Elon Musk's $56 Billion Tesla Pay Packages Got Shut Down By A Delaware Judge, Causing $TSLA To Drop In After-Hours Trading. Elon Is Now Considering Moving His Headquarters From Delaware To Texas!! His Other Company Neuralink Had Their First Ever Human Trials This Week Too! In This Article We Break It All Down, And Give Our Thoughts On $TSLA And Neuralink. We Also Have A $TSLA Trade Idea At The Bottom!
The first ever human patient had a Neuralink brain-chip installed on Sunday. “The first human received an implant from Neuralink yesterday and is recovering well. Initial results show promising neuron spike detection.” Musk said on X. He also revealed that "the first Neuralink product is called Telepathy" and enables control of your phone or computer just by thinking. According to Musk, "initial users will be those who have lost the use of their limbs."
He also said that "initial results show promising neuron spike detection." Spikes are activity made by neurons, which is described by the National Institute of Health as cells that use chemical and electrical signals to send information around the body and to the brain.
The PRIME Study, which stands for Precise Robotic Implantation and Monitoring Evaluation, is a first-in-human clinical trial for Neuralink's brain-computer interface (BCI) technology. It is a crucial step in the development of Neuralink's technology and could pave the way for future clinical trials and commercialization.
The primary goal of the PRIME Study is to evaluate the safety and efficacy of Neuralink's BCI system. This includes assessing the safety of the implant and surgical robot. This will involve monitoring participants for any adverse effects of the implant or surgery. During these trials they will also be evaluating how well the BCI system allows participants to control external devices using their thoughts. Initially, the focus will be on computer cursor or keyboard control, but the study may also explore other applications in the future.
The PRIME Study is currently enrolling participants with tetraplegia, a form of paralysis affecting all four limbs. Participants must be between the ages of 22 and 80 and meet other specific criteria. If you are eligible and interested in participating in the PRIME Study, you can expect the following:
Participants in the PRIME Study will have the opportunity to be at the forefront of brain-computer interface technology. They may also experience some personal benefits, such as regaining some control over their movements or environment and participating in research that could help others with paralysis. As with any medical procedure, there are some risks associated with participating in the PRIME Study. These include risks of surgery such as infection or bleeding, the possibility of the implant not working as intended, and unforeseen side effects of the implant or surgery
The company was founded in 2016, and seeks to eventually allow users to connect their neuralink device with a smartphone, keyboard, or mouse using an app. The implant operation will cost around $5,000, and general anesthesia is not necessary, neither is an overnight hospital stay as the surgery lasts around an hour. A little scar will remain after the surgery. The hardware itself will cost $200-$300 making getting a Neuralink an investment of around $5.3K. Neuralink is hoping their devices end up like laser eye surgery, referring to how up until recently the majority of people rejected laser eye surgery due to costs and public reception. Nowadays laser eye surgery is very common. Like laser eye surger, Nerualink hopes to become more cost-effective as economies of scale take effect.
Neuralink's current and future capabilities are quite fascinating, spanning from immediate applications to ambitious long-term goals. Here's a breakdown:
Planned and Potential Capabilities:
Before being approved for human trials, Neuralink surgically installed implants into the skulls of pigs and monkeys during their animal trials period. In April 2021 they made headlines when it was revealed they had successfully taught a male macaque monkey named Pager to play the classic arcade video game Pong using the Neuralink implant. They did this by having the Neuralink chip feed information from the monkey's neurons into a decoder, which predicted Pager's intended hand movements so that the output from the decoder can be used to move the cursor with his mind instead of using a joystick.
The Physicians Committee for Responsible Medicine accused Neuralink of animal cruelty stating they “removed pieces of the skulls of rhesus macaque monkeys and inserted electrodes into the animals’ brains.” There was a lawsuit that also claimed the monkeys were not given adequate veterinary care and that they "killed monkeys by destroying portions of their brains".
Neuralink stated there was "one surgical complication involving the use of the FDA-approved product (BioGlue), and the monkey was euthanized" and that “two animals were euthanized at planned end dates to gather important histological data, and six animals were euthanized at the medical advice of the veterinary staff at UC Davis.” They also stated that they are "absolutely committed to working with animals in the most humane and ethical way possible".
Musk wrote on X that "no monkey has died as a result of a Neuralink implant. To minimize risk to healthy monkeys, we chose terminal monkeys." However there are rumors that neither of those statements were true due to reports from anonymous former staff members. One report stated, "Animal 15 began to lose coordination and staff observed that she would shake uncontrollably when she saw lab workers. Her condition deteriorated for months until the staff finally euthanized her. A necropsy report indicates that she had bleeding in her brain and that the Neuralink implants left parts of her cerebral cortex 'focally tattered'". With another one claiming, "We had these monkeys for a year or so before any surgery was performed" and calling Musk's comments about the terminal monkeys as "ridiculous".
Neuralink promises to revolutionize healthcare, communication, and even our understanding of consciousness. But like any powerful technology, it comes with a hefty dose of potential risks and ethical concerns. Let's weigh the pros and cons of Neuralink to get a clearer picture of its potential impact:
Neuralink's potential is undeniable, but its development and implementation require careful consideration of the ethical and societal implications. Open dialogue, responsible development, and robust regulations are crucial to ensure that Neuralink's benefits outweigh its risks. Only then can this technology truly live up to its promise of improving lives and advancing our understanding of the human brain. Remember, the future of Neuralink is still being written. We, as a society, have the power to shape its narrative and ensure that it benefits all of humanity. Let's choose wisely.
Nerualink was valued at around $5 billion last June, and reported an annual income of $17 million back in October. Elon Musk is the largest investor in Neuralink with a $100 million investment. Craft Ventures, DFJ Growth, Dreamers VC, Future Ventures, and Valor Equity Partners are also Neuralink investors. From an investor's perspective, Neuralink presents a fascinating mix of high-potential rewards and equally high-stakes risks:
Neuralink is not a public company, like Boxabl which we spoke about recently, so common investors will have to wait until the IPO to invest in the company. Elon Musk also currently doesn't have any plans for a Neuralink IPO. Elon Musk's other company Space X is now valued at around $150 billion, and he still hasn't mentioned any plans to take it public. One would assume Elon would take Space X public before Nerualink, and rumor has it SpaceX might IPO their satellite internet business Starlink, but before 2025. However there are ways for investors to try to gain exposure to Neuralink:
Elon Musk faced a significant setback as a Delaware judge, Chancellor Kathaleen St. J. McCormick, invalidated the controversial pay package that had contributed to Musk's billionaire status. This ruling shed light on what the judge deemed as a deeply flawed process, where Musk effectively played a role in determining his own compensation, valued at around $50 billion.
The compensation plan, initially devised in 2018 by Tesla's board, promised Musk substantial rewards only if the company achieved exceptional results and its stock price soared. However, a group of Tesla shareholders contested the package, which ultimately granted Musk the right to acquire approximately 304 million Tesla shares at a predetermined price if certain financial goals were met. The total worth of the package, split into 12 separate grants, amounted to about $51.1 billion at Tesla's closing share price today.
Chancellor McCormick's ruling declared the compensation plan void, emphasizing its excessive nature. This decision has broader implications, potentially serving as a warning to other companies that grant their top executives exorbitant pay packages. While Musk achieved all 12 goals, the judge mandated that excess pay be returned, leading to a potential reduction in Musk's wealth and his stake in Tesla, currently standing at about 13 percent.
The lawsuit, culminating in a trial in November 2022, gained significance after Musk's controversial acquisition of Twitter in October of the same year. Critics argue that Tesla lacks sufficient checks on Musk's behavior, with a board comprised of individuals closely associated with him. The decision also raises questions about Musk's recent demand for a larger stake in Tesla, which the board has not publicly addressed.
Chancellor McCormick highlighted that Musk's ownership stake in Tesla, amounting to 22 percent before the compensation package (it is around 13% without it), already provided significant incentives for transformative growth. The ruling, subject to appeal, underscores the need for transparency and fairness in executive compensation, with potential repercussions for companies beyond Tesla. Investors and the broader financial community will keenly watch how Tesla navigates this setback and addresses Musk's demands for an increased stake in the company. Tesla's stock reacted by dropping 2.5% in after hours. Elon also suggested that he might move Tesla’s state of incorporation from Delaware to Texas, home of its physical headquarters.
I asked out exclusive in-house analysts what they thought of Elon Musk's companies from an investor's perspective:
"Taking a look at $TSLA today, if we pop a fib retracement on the chart, we hit exactly the 50% level then saw a hard rejection, If the bulls want to continue reversing this from last weeks lows, we need to get above $200 quickly otherwise it's like to come back into the mid to low $180s again soon! Indicators are showing weakness and bearish sentiment, at least short term.
Looking at some fundamental indicators: P/E ratio is currently at 44 and forward P/E ratio is currently at 43. These simple indicators imply $TSLA could be overpriced at current levels." -Mad Maverick
"A bullish outlook for Neuralink could be based on several key factors. Firstly, positive technological advancements, such as successful human trials or enhancements in the capabilities of brain-machine interfaces, would likely drive investor confidence. Additionally, swift regulatory approvals for Neuralink's products and technologies are crucial for their progress, and a bullish scenario might involve favorable regulatory decisions facilitating the company's plans.
Moreover, market expansion plays a significant role in the stock's potential growth. If Neuralink successfully identifies and taps into new markets or applications for its innovative technology, it could experience substantial financial gains. Strategic partnerships and collaborations with established companies in related industries would also be viewed positively, as they could enhance Neuralink's credibility and open new avenues for growth.
Financial performance is another key aspect that investors would consider. Meeting or exceeding financial expectations, achieving profitability, or securing significant funding would contribute to a bullish sentiment surrounding Neuralink.
Lastly, public perception and adoption of Neuralink's technology are critical factors. A positive public outlook, coupled with an increasing interest or adoption of brain-machine interfaces, would likely strengthen Neuralink's position in the market and contribute to a bullish scenario for the stock." -SwingingBull
"I know a lot of people are fearful of new tech, especially things which go into the human body, but we've been using implants, prosthetics, and even neurological interfaces for a long time. It's just part of evolving technology and I'm looking forward to it (cautiously, of course) and the kinds of impacts it can have on our society. This company may pave the way, but that will open the avenue to other, better companies and inventors and that's our advantage as a species." -PookiesRevenge
"Decent hold of that 181.95 level, mentioned in November of last year. For this to get back to being somewhat bullish in the bigger picture we need to get above 217.65 with a weekly candle close. If not, then my expectation is that eventually the 181.95 is going to fall out, and that we make our way back down to the 152.37 level." -BTC_JAY
Option 1: Bullish
Entry: Weekly candle close above $217.65
Targets: $241.82, $267+
Stop Loss: $206.24
Option 2: Bearish
Entry: Strong break below $181.95 (safer entry would be waiting for retest of $181.95 as resistance)
Targets: $161, $152.37
Stop Loss: $170.03
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