Elon Musk's pay package comes at the same time an outperforming hedge fund's investment chief says Tesla is going bankrupt.

Falling demand and a pressing need for big capital raises are two core reasons this hedgie doesn't like Tesla.

"I have never seen anything so absurd in my career," the hedge fund manager said.

Just a few days ago, shareholders of Tesla approved an almost comical pay package for their cult leader CEO Elon Musk that could put $50 BILLION in his pocket over the next decade.

Let's put this figure in perspective: At $5 billion a year, Musk would make more than every CEO in the S&P 500. COMBINED.

In other words, if you add up the salaries of all the CEOs of the 500 largest companies in America, it would still be less than the $5 billion a year that Mr. Musk stands to earn.

That's pretty astounding given that Tesla's own 2017 fourth-quarter financial report (page 24) states that Musk "does not devote his full time and attention to Tesla."

Or more important, that under Musk's leadership, Tesla's chronic financial incontinence has racked up more than $4.97 billion in operating losses for its shareholders.

Or that the company has been under SEC investigation (without bothering to disclose this fact to shareholders).

Yet they saw fit to reward him with the largest CEO pay package in history.

This is precisely the type of behavior that is seen only during periods of extreme irrationality when financial markets are at their peak — and poised for a serious correction.

I'll close with this brief letter quoting John Thompson, a Chicago-based value investor who is chief investment officer of Vilas Capital Management.

Thompson is one of the few hedge fund managers who have consistently outperformed the market, and his fund is betting big against Tesla. What follows are some passages about Tesla from Thompson's recent investor updates: