Group 1 - Tesla has proposed an unprecedented compensation plan for CEO Elon Musk, which could grant him 423.7 million shares worth up to $1.2 trillion if the company's market value rises from $1 trillion to $8.5 trillion within 10 years [1] - The plan includes 12 strict milestones, such as delivering 1 million Optimus humanoid robots, 20 million Tesla vehicles, and launching 1 million autonomous taxi services, along with increasing adjusted EBITDA to $400 billion [1] - Following the announcement, Tesla's stock price rose by 3.64%, reaching a market capitalization of $1.13 trillion, despite a recent 28% decline due to weak sales and Musk's political controversies [1] Group 2 - Elon Musk currently holds 410 million shares of Tesla valued at $138.8 billion, with a total net worth of $378 billion when including assets from SpaceX, xAI, and others [2] - Tesla's board insists that Musk's public engagements do not detract from his leadership focus, which is deemed essential for the company's growth [2] - The rollout of the autonomous taxi service is seen as a key factor in restoring Tesla's growth momentum, paving the way for the realization of the high-value compensation plan [2]

Core Insights - Elon Musk announced that by the end of this year, Tesla's Robotaxis will cover "half of the U.S. population" [1] Group 1 - The deployment of Tesla's Robotaxis is expected to significantly increase, potentially reaching a large portion of the U.S. population [1]

Core Viewpoint - Tesla is undergoing significant leadership changes to address declining sales and market presence, particularly in Europe, as CEO Elon Musk seeks to revitalize the company's performance [1][2]. Group 1: Leadership Changes - Elon Musk has dismissed the head of North American and European operations, Omead Afshar, due to poor sales performance in Europe [1]. - This marks the second high-level executive change within the month, indicating Musk's aggressive restructuring efforts to boost global sales [1]. Group 2: Sales Performance - Tesla's electric vehicle sales in Europe have dropped significantly, with a 28% decrease in May compared to the previous year, despite an overall increase in demand for electric vehicles in Europe [1]. - The number of new Tesla registrations in Europe fell to 8,729 units in May, representing a 40.5% year-over-year decline, reducing its market share from 1.6% to 0.9% [2]. - Year-to-date, Tesla's market share in Europe has hovered around 1%, down from approximately 2% a year ago [2]. Group 3: Analyst Expectations - Analysts expect Tesla's global deliveries for Q2 to be around 393,000 units, reflecting an 11% year-over-year decline but a 17% increase from the previous quarter [2]. - Baird has revised its Q2 delivery forecast down to 377,000 units, citing weak third-party data and production adjustments as contributing factors [3]. - UBS has maintained a "sell" rating on Tesla, projecting Q2 global deliveries at 366,000 units, which is 10% lower than market expectations [4].

Core Insights - Cathie Wood's ARK Investment Management has reduced its stake in Tesla ahead of the anticipated launch of the Robotaxi service, which has been a key reason for her bullish outlook on the company [1][4] - The total reduction amounts to nearly 50,000 shares, valued at approximately $17 million, impacting market sentiment and leading to a decline in Tesla's stock price [2][4] - Despite the recent sell-off, Tesla remains the largest holding in ARKK, constituting nearly 13% of the portfolio [4] Summary by Sections - **Reduction Details** - ARK Investment Management sold 27,377 shares on Tuesday, 15,817 shares on Wednesday, and 6,511 shares on Friday, totaling nearly 50,000 shares [1][2] - The estimated value of the shares sold is around $17 million [2] - **Market Impact** - Following the sell-off, Tesla's stock price fell over 1% to $342.69 after a 23% increase in May [2] - **Future Outlook** - Wood's reduction in shares comes just before Tesla's planned launch of the Robotaxi service on June 12 in Austin, Texas [4] - Wood has previously expressed optimism about Tesla's stock, despite recent sales declines and a 35% drop from 2025 lows [4] - The Robotaxi service is expected to provide a cost-effective alternative to traditional car ownership, allowing consumers to pay on-demand like current ride-sharing services [4] - **Price Target** - ARK has set a target price of $2,600 for Tesla by 2029, which is approximately 660% higher than the current stock price [5]