Wall Street is now reacting to Tesla (NASDAQ: TSLA) CEO Elon Musk’s massive performance-based pay proposal, valued at $1 trillion.The plan links Musk’s payout to market valuation milestones ranging from $2 trillion to $8.5 trillion, alongside ambitious operational goals. Notably, the shares would vest over a period of up to ten years, provided that Musk remains in a leadership role.Now, according to Baird analyst Ben Kallo, who reiterated a ‘Neutral’ rating on Tesla with a $320 price target following the an ...

Tesla's U.S. market share dropped to a near eight-year low in August as buyers chose electric vehicles from a growing stable of rivals over the aging lineup offered by CEO Elon Musk's company, according to data from research firm Cox Automotive shared exclusively with Reuters. ...

Core Concerns - Tesla's sales numbers have significantly declined globally, with profitability suffering and the Cybertruck underperforming [1] - The company's share price has dropped over 25% from its highs, indicating investor concerns [1] Future Focus - Tesla's Master Plan Part 4 largely overlooks its core automotive business, with minimal mention of electric vehicles and solar products, instead emphasizing autonomous driving, AI, and humanoid robots [2][3] - CEO Elon Musk has indicated that up to 80% of Tesla's future value could derive from its Optimus humanoid robots, suggesting a shift in focus away from electric vehicles [3] Market Position - The competitive landscape for electric vehicles has intensified, with many automakers now producing EVs, diminishing the unique appeal of Tesla's existing lineup [4] - Musk's enthusiasm appears to be directed towards futuristic technologies rather than the current EV market, raising concerns about Tesla's commitment to its core business [4][5] Investment and Growth Challenges - There is a risk of underinvestment in Tesla's EV business, which could lead to further market share loss to competitors while pursuing speculative ventures with uncertain returns [6] - A proposed compensation package aims to incentivize Musk to focus on the core business, with ambitious goals such as delivering 20 million vehicles and achieving 10 million active full self-driving subscriptions [8][9] Strategic Uncertainty - The effectiveness of the compensation package in retaining Musk's focus on the core EV business remains uncertain, with potential implications for Tesla's long-term viability if the automotive segment deteriorates [10]

September 7, 2025 08:00 PM GMT Top Pick Autos & Shared Mobility | United States of America | Stock Rating | | | Overweight | | | --- | --- | --- | --- | --- | | Industry View | | | In-Line | | | Price target | | | $410.00 | | | Shr price, close (Sep 4, 2025) | | | $338.53 | | | Mkt cap, curr (mm) | | | $1,191,287 | | | 52-Week Range | | | $488.54-210.51 | | | Fiscal Year Ending | | | 12/24 12/25e 12/26e 12/27e | | | EPS ($)** | 2.41 | 1.37 | 2.69 | 4.34 | | Prior EPS ($)** | - | - | - | - | | ModelWare EPS ...

Core Insights - Tesla has significantly advanced the electric vehicle (EV) market, making EV ownership appealing [1] - Investors are facing uncertainty regarding Tesla's future, particularly in its ventures into AI, robotics, and robotaxis [2] - A recent survey indicates consumer skepticism towards self-driving vehicles, with 87% of drivers feeling unsure or afraid [6][7] Group 1: Robotaxi Program - Tesla launched a pilot program for its robotaxi service in June, but it is limited in scope with only 10 to 20 vehicles and company employees present [4] - Reviews of the pilot program have been mixed, with some praising its potential while others noted operational issues [4] - Analyst Dan Ives expressed a positive view of the program, rating it highly in terms of safety and maneuverability compared to competitors [5] Group 2: Consumer Sentiment - The AAA 2025 survey revealed that 87% of drivers are unsure or afraid of self-driving vehicles, a decline in consumer trust compared to four years ago [6][7] - Stellantis is reportedly pausing its AutoDrive program due to high costs and consumer mistrust, reflecting broader industry concerns [7] - The survey results suggest that if consumer demand for driverless vehicles does not materialize, it could hinder Tesla's strategic focus on robotics and AI [8] Group 3: Future Outlook - Tesla's management is shifting focus towards robotics, robotaxis, and AI, but consumer reluctance poses a significant challenge [8] - Historical trends show that public skepticism often precedes widespread adoption of new technologies, indicating potential for future acceptance [9] - The path to widespread adoption of driverless vehicles is expected to be challenging, requiring investors to reassess their commitment to Tesla's evolving business model [11]

Core Insights - The article discusses the potential value of Tesla's robotaxi, suggesting it is worth significantly more than Waymo's offerings [1]. Group 1: Company Overview - Tesla is highlighted as a key player in the autonomous vehicle market, with a focus on its robotaxi initiative [1]. - Waymo, a subsidiary of Alphabet Inc. (GOOG), is mentioned as a competitor in the same space, but Tesla's robotaxi is positioned as having superior value [1]. Group 2: Investment Strategy - The article emphasizes the importance of sustainable and growth-driven investment strategies, as exemplified by Amrita's family office fund [2]. - The fund aims to maximize shareholder equity while focusing on companies that meet growth-oriented goals [2]. - Amrita's work includes efforts to democratize financial literacy and simplify complex financial concepts for broader understanding [2].

Core Viewpoint - William Blair maintains a "Market Perform" rating for Tesla, advising investors to hold the stock amidst significant developments, including a proposed compensation plan for CEO Elon Musk [1][6] Group 1: Stock Performance - Tesla's stock is currently trading at $354, reflecting a 4.5% increase for the day [2] - The stock has fluctuated between a low of $344.68 and a high of $355.87 during the day, with a yearly high of $488.54 and a low of $210.51 [5] Group 2: Compensation Plan for CEO - The proposed compensation plan for Elon Musk could potentially be valued at $1 trillion, aiming to retain him as CEO for the next decade [2][6] - The plan is structured around 12 tranches of stock awards, contingent on Tesla achieving extraordinary milestones over the next decade [3] - If successful, Musk could receive over 423 million additional shares, increasing his ownership from about 13% to nearly 29%, significantly enhancing his voting power [4]

Core Viewpoint - Tesla has proposed a compensation package for CEO Elon Musk that could exceed $1 trillion if he meets ambitious growth targets, linking his pay to long-term shareholder performance [1][3][6]. Group 1: Compensation Package Details - The proposed plan could grant Musk up to 12% of additional total company shares, contingent on Tesla achieving a market capitalization of at least $8.5 trillion by 2035 [2][10]. - To receive the full compensation, Musk must meet 12 specific milestones related to market capitalization, starting with a $2 trillion market value and increasing by $500 billion increments [9][10]. - The package also includes operational goals, such as delivering 20 million Tesla vehicles, and aims to ensure Musk remains with the company for at least 7.5 to 10 years to receive the full award [10][11]. Group 2: Market Context and Reactions - Tesla's current market capitalization is just over $1 trillion, which has decreased from its peak due to recent weak earnings and sales challenges attributed partly to Musk's political affiliations [3][11]. - Following the announcement of the compensation plan, Tesla shares experienced a 2.5% increase, indicating positive investor sentiment towards the alignment of Musk's pay with shareholder interests [3][12]. - Analysts expect the shareholder vote on the proposal in November to pass, as investors appreciate the performance-based structure of the compensation [11]. Group 3: Public Perception and Challenges - Despite the ambitious compensation plan, there are concerns about potential public backlash against Musk and Tesla, especially given Musk's low favorability ratings in recent polls [7][8]. - The company is currently contesting a Delaware court ruling that invalidated a previous $55.8 billion compensation package for Musk, highlighting ongoing legal and reputational challenges [4][11].

Core Viewpoint - Tesla has proposed a compensation package for CEO Elon Musk that could amount to nearly $1 trillion, contingent on achieving significant milestones over the next decade, potentially making him the world's first trillionaire [2][4][11]. Group 1: Compensation Proposal Details - The proposed compensation package is the largest in history and would grant Musk nearly $975 billion worth of shares if Tesla meets ambitious performance targets [4][7]. - The compensation consists of 12 tranches of shares, with Musk receiving equity based on achieving specific operational and market cap milestones [9][8]. - To receive the full compensation, Tesla must reach a market capitalization of $8.5 trillion, which would require the company to more than double the current market cap of Nvidia, the most valuable company to date [11][13]. Group 2: Milestones and Conditions - Key milestones include delivering 20 million Tesla vehicles, achieving 10 million active Full Self-Driving (FSD) subscriptions, and delivering 1 million robots and 1 million Robotaxis in commercial operation [15]. - The first milestone requires Tesla to reach a market cap of $2 trillion, nearly doubling from its current valuation of approximately $1.1 trillion [10][11]. - The proposal is subject to shareholder approval, with a vote scheduled for November 6 [16]. Group 3: Market Context - Tesla's stock price has seen a decline of over 12% year-to-date, remaining below its peak of $488 in December 2024, despite a recent increase of around 3.9% following the announcement of the compensation proposal [17][16]. - The current stock price is approximately $352 per share, indicating significant growth is needed to meet the proposed market cap milestones [10][16].

Advertising Expenditure - Tesla spent $400,000 on advertising on Elon Musk's social media platform X in 2024, but is projected to spend only $60,000 in 2025 unless there is a significant increase in advertising efforts [1][2] - In the first two months of 2025, Tesla spent $10,000 on X ads, compared to $200,000 spent during the same period in 2024 [2] Advertising Strategy - Tesla had not engaged in advertising until CEO Elon Musk responded to shareholder pressure in 2023, leading to ads appearing on Google and YouTube in late 2023 and early 2024 [3] Active Advertisements - As of February 2025, Tesla has around 700 active advertisements across Google's platforms, although it is unclear if spending has increased since then [4] Expenses Related to Musk's Companies - Tesla paid SpaceX approximately $800,000 for the use of a private jet in 2024, but only $40,000 through February 2025, indicating a potential reduction in this expense [5] - Tesla paid a security company owned by Musk $2.8 million in 2024, an increase from $2.4 million in 2023, with $500,000 paid through February 2025 [6] - The largest transaction between Musk's companies was xAI paying Tesla $198.3 million for Megapack battery storage products, with an additional $36.8 million paid through the first two months of 2025 [6] Related Business Activities - Tesla paid Kimbal Musk's drone company, Nova Sky Stories, $300,000 for a show at the automaker's "We, Robot" event in October 2024 [9]