TSLA

NEWS/Earnings

Revenue declined by 9% Y/Y to $21.3 billion ($1.0 billion miss).
The average price per vehicle declined alongside the deliveries, leading to automotive revenue declining by 13% year-over-year.
Gross margin was 17% (-3pp Q/Q, -2pp Y/Y).
Operating margin was 5% (-3pp Q/Q, -6pp Y/Y).
EPS (non-GAAP) was $0.45 ($0.05 miss).


Pros
Cutting cost to help margin.
Manufacturing Mastery!
Energy Business Growing.
More gov cheese with competitors going to hybrids.
Elon and team had a great call.
New autonomous services coming….


Cons
Cash Flow dumping.
Bottom not in. No guidance
Elon pay package up in the air….
Battery tech not as revolutionary as once stated…. DOJO



Pros
Model Y best selling car in the world!
Manufacturing Mastery!
Energy/Solar at mass scale!
Supercharging network
Technology for A.I/FSD Data
Elon the innovator.


Cons
Interest Rates sensitive….
Valuation… Car Company or tech company??
Competition in China? BYD
China slowdown.
Political Elon. Fighting the establishment.



Catalyst
Cybertrucks rolling out.
FSD Beta trial. (Step function improvement)
Refreshed model 3/Y.
Competition dying allover.
Roadster coming?
Mexico Build start.
Personal sentiment increasing.







Everyone Hates Elon

A Delaware judge recently voided a $55 billion compensation package awarded to the Tesla CEO in 2018. The ruling came after a lawsuit was filed by a shareholder(9 shares) who claimed that Musk had close ties with the Tesla board and had too much influence in the negotiations.


The judge found that the pay package was not fair to shareholders and that the Tesla board failed to prove that it was. The judge also noted that the compensation plan was the largest in corporate history and that Musk's control over the company played a significant role in the outcome.

The ruling has left the Tesla board with the task of negotiating a new pay package that has the approval of shareholders and Musk, who recently demanded an increase in his ownership stake in the company.

Elon Musk's pay package
The pay package was worth $55.8 billion, making it the largest compensation plan in history.
The package was approved by Tesla's board in 2018 and included 12 performance milestones.
The milestones were split evenly between market capitalization and operational targets.
Market capitalization milestones required Tesla's market value to reach specific targets, starting at $100 billion and increasing in $50 billion increments up to $650 billion.
Operational milestones were tied to revenue and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
If Musk managed to achieve all 12 milestones, he would have been eligible to receive the full $55.8 billion in stock options.
In 2024, a Delaware judge voided the pay package, ruling that it was excessive and the board failed to prove that it was fair to shareholders.
The judge found that the compensation plan was the largest in corporate history and that Musk's control over the company played a significant role in the outcome.



Not Financial advice.

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