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Elon Musk’s X is rising in value, Fidelity estimates

Credit: Elon Musk/X

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Despite the stream of controversy and negativity directed at its owner, Elon Musk, X, the social media platform formerly known as Twitter, appears to be gaining some footing. This was hinted at by Fidelity Investments’ estimates for the company, which suggest that X’s value is rising. 

Fidelity Investments is among the largest owners of Twitter stock, and it was also among the firms that helped finance Elon Musk’s $44 billion acquisition last year. Following Musk’s takeover, the firm marked down its holdings, valuing its stake in Twitter at $39.60 per share at the end of 2022. 

As per recent disclosures, Fidelity had marked up the value of its X/Twitter sales for the third consecutive month. For the month ending on July 31, Fidelity raised its estimated valuation of X by 8%. This followed an 11% increase in the firm’s estimates for X on June 2023, as noted in an Axios report. 

Fidelity’s disclosures are quite interesting as the firm has been quite conservative with its estimates on the social media company. While Fidelity valued its stake on Twitter at $39.60 per share at the end of last year, fellow Twitter investor Baron Partners estimated its shares at the social media company to be worth $70.20 per share. 

With this in mind, it would seem that X is showing signs that it is becoming more and more stable. If Fidelity, a firm that’s proven to be conservative with the company in the past, has marked up its estimated value for its X shares over the past months, then the social media company may indeed be doing something right. 

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To be fair, recent updates regarding X suggest that some stability is at hand. Amidst the company’s launch of its ad revenue sharing program, for example, mobile app intelligence firm Sensor Tower noted that X saw a ~25% revenue jump. This, according to Sensor Tower, was partly due to an influx of signups for X Premium, which is required to be eligible for the company’s ad revenue sharing program. 

Elon Musk has also issued optimistic predictions regarding X. In a recent post, Musk noted that the idea of X reaching a $1 trillion market cap is “not out of the question.” While the statement may sound farfetched today, other social media companies such as Facebook have achieved similar feats. If X could really become what Musk describes as an “everything app,” then a $1 trillion valuation may really be feasible. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads-up. 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla just made Service even easier and more convenient

The new feature is rolling out to iOS users now; we have not heard any confirmation from Android phone users whether they are receiving it too.

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Credit: Tesla

Tesla just made servicing your vehicle even easier and more convenient than it already is.

All it did was add a new section to its smartphone app.

Tesla has officially launched a new Maintenance tab that estimates the repair date and cost, and uses vehicle data to determine if any part is in need of replacement.

It can be found by accessing the app, going to Service, then hitting Request Service, and then Maintenance.

The new feature is rolling out to iOS users now; we have not heard any confirmation from Android phone users whether they are receiving it too. Since it is not a vehicle capability, we do not believe Tesla will delay the release of the feature to Android phones.

Teslas are already well known for having extremely low maintenance needs, and semi-annual check ups usually only require a tire rotation and some additional windshield washer fluid. There is not a need for things like oil changes or other things that are routinely needed on combustion engine cars due to the lack of parts.

Additionally, the small addition to the company’s smartphone app will help facilitate needs for Service, and could help relieve some congestion, while also streamlining the repair process for technicians.

Tesla to make app change for easier communication following Service

One of the biggest complaints about owning a Tesla is Service wait times, as availability can be extremely limited in some areas. However, Tesla has done a lot to work on increasing the number of Service centers it has, while also working hard to streamline service and make it less time-consuming.

Tesla has aimed to have an F1-style service experience, but it has not worked out that way. With that being said, there are significantly fewer complaints with Tesla’s Service division than in years past. With the presence of Mobile Technicians and more refined Service processes, things are definitely improving.

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Elon Musk hits back at former Tesla employee who disagrees with pay package

Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla?

It won’t be me.

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elon musk speaking
Credit: TED

Elon Musk gave a tough response to a former Tesla employee who spoke out on X about the structure of the CEO’s pay package, arguing that it is an overpayment and would not generate enough shareholder value.

Without a doubt, the biggest issue on the bill at this year’s Tesla Shareholder Meeting in November is that of the pay package that was proposed to CEO Elon Musk.

As the Shareholder Meeting approaches, Tesla is urging those investors to vote in support of Musk’s pay package. So far, the community has been overwhelmingly supportive of giving Musk his massive payday, which could give him $1 trillion in additional holdings if he completes each of the outlined performance tranches.

However, there are a handful of institutional and individual shareholders who have pushed back against the package, either because of its value or because they feel it does not benefit shareholders enough.

Last week, we reported that Institutional Shareholder Services (ISS) advised voting against Tesla’s pay package for Musk. The firm said the payday would give Musk”extraordinarily high pay opportunities over the next ten years,” and it would “reduce the board’s ability to meaningfully adjust future pay levels.”

Tesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm

Additionally, it called the value of the pay package “astronomical.”

On Saturday, a former Tesla employee said on X that Tesla’s proposed pay package for Musk would “barely beat inflation and it would underperform the S&P 500 considerably.” Additionally, he said:

“Sorry, Tesla, some of us (and supposedly, ISS too) simply don’t think that underperforming the S&P 500 this much is worth paying somebody 20 billion dollars worth of company value.

As a fan, I love Tesla, I want it to succeed. As a shareholder, I don’t want Tesla to over-pay for its CEO I strongly believe that the 2025 pay package proposal would over-pay for its CEO, and that other competent CEOs could grow Tesla just as much with way less political drama and cost investors much less that this proposal.”

Musk responded bluntly:

“Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla? It won’t be me.”

It seems the worry about Musk’s potential involvement in politics still looms to many, based on the responses to Musk’s post, which frequently mention that as a downside of his last year as Tesla CEO. However, Tesla’s Board confronted that directly.

In its proxy filing after announcing the pay package, Tesla said that it had three commitments, one of which was that the company would “receive assurances that Musk’s involvement with the political sphere would wind down in a timely manner.”

Tesla Board takes firm stance on Elon Musk’s political involvement in pay package proxy

Musk’s previous pay package was approved by shareholders twice, but it never made it to the CEO because of a lawsuit with the Delaware Chancery Court brought forth by a small-time shareholder.

The response from Musk does seem to show that if this time is no different, he will inevitably step down as CEO in the coming years.

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Tesla rivals are lagging behind alarmingly in this crucial EV necessity

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tesla supercharger
Credit: Tesla

Tesla rivals are lagging behind the company in alarming fashion in this crucial EV necessity: charging.

Tesla has had a long-standing reputation for having the most expansive electric vehicle charging infrastructure, and even as other companies have launched their own as part of the vehicle manufacturing, nobody seems to keep pace with the EV leader.

A report from Paren exhibited this trend in Q3, showing that Tesla overwhelmingly dominated EV charging stall installations over the past three months. This data is based on U.S. installations, where Tesla has long held a dominating position as the leader in overall electric vehicle sales for many years.

In Q3, Tesla installed 1,820 new chargers in the United States, bringing its total presence to 34,328, an all-time market share of 53.2 percent of all charging stalls in the country.

What’s alarming is the fact that all other networks — ChargePoint, Red E, Electrify America, EV Connect, EVgo, Ionna, Blink, Pilot Flying J, and Rivian Adventure — only installed 841 chargers collectively in Q3. That is nearly 1,000 units behind Tesla, despite there being nine companies contributing as competitors.

These nine networks have 10,055 stalls in total, the data from Paren shows, accounting for 15.6 percent of the chargers in the United States.

EV charging is such a crucial part of the ownership experience, and also a part of the ongoing expansion of EV adoption in the United States.

As more people buy EVs and they become a more prominent form of passenger transportation, more chargers are needed. Many owners charge at home, but charging options in public are important to have for traveling, commuting, and for those who do not have access to residential charging.

Tesla ownership without home charging: Here’s how it’s done

With Tesla opening its Supercharger Network to the majority of EV brands over the past two years, things have gotten better.

It has been alarming to see so many companies involved in EV infrastructure essentially accept the gap between Tesla and themselves; not a single company has tried to up its pace to catch up to what Tesla has.

When it comes down to it, as long as there is charging, the manufacturer does not truly matter.

However, it would be nice to see Tesla have some competition in the space, but with its domination and head start in the infrastructure division, it seems the company will have this competitive advantage for years to come.

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