Tesla Stumbles, but Elon Musk Gets a Massive Payday

Core Insights - Tesla is facing significant challenges, including declining sales and consumer backlash, while CEO Elon Musk has been awarded a $29 billion compensation package [2][9]. Sales Performance - Tesla's registrations in Europe fell by 41.6% year-over-year in July, despite a general surge in electric vehicle sales across the continent [3]. - In China, Tesla's sales of locally made electric vehicles dropped by 8.4% in July compared to the previous year, reversing a small gain from June [5]. Consumer Sentiment - Consumer loyalty for Tesla has sharply declined, dropping from a peak of 73% in June 2024 to 49.9% in March 2025, correlating with Musk's political activities [7]. - The negative impact on Tesla's brand image is evident, as buyers are shifting to other brands due to dissatisfaction with Musk's political stance [6]. Executive Compensation - Tesla's board granted Musk 96 million shares worth approximately $29 billion to ensure his focus on the company amid his various ventures [9]. - This decision follows a court ruling that invalidated Musk's previous compensation package, which was valued at over $50 billion, due to flaws in the approval process [9][10]. Future Outlook - Tesla is at a critical juncture, balancing its current operations in electric vehicles and zero-emission credits with potential future ventures in artificial intelligence, robotics, and robotaxi services [10].