Barron's Streetwise Tesla’s Monster Musk Incentive. Plus, Deutsche Bank’s Jim Reid on Stocks
Oct 31, 2025
Jim Reid, Global Head of Macro at Deutsche Bank and author on long-term investing, joins to discuss Tesla's ambitious future and Musk’s controversial pay package. They explore the implications of AI on productivity and market valuations, emphasizing the importance of historical returns in guiding current investment strategies. Jim advocates for emerging markets with stronger demographics and discusses gold as an inflation hedge versus equities. A thought-provoking dialogue that blends finance with future technology!
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Tesla Is More A Robot Story Than A Carmaker
- Tesla's market value is driven mostly by speculative future AI businesses like robo-taxis and humanoid robots rather than its car business.
- Jack Hough argues shareholders back Musk because the stock is a story play on those theoretical futures.
Musk Frames Pay As Protection For Robot Plans
- Elon Musk said his pay package is about keeping influence if he builds an "enormous robot army" and fears being ousted later.
- He framed the compensation as protecting Tesla's long-term robot projects rather than personal spending.
Buy Low, Sell High Works Over Long Terms
- Buy markets that are fundamentally cheap and avoid expensive markets to improve long-term returns.
- Jim Reid calls this simple strategy the "secret sauce": buy low, sell high over long horizons.