less.

[Robin Denholm]

Thank you. And I'd like to leave our shareholders with. Please get out there and vote. This vote is really important across the board in terms of not just the performance package, but also the directors and the other, the other proposals that we have out there. Thank you.

[Joe Kernan]

How many Tesla shareholders traditionally will vote in an annual meeting, and how many do you anticipate this year?

[Robin Denholm]

Well, last year we had a record turnout, and we hope to have the same again this year. It is a very important vote.

[Joe Kernan]

What was the percentage that turned out last year?

[Robin Denholm]

It was quite high. I can't remember exactly, but one of.

[Joe Kernan]

The things normally 75 or 80%.

[Robin Denholm]

Well, don't forget, we have a very unusual shareholder base in that we have over 30% that are retail shareholders. Shareholders. And so for me, it's actually just making sure that shareholders use their voice and vote. And it's really important to us that they do. Thank you.

[Squawk Pod Host]

Next on squawk pod arrests made in Paris after the museum heist. That was almost the crime of the century.

[Becky Quick]

I don't know, is it unfair that I was sort of rooting for them? I don't. I want to say I was rooting for them. But I was sort of just marveling at how this all happened.

[Schwab Announcer]

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[Squawk Pod Host]

This is.

[Becky Quick]

Squawk Pod up and Becky Q.

[Joe Kernan]

You're watching Squawk Box right here on cnbc. I'm Becky Quick, along with Joe Kernan and Andrew Ross Sorkin.

[Becky Quick]

French police have now made their first arrest in connection to the heist at the Louvre Museum. Prosecutors providing few details so far of the men who were detained, but said that one was intercepted before he could board a flight from Charles de Gaulle Airport. And in Paris, police can hold the men in custody apparently for up to 96 hours before deciding whether to bring preliminary charges against them or to release them. Last week, of course, four thieves used a truck mounted lift to break into an upper gallery of that museum and steal eight pieces of jewelry valued at more than $100 million. And it was like, I don't know, Ocean's Eleven or something. I mean, it's kind, I don't know, is it unfair that I was sort of rooting that I don't, I don't want to say I was rooting for them, but I was sort of just marveling at how this happened, guys.

[Joe Kernan]

Yeah, I mean, it was, it's like Ocean's Eleven, except for they got caught pretty quickly. There was a statement that came out from the French police somewhere saying that they regretted that someone had too quickly announced the news. And it's news that they had caught two of them because they haven't recovered the stolen.

[Guest Commentator]

And if we're talking about they'd have to be released in 96 hours if they're not charged. And that raises the possibility, I guess they're arranging for bail. They're asking whether you can use diamonds for. For, for bail. Yeah.

[Becky Quick]

Or.

[Guest Commentator]

Yeah. It's just. How about we leave this?

[Joe Kernan]

Does that work?

[Becky Quick]

Yes.

[Schwab Announcer]

Brooch.

[Becky Quick]

Brooch.

[Guest Commentator]

But I mean, if you think about it, they probably are going to. The only way to fence it, I would think would be to destroy the. The way that it.

[Joe Kernan]

My guess is there's some black market that we don't know about.

[Guest Commentator]

Even somebody.

[Becky Quick]

Cookie.

[Joe Kernan]

Who'd be willing to pay and put it in.

[Becky Quick]

I've got a guy. I've got a guy.

[Guest Commentator]

No, I think, I think they're going to sell the. You know, unfortunately, I think it means that they would try to fence everything individually. Like big, beautiful diamonds. Right? Diamonds, rubies, whatever it is. I don't know.

[Joe Kernan]

There were some.

[Becky Quick]

We will see.

[Guest Commentator]

But I guess people, I mean, art, you can't do that with. And people steal art and they, they have it in like a private room and they show it to the.

[Robin Denholm]

It's like Gollum, my precious. That is.

[Squawk Pod Host]

Squawk Pod for today, this last Monday in October. Thanks for starting your week with us. Squawk Box is hosted by Joe Kernan, Becky Quick and Andrew Ross Sorkin. Tune in weekday mornings on CNBC at 6 Eastern to get the smartest takes and analysis from our TV show right into your ears. Please follow Squawk Pond wherever you like to get your podcast. Have a great Monday. We'll meet you right back here tomorrow.

[Andrew Ross Sorkin]

We are clear. Thanks, guys.

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