Musk's $1 trillion pay, a price cut for obesity drugs, Target's in-store woes and more in Morning Squawk

In a significant move for Tesla, shareholders have given the green light to CEO Elon Musk's staggering pay plan, which could amount to nearly $1 trillion. Approximately 75% of voters backed the proposal, despite some resistance from leading proxy advisors. This compensation package will allow Musk to receive 12 tranches of shares contingent on the company's performance over the next decade, and it will also enhance his control over Tesla, increasing his ownership stake from 13% to an impressive 25%. Among the ambitious goals set forth is the delivery of 1 million Optimus humanoid robots, which Musk claims will revolutionize society by eradicating poverty and will be more influential than smartphones. Currently, these robots are not available for purchase, and Musk did not provide a timeline for their release. In the stock market, concerns about inflated valuations in the artificial intelligence sector have continued to trigger declines in shares of major companies like Nvidia, Advanced Micro Devices, and Microsoft, contributing to a challenging week for investors. In health news, former President Donald Trump announced a partnership with drug manufacturers Eli Lilly and Novo Nordisk aimed at significantly reducing the prices of their obesity medications. The new agreements will enable Medicare to cover GLP-1 drugs for obesity starting in mid-2026, with monthly costs potentially dropping to between $50 and $350, depending on dosage and insurance coverage. This is a stark contrast to the current list prices, which can soar to $1,350 monthly before insurance. Amidst these developments, David Sacks, an advisor on AI and cryptocurrency to Trump, stated that there will be no federal bailout for the AI industry. This comes after OpenAI's CFO, Sarah Friar, suggested the need for a government safety net to support the company’s investments. However, she later clarified her remarks, emphasizing that true American technological strength hinges on collaboration between the private sector and government. Meanwhile, OpenAI CEO Sam Altman expressed optimism about the company's financial outlook, projecting over $20 billion in annual revenue this year and aiming for hundreds of billions by 2030. Despite recent infrastructure deals exceeding $1.4 trillion, uncertainty remains among investors regarding how these commitments will be financed. On the retail front, Target is facing backlash from shoppers dissatisfied with their in-store experience, citing issues like disorganized aisles and long wait times. In response, the retailer is revamping its online order fulfillment strategy, opting to limit the number of stores that will handle online purchases. This change aims to allow staff to concentrate more on improving customer service in stores, marking a shift from Target's original model of using stores as distribution centers for e-commerce. These stories highlight the dynamic changes in business and healthcare landscapes, providing crucial insights for investors as they navigate the market.