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Group 1 - Morgan Stanley auto research analyst Adam Jonas is transitioning to a new role focusing on artificial intelligence themes, moving away from his long-standing coverage of the automobile industry [1][2] - Jonas has nearly 30 years of experience in the auto sector and will now concentrate on physical/embodied AI, including areas such as autonomous vehicles (AVs), electric vertical takeoff and landing (eVTOL) aircraft, space technology, and humanoid robots [2] - Andrew Percoco will take over the coverage of the North American auto industry at Morgan Stanley in the coming months [3] Group 2 - Jonas gained recognition on Wall Street as a long-time bull on Tesla, proposing a broader vision for the company that included autonomous robotaxis to support its high valuation [3] - The internal move of Jonas was first reported by Bloomberg News, indicating a significant shift in Morgan Stanley's research focus [3]

Core Viewpoint - Tesla has announced an interim compensation package worth approximately $29 billion for CEO Elon Musk, emphasizing the need to retain him amid intense competition for top talent in the tech industry [3][4][5]. Compensation Details - The compensation will consist of 96 million Tesla shares awarded to Musk, intended to align with his contributions to the company and its shareholders [4]. - This announcement follows a Delaware court ruling that invalidated a previous compensation package valued at about $55.8 billion, with Tesla currently appealing that decision [4][10]. Strategic Importance - The board members highlighted Musk's role as a "magnet for hiring and retaining talent" as Tesla shifts focus from electric vehicles to becoming a leader in AI and robotics [6]. - The interim compensation is described as a "good faith" payment, reflecting the urgency to keep Musk engaged with Tesla during a challenging period [5][9]. Market Context - The announcement comes as Tesla faces declining car sales and profits, partly attributed to Musk's political engagements and a slow rollout of new vehicle models [7]. - Musk has warned of potentially "rough" quarters ahead as the company invests in robotics and AI, indicating a transitional phase for Tesla [8]. Shareholder Reaction - Following the announcement, Tesla shares experienced a 2.4% increase in early trading, suggesting a positive market response to the interim compensation decision [10].

Group 1 - Tesla has granted CEO Elon Musk a new $29 billion pay deal to retain him as the company shifts focus from electric vehicles to robotaxis and humanoid robots [1][5] - The new compensation includes an "interim award" of 96 million shares, described as a "good faith" payment following the invalidation of a previous $50 billion pay package by a Delaware court [1][11] - Musk must remain a top executive for two years and hold the shares for five years, with an exercise price of $23.34 per share [2] Group 2 - Tesla plans to propose a longer-term CEO compensation plan at its annual investor meeting on November 6, aimed at keeping Musk focused on the company amid his political activism and challenges in the electric vehicle market [5][6] - Musk's political involvement and other business interests have raised concerns about his commitment to Tesla, which remains his primary source of wealth [7] - With the new stock award, Musk's stake in Tesla is projected to increase from 12.7% to 15%, reinforcing his control over the company [10]

Key Takeaways TSLA's regulatory credit sales fell to $439M in Q2'25, down from $890M a year earlier.A new bill has removed CAFE penalties, slashing automakers' need to buy credits from Tesla.Legacy automakers scaling EV production further reduces demand for TSLA's credits.For years, Tesla (TSLA) has made big money not just from selling electric vehicles (EVs), but also from selling regulatory credits to other automakers. These credits have aided Tesla's overall margins, even when car sales were under pressu ...

A new pay package for Tesla Inc. TSLA CEO Elon Musk could alleviate one of the factors holding back the price of the electric vehicle company's shares, according to Wedbush analyst Dan Ives in a new investor note. What Happened: The new pay package comes as Musk made comments over the weekend about his ownership stake in the electric vehicle company. "Tesla filed a Form 8-k with the Board of Directors approving an award of 96 million shares of restricted stock under the company's 2019 Equity Incentive Plan, ...

Cathie Wood's bold forecast that autonomous taxi networks could generate $8-10 trillion in revenue over the next 5 to 10 years is capturing Wall Street's imagination. At the heart of this robotaxi revolution are Tesla Inc TSLA, Nvidia Corp NVDA and Alphabet Inc GOOGL GOOG, each uniquely positioned to ride the wave and reap massive rewards. Track NVDA's AI-driven surge here. To put this in perspective, $10 trillion is nearly 9% of the entire world's current GDP—a transformative economic force. Tesla: Driving ...

In January, Chancellor Kathaleen McCormick upheld a prior ruling in the case, Tornetta v. Musk, that the compensation plan was improperly granted. Tesla shareholders approved the pay package in June 2024. The case is now before the Delaware Supreme Court. Tesla CEO Elon Musk was awarded an interim pay package of 96 million shares of the company over the weekend. The shares would be worth about $29 billion. Tesla stock climbed about 2% Monday. The company said in a filing Sunday that the pay package would ve ...

Core Points - Tesla's board awarded Elon Musk a new pay package worth $29 billion, which vests in two years, aimed at retaining him during a critical transition from its struggling auto business to robotaxis and humanoid robots [1][12] - The deal grants Musk 96 million new shares, amidst a prolonged sales slump affecting Tesla's stock performance [1][6] - The special committee overseeing Musk's compensation expressed confidence that this award will incentivize him to remain at Tesla, despite his extensive business interests [2] Compensation Context - A previous stock-based compensation package for Musk, valued at over $50 billion, was rejected by a Delaware judge for being excessive, leading to Musk's appeal and the relocation of Tesla's incorporation to Texas [3][4] - The new $29 billion package will not result in a "double dip" if the original deal is restored; it will either be voided or offset [4] - Musk is Tesla's largest individual shareholder, owning approximately 13% of the company, and the announcement is expected to alleviate investor concerns regarding his commitment [6] Strategic Importance - Analysts emphasize the necessity of establishing a long-term compensation strategy before Tesla's upcoming shareholder meeting on November 6, which will address ongoing concerns [9] - The new shares will vest only if Musk remains a key executive through at least 2027, with a five-year lockup period for selling shares [9] - Tesla faces challenges such as an aging car lineup and increased competition from Chinese automakers like BYD, which Musk will need to address to lead a successful turnaround [11]

Group 1 - Tesla's board has approved a $29 billion share award to Elon Musk, consisting of 96 million new shares, following a court's blockage of a previous, larger package [1][7] - The new share award aims to enhance Musk's voting power from the current 13%, ensuring his continued leadership as CEO [1] - The decision to increase Musk's stake is seen as crucial for maintaining his focus on Tesla amid his political associations, particularly with Donald Trump [2][3] Group 2 - Tesla is currently focused on launching a new, cheaper model to boost sales and compete against rising competition, especially from China [4] - The company faces challenges due to reduced support for electric vehicles from the Trump administration, which Musk acknowledges could lead to "a few rough quarters" [4] - Tesla's revenues are not expected to reflect the anticipated rollout of its self-driving software until late next year [7] Group 3 - A special committee within Tesla's board has been formed to address compensation matters related to Musk, with the new award pending shareholder approval [8][10] - The committee expressed confidence that the new award will incentivize Musk to remain with Tesla, despite his extensive business interests [10] - If the Delaware courts reinstate the previous 2018 performance award, the new interim grant will either be forfeited or adjusted to prevent double compensation [10]