Musk Buys $1 Billion Tesla shares
Musk purchases $1 billion worth of Tesla shares, marking his first open-market buy since 2020. This acquisition involves 2.6 million shares, increasing his stake beyond 13%. The move boosts Tesla’s stock price by nearly 10%, closing at $410.26.
Tesla chair defends Musk pay package
Our view is the opportunity ahead is far greater with Elon at the helm than without. You can’t say ‘I want Elon but I don’t want this bit,’ or ‘Can you dial up this bit?’ I lean into tough discussions…Sometimes he listens, sometimes he doesn’t, and that’s his prerogative…I’ve never, never been worried that he hasn’t devoted enough time to Tesla, even while he was in Washington…It’s not time that I measure, it’s output.
Musk offered $1 trillion pay package
Musk receives a proposed $1 trillion pay package from Tesla, contingent on achieving ambitious goals over the next decade. The plan grants him 423 million shares if Tesla reaches an $8.5 trillion market value, delivers 20 million vehicles, and produces one million humanoid robots and robo-taxis. Shareholders will vote on the package in November. Tesla says the package is incentive-driven:
If Elon achieves all the performance milestones […] his leadership will propel Tesla to become the most valuable company in history. [We] believes hat Mr Musk’s vision and leadership are critical to nailing that execution.
We Robot event showcases Optimus, Cybercab, Robovan
At Tesla’s We Robot event, held at Warner Bros. Studios in Burbank, California, Musk presents three robotic products, including two vehicles: Musk arrives in a Cybercab robotaxi, a fully-autonomous two-door vehicle without a steering wheel or pedals, set for production in 2026 with a price tag under $30,000, and the Robovan, an Art Deco-inspired fully-autonomous multi-purpose vehicle, capable of carrying up to 20 passengers. Tesla plans for these vehicles to operate on an app-based service, where owners can list their cars for others to use autonomously. The Cybercab and Robovan are expected to rely solely on camera-based Vision technology.
The event also showcased Optimus humanoid robots, which were seen pouring drinks and mingling with guests. Musk says Optimus could serve in various roles like teaching, babysitting, or performing household tasks and would be priced between $20,000 to $30,000.
Robotaxi pic.twitter.com/zVJ9v9yXNr
— Tesla (@Tesla) October 11, 2024
Tesla $1 trillion market cap, Musk worth $300 billion
Shares of Tesla increased more than 10% to nearly $330, giving the company a market value of over $1 trillion, for the first time since April 2022, sparked in part by Donald Trump’s presidential election win. The company’s valuation has nearly doubled over the last six months.
Musk’s net worth rose by $13 billion to over $300 billion for the first time in more than two years. Musk is $70 billion wealthier than the next closest competitor, Larry Ellison.
Tesla stock tops volatility charts, more than doubles bitcoin’s
With its stock topping volatility charts at 24%, Tesla (TSLA) more than doubles bitcoin’s October 2024 movement range of 11%. Tesla also records the highest single-day gain at +21.92%, which is a gain of more than twice its largest decline (of -8.78%).
Musk wants more control of Tesla as it moves into AI and robotics
TeslaMusk says he is ‘uncomfortable’ about building Tesla AI and robotics products without 25% voting control:
I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control. Enough to be influential, but not so much that I can’t be overturned. Unless that is the case, I would prefer to build products outside of Tesla. You don’t seem to understand that Tesla is not one startup, but a dozen. Simply look at the delta between what Tesla does and GM. As for stock ownership itself being enough motivation, Fidelity and other own similar stakes to me. Why don’t they show up for work?
Musk reduced his ownership stake in Tesla by selling billlions to fund his purchase of Twitter. Musk’s current £56 billion compensation package is ccurently being examined by Delaware Chancery Court to see if it was fair to shareholders.
I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control. Enough to be influential, but not so much that I can’t be overturned.
Unless that is the case, I would prefer to build products outside of Tesla. You don’t seem to understand…
— Elon Musk (@elonmusk) January 15, 2024
Musk: Cybertruck parts must have ‘sub 10-micron’ Lego-like accuracy
In a leaked email to Tesla employees, Musk says that the Cybertruck needs to be manufactured to single-digit micron tolerance due to its straight edges.
Due to the nature of Cybertruck, which is made of bright metal with mostly straight edges, any dimensional variation shows up like a sore thumb. All parts for this vehicle, whether internal or from suppliers, need to be designed and built to sub 10 micron accuracy. That means all part dimensions need to be to the third decimal place in millimeters and tolerances need be specified in single digit microns. If LEGO and soda cans, which are very low cost, can do this, so can we. Precision predicates perfectionism.
Elon
Tesla cuts China Model Y prices
Tesla lowers prices on its Model Y long-range and performance versions in China. The move comes after sales of China-made Tesla vehicles fell 31%, and it is followed by a 2.7% drop in Tesla shares. Tesla reduced the starting prices of both models by 14,000 yuan ($1,935). The Model Y Long Range’s starting price is down 4.5% to 299,900 yuan, and that of the Model Y Performance is down 3.8% (349,900 yuan). Between August 14 and September 30, Tesla is also offering insurance subsidies in China of 8,000 yuan for buyers of the entry-level, rear-wheel-drive versions of the Model 3.
King: Model S a ‘good automobile’
King says his Tesla Model S is a “good automobile” that has never given him “a speck of trouble.” Purchased in 2013, King concedes that his car does not have “the same range as” newer models, but defends the vehicle and says it “still goes fast.”
Never mind Twitter, what about the car? I bought my Tesla Model S in 2013…it’s never given me a speck of trouble. Still goes fast. Good automobile.
Never mind Twitter, what about the car? I bought my Tesla Model S in 2013. Doesn't have the same range as the newest ones, but it's never given me a speck of trouble. Still goes fast. Good automobile.
— Stephen King (@StephenKing) August 13, 2023
Tesla China sells Cybertruck-inspired cat litter box
Tesla China lists (product link) a self-assembly “Cybertruck Multifunctional Corrugated Cat Litter” that includes a scratching board for cats. The cardboard box, branded ‘Tesla Life’, is made of thickened and moisture-proof corrugated paper, costs ¥89 RMB ($12 US), and is described as:
a futuristic shape, a semi-open cat litter, and thick corrugated paper embedded inside to meet the nature and daily needs of cats.
‘Master of Coin’ leaves Tesla
Zachary Kirkhorn, Tesla’s chief financial officer, resigns after four years in the post. Kirkhorn earned $1.2m in salary as CFO and walks away with $168m in Tesla stock and options. (When he was promoted to CFO, Kirkhorn was granted the secondary title of “Master of Coin,” a reference to the TV series Game of Thrones.) On LinkedIn, Kirkhorn thanked Musk for his “leadership and optimism, which has inspired so many people,” but gave no reason for his departure. Tech analyst Dan Ives said Mr. Kirkhorn was “a key part of this historic Tesla turnaround the last five years” and that his departure was “a blow in the near term” for Tesla.
Tesla accused of inflating in-dash range projections
Tesla faces accusations of hyping the range of its EVs, raising consumer expectations beyond what the cars can actually deliver – a practice that apparently started about ten years ago for marketing purposes. Three experts say Tesla EVs often fail to achieve their advertised range estimates and their own equipment’s projections. The company allegedly rigged its range-estimating software by writing algorithms for the range meter that would display optimistic projections for the distance the vehicle could cover on a single charge. When the battery fell below 50%, the algorithm would show drivers more realistic projections for their remaining driving range. The vehicles were designed with a “safety buffer” to prevent drivers from getting stranded as their predicted range started declining more quickly, allowing about 15 miles of additional range after the dash readout showed an empty battery. The directive to give customers optimistic range estimates apparently came from Musk himself, who “wanted to show good range numbers when fully charged.”
Tesla accused of stifling range complaints
Tesla faces accusations of creating a “Diversion Team” in Las Vegas to suppress thousands of driving range complaints from its customers. With its service centers flooded with appointments, Tesla instructed some of its employees to stop customers complaining about poor driving range from bringing in their EVs for service. Many of the customers had expected better range based on the company’s advertised estimates and the projections displayed by the cars’ in-dash range meters. Apparently, thousands of customers were told nothing was wrong with their car, even with no diagnostics. Tesla managers told “Diversion Team” employees that they were saving the company about $1,000 for every canceled appointment. Inside the Nevada team’s office, some employees celebrated canceling service appointments by putting their phones on mute and striking a metal xylophone, triggering applause from coworkers who sometimes stood on desks. The team often closed hundreds of cases a week and staffers were tracked on their average number of diverted appointments per day.
Musk wants to give amputees robotic limbs powered by brain implants
While updating investors on Tesla’s second-quarter performance, Musk says he wants to help amputees by combining advanced robotics from Tesla with brain-implant technology from Neuralink. Musk says the combination could give amputees…
a robot arm or leg that is as good, maybe better long term, than a biological one…We believe we can give, basically, a cyborg body that is incredibly capable.
Musk: Tesla may cut prices in ‘turbulent times’
On an analysts’ call, Musk says that he will cut prices again on Tesla’s vehicles due to “turbulent times”:
One day it seems like the world economy is falling apart, next day it’s fine. I don’t know what the hell is going on. We’re in, I would call it, turbulent times.
Tesla shares fall nearly 5% after Musk’s comments.
Musk sees “deflationary pressures” on lithium prices
On a Tesla earnings call, Musk says he is “seeing what seems to be deflationary pressures” on lithium prices, which “went absolutely insane there for a while.” He attributes the spike to rising commodity prices that made it difficult to cut costs in 2022. Karn Budhiraj, Tesla’s vice president for supply chain, says the reduction in commodity prices translates into thousands of dollars on a per-vehicle basis, adding that the company is extending some fixed-price contracts with suppliers through the end of this decade to lock in the lower costs.
Tesla builds first Cybertruck
Tesla builds its first Cybertruck for customers at its Giga Texas manufacturing facility in Austin, Texas, four years after the vehicle was announced in November 2019. In a tweet, more than 100 Telsa staff in hard hats and high-vis vests surround the vehicle after it comes of the production line.
First Cybertruck built at Giga Texas!
First Cybertruck built at Giga Texas! 🤠 pic.twitter.com/ODRhHVsd0t
— Tesla (@Tesla) July 15, 2023
Warren urges SEC to investigate Tesla over Twitter ties
Warren sends a letter to the U.S. Securities and Exchange Commission, urging them to investigate Tesla over possible conflicts of interest, misappropriation of corporate assets, and other negative impacts to Tesla shareholders related to Musk’s Twitter takeover. Warren says the Tesla board’s “apparent lack of independence” from Musk raises questions about possible violations of security laws and exchange rules which fall under SEC’s jurisdiction.
Tesla to launch UK electricity supplier
A job ad posted for UK head of operations for Tesla Electric, says Tesla is seeking to apply to Ofgem, the UK’s electricity regulator, for an electricity supply licence, which would allow the company to launch a “retail electricity product in the UK”. The ad says Tesla is seeking to “support the transition of the entire electricity grid to 100pc renewables” by making more use of home batteries.
The project is said to be similar to Tesla’s Texas energy utility, which sells electricity from Tesla Powerwall batteries to the grid during peak times and buys it back when it is cheaper. An industry source says between 10,000 and 20,000 Powerwall units, which cost £9500 in the UK, are believed to have been installed in UK households. Owners of Tesla cars could also eventually use the service, under Ofgem plans to allow electric vehicles to sell electricity back to the grid.