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How Tesla Challenges Other Car Makers

Tesla challenges other car makers to build better cars says Diarmuid O’Connell, Telsa’s vice president of business development at an industry conference.

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Tesla Motor service center. (Source: Tesla Motors)

Tesla Motor service center. (Source: Tesla Motors)

Diarmuid O’Connell, Tesla’s VP of business development, had harsh words for competitors last week at the CAR management briefing seminars in Michigan. He told the group that Tesla challenges other car makers to build better cars.

“You can split the market of EVs into two programs,” he said. “Many are compliance programs. Exceptions are Nissan, ourselves and BMW. Most are focused on minimum compliance, lowest common denominator behavior, and the vehicles reflect that. In some respect, they are appliances, in terms of the way they look.”

CARB And The EPA

His remarks come at a time when two important regulatory programs are up for review. The California Air Resources Board is taking a look at its zero emissions vehicle policies and the Environmental Protection Agency is considering changes to its CAFE standards.

Traditional car makers are trying to get both agencies to relax those standards, but O’Connell says they should stop trying to “slow walk” the rate of progress toward a emissions free future and get busy building better cars. He says his company wants California and the EPA to raise their standards, not relax them.

“From an empirical standpoint, the [regulations] are very weak, eminently achievable and the only thing missing is the will to put compelling products on the road,” he said, according to The Wall Street Journal.

This week, Mary Nichols, CARB chairwoman since 2007, announced that she isn’t satisfied with having just a few electric cars on California roads. The current standard calls for 2.7% of all cars sold in California to be electric. Nichols wants to set the bar higher. In fact, she would like it if all the cars sold in California were electric by 2030.

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For its part, the automotive industry is busy telling the EPA that the current CAFE standards are too high. Any further tightening would be bad for business. “We need consumers to buy them in high volumes to meet the steep climb in fuel economy standards ahead,” the Alliance of Automobile Manufacturers, an industry lobbying group, told the conference. The implication is that higher standards will kill the automotive business, cause massive layoffs, and have a negative impact on the economy.

This is precisely the same argument the automobile industry made about safety related changes in the ’50’s, seat belts in the 60’s, exhaust emission in the 70’s, airbags in the 90’s and better crash test performance at the beginning of the 21st century. Its complaints today are just more of the same.

CAFE Olay

The furor over EPA standards is actually a tempest in a teapot. On the surface of it, the 54.5 mpg requirement by 2025 seems like a huge increase above present day performance. But in reality, that standard is based on the old EPA mileage testing protocol, which was amended several years ago because it resulted in numbers that were wildly optimistic.

When the EPA adopted a new standard designed to better reflect real world expectations, it did not apply the new standard to the computation of the 2025 goal. If it did, that 54.5 mpg number would convert to around 37 mpg — which many of today’s cars are already capable of achieving.

To suggest that car companies cannot achieve a CAFE of 37 mpg using the current EPA protocol is patently absurd. In fact, a representative of Johnson Controls, one of the largest suppliers of components to the automobile manufacturing , said last year that car makers can easily meet the new standard and, in fact, many are already doing so today with internal combustion cars.

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Charging Technology

One area where other manufacturers need to step up involves recharging technology for EVs and plug-in cars. At present, the best any of those other cars can handle is 50 kW. Tesla already has Superchargers with more than double that capacity. It’s new liquid cooled charging cables indicate the company has even higher power chargers in mind for the future.

O’Connell told the conference that drivers of competitors’ cars would be welcome to use the Supercharger network if only their cars were capable of handling the higher current. Tesla made its Supercharger patents public last year, but no other manufacturer has expressed any interest in them. Instead, the industry seems content to live with 50 kW “fast chargers” that really aren’t all that fast.

The Week In Review

Tesla has had a rough week. The stock market was disappointed with what Elon Musk had to say during the 2nd quarter conference call and punished the company’s stock, which closed down nearly 9% for the week.

The real question on people’s minds is whether Tesla will bring electric cars to the masses the way the Model T put the world on wheels almost a century ago, or whether it is a company that caters only to the wealthy and will flame out the way the Concorde SST did? If you are reading this, chances are we know how you would answer that question.

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Elon Musk

Tesla schedules Roadster unveiling event, and you won’t believe when it is

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Tesla has tentatively scheduled its unveiling event for the Roadster’s next-generation iteration, and you will not believe the date the company picked for it.

Tesla CEO Elon Musk said during the 2025 Annual Shareholders Meeting that the company is aiming for an April 1 demo event.

Yes, April Fools’ Day.

Tesla originally aimed for its “most epic demo” to take place at the end of this year. However, the writing on the wall as 2025 winds down seemed to indicate the company was not quite ready to show off everything it plans to implement into the Roadster.

Its capabilities have been teased quite heavily throughout most of the year, but the biggest hints came last week when Musk appeared on the Joe Rogan Experience Podcast.

He said:

“Whether it’s good or bad, it will be unforgettable. My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars. I think if Peter wants a flying car, he should be able to buy one…I think it has a shot at being the most memorable product unveil ever. [It will be unveiled] hopefully before the end of the year. You know, we need to make sure that it works. This is some crazy technology in this car. Let’s just put it this way: if you took all the James Bond cars and combined them, it’s crazier than that.”

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The Roadster has been somewhat of a letdown, at least in its newest version, thus far. Tesla has routinely delayed the project, putting those who put lofty down payments on the car in a weird limbo, lost at what to do.

One notable pre-orderer cancelled his reservation last week and got in a spat with Musk about it.

Now that there is a definitive date for the Roadster unveiling, Musk and Co. should have a more definitive cutoff date for features and capabilities. Chief Designer Franz von Holzhausen said earlier this year that when they showed Musk what they had done with the Roadster, the CEO encouraged them to do even more with it.

This delayed things further.

Musk also said he believes production would begin between 12 and 18 months after the unveiling, putting it out sometime in 2027.

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Elon Musk

Tesla (TSLA) shareholders officially approve Elon Musk’s 2025 performance award

To earn his landmark pay package, Musk would be required to lift Tesla’s market capitalization from about $1.1 trillion today to $8.5 trillion over the next decade.

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Justin Pacheco, Public domain, via Wikimedia Commons

Tesla (NASDAQ:TSLA) CEO Elon Musk has officially approved his 2025 Performance Award, a landmark pay package that could make him the world’s first trillionaire and make Tesla the most valuable company in the world by a mile. 

The 2025 CEO Performance Award was officially approved by Tesla shareholders at the 2025 Annual Shareholder Meeting.

Elon Musk‘s landmark pay package

As per Tesla, more than 75% of the shareholders approved Elon Musk’s 2025 CEO Performance Award. It was then unsurprising that the approval of Elon Musk’s pay plan received overwhelming applause from the event’s attendees.

The CEO took to the stage with much enthusiasm, welcoming every shareholder to the event and dancing briefly on stage. Optimus also danced on stage smoothly, demonstrating its improved movements to much appause.

Elon Musk’s 10-year targets

To earn his 2025 CEO Performance Award, Musk would be required to grow Tesla’s market capitalization from about $1.1 trillion today to $8.5 trillion over the next decade. At that level, Tesla would surpass every major public company in existence. The compensation plan also requires Tesla’s operating profit to grow from $17 billion last year to $400 billion annually. 

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Apart from leading Tesla to become the world’s biggest company in history, Musk is also required to hit several product targets for the electric vehicle maker. These include the delivery of 20 million Tesla vehicles cumulatively, 10 million active FSD subscriptions, 1 million Tesla bots delivered, and 1 million Robotaxis in operation.

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Elon Musk

Tesla 2025 Annual Shareholder Meeting: How to watch

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Credit: @YunTaTsai1 | X

The 2025 Tesla Annual Shareholder Meeting from Gigafactory Texas is set to kick off at 4 p.m. EDT, 3 p.m. CDT.

The company will be having its typical presentation for the event, where CEO Elon Musk, along with other executives will discuss things like future products, the outlook of its self-driving development, potential releases for next year, and some current events within the company.

However, this year’s Shareholder Meeting has slightly more implications than others, as Investors and Shareholders have spent the last several months petitioning and supporting one of the proposals on the docket that could be the deciding factor in Musk staying or leaving Tesla.

Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation

Proposal four outlines a new compensation package for Musk that could give him $1 trillion in shares if he is able to complete a variety of lofty goals related to production, self-driving, and other important company projects.

Musk has said that he is truly after more influence on company decisions, especially as the Tesla Optimus program is ramping up and becoming a more relevant part of the company’s story.

The CEO said during the Q3 Earnings Call that he would not feel comfortable developing an “army of robots” if he did not have a comfortable amount of influence in some of the decisions. He could be voted our or out-influenced by what he calls “activist shareholders.”

One of those investors came after his past pay package, which was approved by shareholders not once, but twice. Musk still was not able to obtain the pay because of a Delaware Chancery Court ruling.

Nevertheless, this is one of the last ditch efforts Tesla is making to get Musk the compensation that he wants.

The meeting is set to kick off at 3 p.m. local time in Austin. You can watch it via the livestream on X:

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