CNBC Television
Irwin: Tesla is Elon Musk, and without him, it wouldn’t be Tesla
11/6/2025, 12:10:08 PM
Economic Summary
- The proxy vote on Elon Musk’s pay package is a near-term catalyst likely to move Tesla (TSLA) stock as retail investor reactions and broker voting decisions influence flows.
- Retail investor sentiment is strongly pro-Musk — Charles Schwab reversed an indicated vote after client backlash — showing broker votes and client flows can sway governance outcomes.
- The guest argues Musk is central to Tesla’s value, so retention through compensation reduces the catastrophic risk of talent exodus and long-term value loss for TSLA.
- Although ISS opposed the package, the speaker views that opposition as unlikely to overcome broad retail and Wall Street support, meaning governance controversy may be headline risk rather than structural damage.
Bullish
- Strong retail and Wall Street support for Musk should stabilize Tesla (TSLA) near term.
- Musk's track record across EVs, energy, AI, and other ventures justifies large incentives to retain him.
- Pay aligns interests and helps ensure engineers and talent remain with Tesla.
Bearish
- Large pay package creates governance concerns and potential shareholder backlash.
- If Elon Musk were to leave, Tesla (TSLA) could lose its identity and key engineering talent.
- Proxy-advisor opposition (ISS) and controversy could pressure the stock in the near term.
Bullish tickers
TSLA
Bearish tickers
TSLA
TSLA
Bullish
Broad retail and institutional support, plus Musk's value-creation across multiple industries, make paying him justified to retain leadership and drive TSLA's future growth.
Bearish
A massive pay package and governance controversy could trigger shareholder backlash and pressure TSLA; Musk departure risk remains severe.
People mentioned
Elon MuskRon BaronGreg