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Well, I wasn't talking about the veracity of the statement. Just stating trump is too dumb to know what nato is, other than what he can gather that it does for him personally (which is nothing, hence why "it's dead" to him). That said, the comment was also made nearly 4 years ago now, so I doubt he had all that in mind when he made the claim.
He loves to exaggerate for attention and he knows the NATO coalition has been struggling for the last decade. Telling the individual members that they all need to fend for themselves (by purchasing into American-made weapons industries) because the organization is "dead" is more about being used-car-salesmen shady than foreign-policy-stupid.
There's a running joke - one that Obama alluded to as he was leaving office when he demanded a gold watch from Boeing for eight years of service - about how the primary role of the Presidency is to just selling America's shit abroad. "NATO is dead, now y'all have to pony up for our military surplus" is just Trump's version of this.