[Music] Hello and welcome to Morning Brief Market Sunrise. I'm Raman Carmali live from Yahoo Finance Studios in London. It's Wednesday, 5th November.Coming up on the show, global stocks continue to slide after Wall Street's tech selloff. The current government shutdown is now the longest on record. And New York has a new mayor.>> This is not only how we stop Trump, it's how we stop the next one. So, Donald Trump, since I know you're watching, I have four words for you. Turn the volume up.[Music] Well, the f ...

Core Viewpoint - Tesla's stock has experienced a significant decline of 5.1% due to concerns regarding CEO Elon Musk's proposed $1 trillion compensation plan and opposition from Norway's $2 trillion sovereign wealth fund, which is one of Tesla's largest shareholders [1] Financial Performance - Tesla is currently valued at $1.4 trillion with a revenue of $96 billion, trading at $444.26 [5] - The company has reported a revenue growth of -1.6% over the last 12 months and an operating margin of 5.1% [5] - Tesla's stock is trading at a P/E multiple of 282.3 and a P/EBIT multiple of 205.7 [5] Historical Stock Performance - TSLA stock has seen a decline of 73.6% from a high of $409.97 on November 4, 2021, to $108.10 on January 3, 2023, while the S&P 500 declined by 25.4% during the same period [6] - The stock fully regained its pre-crisis peak by December 11, 2024, reaching a high of $479.86 on December 17, 2024, and is currently trading at $444.26 [6] - Historical data shows that TSLA has returned a median of 60.8% within a year after substantial dips since 2010 [5] Risk and Recovery Analysis - The stock has underperformed compared to the S&P 500 during various economic downturns, raising concerns about its downturn resilience [3] - TSLA stock dropped by 60.6% from a high of $61.16 on February 19, 2020, to $24.08 on March 18, 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500, but fully recovered by June 8, 2020 [8] - The stock also decreased by 53.5% from a peak of $25.67 on September 18, 2017, to $11.93 on June 3, 2019, with a full recovery by December 18, 2019 [8]

Core Insights - The article provides a comprehensive market analysis of Tesla Inc., highlighting its performance and potential investment opportunities in the electric vehicle sector [1] Group 1: Company Performance - Tesla's recent quarterly earnings report showed a revenue increase of 30% year-over-year, reaching $24 billion [1] - The company delivered 466,000 vehicles in the last quarter, marking a 15% increase compared to the previous quarter [1] - Gross margins for Tesla improved to 25%, reflecting operational efficiencies and cost management strategies [1] Group 2: Market Trends - The electric vehicle market is projected to grow at a CAGR of 20% over the next five years, driven by increasing consumer demand and government incentives [1] - Competitors in the EV space are ramping up production, which may impact Tesla's market share if not addressed [1] - The global shift towards sustainable energy solutions is expected to benefit Tesla, positioning it as a leader in the industry [1] Group 3: Investment Opportunities - Analysts suggest that Tesla's expansion into new markets, including Asia and Europe, presents significant growth potential [1] - The introduction of new models, such as the Cybertruck, is anticipated to attract a broader customer base and drive sales [1] - Strategic partnerships and advancements in battery technology are likely to enhance Tesla's competitive edge [1]

Core Insights - Tesla is facing a pivotal moment as shareholders vote on CEO Elon Musk's proposed $1 trillion performance-based pay package, which has sparked significant debate regarding its size and necessity [1][2][3] Group 1: Musk's Pay Package - The proposed pay package is contingent on Musk achieving ambitious targets, including increasing adjusted EBITDA to $400 billion by 2035 and reaching a market value of $8.5 trillion [2] - Major investors, including Cathie Wood and Michael Dell, support Musk's pay, while critics, such as Norway's sovereign-wealth fund, express concerns over potential share dilution and the company's reliance on Musk [3][4] - The board defends the package, emphasizing that Musk's leadership is crucial for Tesla's success and profitability in the EV market [5] Group 2: Tesla's Current Position - Tesla delivered 497,099 vehicles in Q3 2025, marking a 7.4% year-over-year increase, attributed partly to buyers taking advantage of a federal EV tax credit [6] - However, sales in October showed significant declines in Europe, with drops of 89% in Sweden and 86% in Denmark, indicating demand pressures from competition and an aging product lineup [8] - Tesla's Energy Storage business is performing well, achieving record deployments and becoming the company's most profitable division [9] Group 3: Future Prospects - Tesla's robotaxi initiative is expanding, with plans to pilot in multiple metro areas by year-end, leveraging existing self-driving hardware [10] - Upcoming product launches, including the Cybercab and Tesla Semi, are expected in 2026, with the company maintaining a strong financial position, ending Q3 with over $41 billion in cash and investments [11] - Despite a year-to-date share price increase of around 10%, Tesla's valuation remains high compared to competitors, with a forward price-to-sales ratio of 13.89 [12][14]

Core Points - Norway's sovereign wealth fund, a significant investor in Tesla, announced on November 4 that it will oppose a proposed compensation package for CEO Elon Musk, which could potentially amount to $1 trillion [1] Group 1 - The compensation package in question is designed to reward Elon Musk based on Tesla's performance metrics [1] - The fund's decision reflects concerns over the scale of the proposed compensation, which is unprecedented in the corporate world [1] - This move by Norway's sovereign wealth fund could influence other investors' perspectives on executive compensation at Tesla [1]

Core Insights - Tesla's sales volume in Germany more than halved in October compared to the same month last year, according to the German road traffic agency KBA [1] - Despite the decline in Tesla's sales, overall sales of battery electric vehicles in Germany increased [1] Group 1 - Tesla's sales volume in Germany decreased significantly, indicating potential challenges in the market [1] - The overall market for battery electric vehicles is growing, suggesting a shift in consumer preferences or increased competition [1]

Core Insights - Tesla's shares have declined due to falling sales in China and investor opposition to Elon Musk's compensation package, yet the company shows underlying resilience [1] Sales Performance - Tesla's wholesale sales from its Shanghai factory dropped 9.9% year-over-year in October to 61,497 units, marking the lowest sales since May and reversing a 2.8% gain in September [2] - The decline in sales was influenced by waning interest in the six-seat Model Y Long Range, which saw a 32% month-over-month drop, amid a competitive price war that also affected rival BYD with a 12% global sales decline [2] European Market Impact - In nine key European countries, Tesla registrations fell by 36.3% year-over-year in October, indicating challenges in maintaining market share [3] Investor Sentiment - Norges Bank Investment Management, managing Norway's $2.1 trillion sovereign wealth fund, announced it would vote against Elon Musk's proposed compensation plan, citing excessive dilution and "key person" risks [3][4] - The fund also opposed the re-election of two board directors, reflecting broader concerns about governance [4] Momentum and Stock Performance - Despite the challenges, Tesla's momentum score improved, with Benzinga Edge's Stock Rankings placing it in the top 10th percentile at 91.29, a rise from 88.62 [5] - Year-to-date, Tesla has gained 17.13%, although it experienced a 3.97% decline over the last five days and a 1.98% dip monthly [6] - In premarket trading, the stock was up 0.57%, with positive trends observed in short, medium, and long-term outlooks despite a poor value ranking [6]

Tesla Inc. (NASDAQ:TSLA) shares have dipped amid fresh blows from slumping China sales and a high-profile investor revolt against Elon Musk‘s eye-popping $1 trillion pay package, yet the electric vehicle giant’s underlying momentum tells a defiant tale of resilience.Check out TSLA’s stock price here. Tesla’s Car Sales Drop In OctoberThe starkest setback hit in China, Tesla’s vital growth engine. October wholesale sales from its Shanghai factory plunged 9.9% year-over-year to 61,497 units—the lowest since Ma ...

Core Points - Tesla is preparing for a significant shareholder meeting on November 6, where key issues regarding the company's future and CEO Elon Musk's performance will be voted on [1][2] - The company has faced political controversies and declining sales, leading to questions about Musk's leadership and Tesla's investment in AI [2] - A proposed $1 trillion pay package for Musk is a central topic of contention, with potential implications for his role as CEO [3][4] Shareholder Meeting Context - The meeting will address Musk's proposed pay package, which could be worth up to $1 trillion over the next decade, following the rejection of a previous $56 billion plan by a Delaware judge [8] - Musk's compensation is contingent upon achieving ambitious milestones, including raising Tesla's market cap to $8.5 trillion by 2035 and selling 12 million vehicles annually [9] - The board has warned that failure to approve the pay package could result in Musk leaving the company [4] Controversy Surrounding Compensation - Proxy advisory firms ISS and Glass Lewis have recommended that shareholders reject Musk's pay proposal, citing concerns over excessive power and lack of oversight [10] - Musk has publicly criticized these firms, referring to them as "corporate terrorists" during a recent earnings call [10] Investment in AI - Tesla is seeking shareholder approval for an investment in Musk's AI startup, xAI, which has quickly gained value and raised over $12 billion [12][13] - xAI's valuation reached approximately $50 billion in 2024, and it has been involved in significant transactions, including acquiring X in an all-stock deal [12][13] Interconnected Ventures and Accountability - Concerns have been raised about potential conflicts of interest due to Musk's involvement in multiple companies, including Tesla, SpaceX, Neuralink, and xAI [14] - Tesla's board has rejected numerous shareholder proposals aimed at increasing accountability, although some proposals have made it to the ballot [15][16] - Proposed measures include amending bylaws to limit derivative lawsuits and integrating sustainability metrics into executive compensation [17]

Tesla's board of directors has pushed in all its chips on Elon Musk. Now investors must decide whether to back the biggest bet in company history. ...