A WSJ reporter got a glimpse of a technology that could soon spread around the world: Chinese-made robotaxis https://t.co/vW3M22meGy ...

Core Insights - Tesla shareholders have expressed strong confidence in Elon Musk, potentially paving the way for a $1 trillion payday for him as the company focuses on AI, robotaxis, and chip development [1] Group 1: Company Strategy - Tesla is doubling down on artificial intelligence, aiming to enhance its capabilities in this area [1] - The company is also investing in the development of robotaxis, which could significantly impact its business model and revenue streams [1] - There is a strong emphasis on advancing chip technology, which is critical for Tesla's AI and autonomous driving initiatives [1] Group 2: Shareholder Sentiment - The recent vote of confidence from shareholders indicates a strong belief in Musk's vision and leadership [1] - This support may lead to substantial financial rewards for Musk, contingent on the company's performance and strategic execution [1]

Valuation & Future Growth - ARK predicts Tesla's stock price could reach $2,600 by 2030 [1] - 90% of the $2,600 valuation is attributed to Robotaxis [1] - Potential for even higher valuation if Optimus scales faster than expected [1] Business Diversification - Tesla is expanding beyond cars into robotics, energy, and AI [1]

BREAKING: Futures Mixed Amid Earnings Movers; Elon Musk Pay Vote Due Tesla (TSLA) stock is trading around a buy point with the EV giant's annual shareholder meeting scheduled after the stock market close Thursday. Investors will decide whether to approve CEO Elon Musk's $1 trillion pay deal along with Tesla investment in xAI and several other measures. In the run-up to Thursday's votes. Musk has said the $1 trillion pay proposalâ€| Related news These Are The Best Robinhood Stocks To Buy Or Watch Now 11/05/2 ...

Tesla & Elon Musk - Incentives are well aligned, and if Elon Musk and his team deliver a 41% compound annual growth rate for EBITDA over ten years, the stock is expected to outperform enormously [1] - Prediction markets indicate a high probability (90-95%) of a proposal passing [2] - Elon Musk's departure five or three years ago would have significantly impacted the progress of robotaxis and AI projects [3] - Elon Musk's brilliance and the team he has attracted are considered necessary to capitalize on humanoid robots [4] - Elon Musk is considered the right leader to bring the humanoid robot story to life [5] - The company would be less confident in building the humanoid robot part of the model without Elon Musk as CEO [6] Robotaxis & Humanoid Robots - The company's $600 price target for 2030 is based on 90% robotaxi valuation, with very little attributed to humanoid robots [4] - Robotaxis are considered robots, electric, and AI-powered, providing a running start for humanoid robot development [5] Market Skepticism & Investment Strategy - The speaker is happy about the current skepticism in the tech sector, contrasting it with the lack of skepticism in the late 1990s [8] - The speaker views the skepticism as an opportunity to build the portfolio [11] - Life sciences/healthcare is considered the most undervalued part of the portfolios due to the profound application of AI [11] - The company is focused on technologies first and how they will scale across sectors [13]

Core Viewpoint - Tesla is set to announce the results of a shareholder vote regarding a nearly $1 trillion pay package for CEO Elon Musk, with expectations leaning towards approval due to Musk's significant ownership and retail investor support, despite opposition from top proxy advisors [1][2]. Group 1: Shareholder Vote and Support - The shareholder vote is anticipated to favor Musk's pay package, as he holds substantial shares and retail investors typically align with his decisions [2]. - Major proxy advisors, including Glass Lewis and ISS, have recommended voting against the pay package, indicating some level of dissent among institutional investors [2]. Group 2: Arguments For the Pay Package - Supporters, including Board Chair Robyn Denholm and investor Ron Baron, argue that Musk's leadership is vital for Tesla's future, particularly in competing in robotics and AI [3]. - Baron emphasized Musk's unique role, stating that without his drive and standards, Tesla would not exist [3]. Group 3: Opposition to the Pay Package - Norges Bank Investment Management, managing Norway's $2 trillion sovereign wealth fund, expressed concerns over the size of the award and potential dilution, advocating for a no vote [5]. - Governance expert James McRitchie also opposes the plan, highlighting risks related to demand and profitability, especially with the expiration of federal EV tax credits [6]. Group 4: Pay Package Structure - The proposed pay package consists of 12 tranches of shares contingent on Tesla achieving specific milestones over the next decade, including a market cap of $2 trillion and various operational goals [7][9]. - Musk's current stake of approximately 13% could increase to about 25% if he receives the full package, which would grant him over 423 million additional shares [8]. Group 5: Financial and Operational Milestones - Key milestones tied to the pay plan include reaching 20 million vehicle deliveries, 10 million active Full Self-Driving (FSD) subscriptions, and significant earnings targets, starting from $50 billion in annual adjusted profit [10][12]. - Tesla's current market cap is $1.54 trillion, and the company reported an adjusted EBITDA of $4.2 billion in the third quarter [9][12]. Group 6: Contingencies and Additional Benefits - The pay plan includes provisions that allow Musk to earn shares without meeting operational milestones under certain "covered events," such as natural disasters or regulatory changes [14][15]. - The plan does not require Musk to commit a minimum amount of time to Tesla or limit his political involvement, raising concerns about his focus on the company [15][16]. Group 7: Historical Context and Governance Concerns - The vote follows a Delaware Court ruling that Musk's previous pay plan was improperly granted, necessitating a new proposal [17]. - Corporate governance expert Nell Minow criticized Musk's current role as a "part-time CEO," suggesting that a more dedicated commitment to Tesla would warrant consideration of such a substantial pay package [18][19].

Core Insights - Tesla's Q3 earnings report showed mixed results, with a notable decline in net income despite revenue growth, providing clarity amidst ongoing debates about the stock's true value [1] Group 1: Sales and Revenue - Tesla's top-line sales grew by 11.6% year-over-year, marking the first improvement in sales for 2024 [2] - This growth is the first time since Q2 2023 that year-over-year growth exceeded 10%, although it may have been influenced by consumers taking advantage of expiring EV tax credits [3] Group 2: Earnings Performance - Despite revenue growth, Tesla's net income fell by nearly $1 billion, resulting in a 37% year-over-year decline in diluted earnings per share [5] - Increased competition led to price reductions, which negatively impacted profit margins, alongside rising administrative costs and a $400 million tariff hit [5] Group 3: Energy Storage Segment - The energy-storage segment saw a revenue surge of nearly 50%, driven by strong demand for Tesla's advanced battery technology [6] - This segment has consistently delivered double-digit growth, with future growth expected from the new "Megablock" product aimed at large-scale utility customers [6] Group 4: Future Vision and Robotics - Tesla's market appeal is significantly tied to Elon Musk's vision for future technologies, including full self-driving (FSD) and personal robots, rather than just current car sales [7] - Musk announced plans for robotaxis in Austin, Texas to operate without safety monitors by year-end, emphasizing cautious deployment due to potential risks [8] - The company is preparing for volume production of humanoid robots, which Musk positions as a key future revenue driver [8] Group 5: Stock Valuation - The Q3 earnings report did not provide new insights that would alter perceptions of Tesla's stock valuation, with questions remaining about the sustainability of sales recovery [10] - Current financial performance does not support the high stock price, leading to the conclusion that Tesla may be significantly overvalued [11]

Financial Data and Key Metrics Changes - In Q3 2025, Stellantis reported a 13% increase in consolidated shipments and net revenues compared to the prior year, with consolidated shipments reaching 1.3 million units, up 152,000 units [4][18] - Net revenues amounted to €37.2 billion, also reflecting a 13% year-over-year increase, driven by improvements in North America, Europe, and the Middle East and Africa [18][19] - The company confirmed its financial guidance for the second half of 2025, expecting continued sequential improvement [4][22] Business Line Data and Key Metrics Changes - North America saw a 35% improvement in shipments, primarily due to normalized inventory dynamics following previous dealer inventory reductions [18][19] - The Jeep brand experienced a sales growth of 11% in Q3, nearly double the U.S. market's growth of 6% [15] - In Europe, the company faced a 70 basis point decline in market share due to softer volumes in key markets, but plans to introduce new products to regain share [8][21] Market Data and Key Metrics Changes - U.S. sales rose 6% year-over-year, with strong performances from Jeep products like Wrangler and Gladiator [7][18] - The Middle East and Africa region reported a 21% increase in shipments year-to-date, driven by higher volumes in Algeria [21] - South America experienced a 5% decline in revenue, attributed to tough comparisons with the previous year [21] Company Strategy and Development Direction - Stellantis announced a $13 billion investment in U.S. manufacturing, aimed at increasing production capacity by 50% and introducing five all-new vehicles [3][13] - The company is focusing on correcting past strategic decisions by reintroducing key products and enhancing its product lineup to meet customer demand [40][57] - The strategy includes a strong emphasis on product launches, with plans for 10 major new products in 2025, including the Jeep Cherokee and Dodge Charger [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to top-line growth after seven quarters of declines, highlighting improved pricing power and competitive positioning [39][40] - The company is actively engaging with European policymakers to advocate for necessary reforms in the auto industry [9] - Management anticipates a stable pricing environment in the U.S. and is focused on achieving operational efficiencies to offset potential cost increases [77] Other Important Information - Stellantis is working on a strategic review that may lead to project cancellations and adjustments in product offerings, which could have limited cash impact in 2025 [96] - The company is monitoring the global chip supply situation closely, implementing daily management strategies to mitigate disruptions [90] Q&A Session Summary Question: Can you discuss the improvement of production capacity and pricing power? - Management highlighted a return to top-line growth and favorable pricing dynamics, correcting past strategic decisions to fill product gaps [39][40] Question: What are the key levers for improving free cash generation? - The primary driver for free cash flow improvement is expected to be volume growth in North America, with ongoing efforts to enhance savings and efficiencies [42] Question: Can you clarify the dynamics of free cash flow and working capital? - Management confirmed that the anticipated improvement in free cash flow is linked to volume growth, particularly in North America, and acknowledged the importance of managing working capital effectively [49][88] Question: What is the outlook for margins in Europe? - The company aims to improve margins in Europe through strategic product actions and regulatory engagement, despite facing challenges in the market [84][87] Question: How will the $13 billion investment impact cost structure and competitiveness? - The investment is expected to enhance production capacity and efficiency, with management confident in maintaining a stable pricing scenario [77][87]

Industry Perspective - ARK Invest believes the convergence among technologies involved in robotaxis and humanoid robots could lead Tesla to super-exponential growth [1] - This growth is contingent on superior execution by Tesla [1] Analyst Opinion - Glass Lewis and ISS are perceived to lack understanding of the technological convergence in robotaxis and humanoid robots [1]

Technology Convergence - ARK Invest believes the convergence of technologies in robotaxis and humanoid robots could lead Tesla to super-exponential growth, but only with superior execution [1] Index Fund Voting Rights - The industry suggests index funds could be stripped of their voting rights, potentially reducing expenses and headaches [1]