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Elon Musk Visits Hong Kong, Talks Tesla’s Future in China (Video)

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Speaking at a technology startup forum in Hong Kong today, Tesla CEO Elon Musk told the audience, “Hong Kong will probably be the leading city in the world in terms of electric cars”. [It can] serve as an example to the rest of the world on what to do,” Musk said according to the South China News. “I currently do not foresee any city exceeding Hong Kong. It will be the leader of the world,” he added.

The Hong Kong Government has shown a strong support of electric vehicle adoption by its initiatives to install charging stations throughout the city, and enact policies that favor purchasers of electric cars, including a registration tax waiver.

This apparently has worked. In 2010 there were 100 electric cars in Hong Kong. At the end of December, 2015, there were 4,198 EVs on the roads. Tesla sold 2,221 Model S sedans in Hong Kong last year, which accounts for 80 percent of newly-registered electric vehicles in the city.

https://youtu.be/12FVtZh5SLs

Musk speaking at a Special Event for Tesla Hong Kong (above)

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Despite the government’s support of EVs, it has not granted permission to use autonomous driving technology. Hong Kong has banned most features within Tesla’s recent Autopilot update that includes Autosteer and self-driving capabilities. One of the items on Musk’s to-do list while in Hong Kong is to meet with Chief Executive Leung Chun-ying to reassure him autonomous driving technology is safe to use and should be allowed on Hong Kong’s roads.

Elon said he thinks Asia will be the “biggest area of expansion” for Tesla in the next several years. He said his company plans a massive increase in Supercharger stations to accommodate that expected expansion of sales. He did say that Hong Kong has been far more receptive to Tesla automobiles than authorities on the mainland. Because of high import duties, Teslas are more expensive in China than in any other country, he added.

Later in the day, Musk sat down for an interview with Kristi Lu Stout of CNN. She asked him if he thought China, which is plagued by intense smog in its cities, realizes how important electric cars like Teslas are to its future. Musk was very diplomatic, saying that China is embracing electric cars and that volume sales in that country will be dependent on local production. Once Tesla begins making cars in China, its products will be much more competitive with those made by indigenous manufacturers.

Asked by Stout if the Model 3 will be manufactured in China, Musk replied that it would — eventually. “If it was possible for us to do local production in China today, we would. But I think it is going to be close to 3 years before we can achieve that,” he said.  The Model 3 will be a “smaller car without so many bells and whistles as the S or X,” but he expects it will be a “compelling” car.

Last year, Musk was quoted as saying the Model 3 would be definitely manufactured in China, leading some to assume the new car would be built there and then imported to the US. Musk was quick to clarify that the Model 3 and all Teslas would always be built in America, but that other factories in China and Europe might be required to meet demand in those parts of the world. He acknowledges that local production in China will be essential to overcome the high import tariff issue.

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He then told Stout he welcomes the Chevy Bolt to the marketplace, especially if it is what he calls a “compelling car” in its own right. Several times during his visit to Hong Kong, he reiterated that Tesla’s main goal is to accelerate the development of sustainable transport and speed the transition away from fossil fuels. Any company that helps with acheive that goal deserves credit, he thinks.

As always, Musk was poised, confident and dedicated to Tesla’s central mission. His presence in Hong Kong was a testament to his commitment to the Asian market.

Photo Credit: South China News, Electric Jen

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Investor's Corner

Shareholder group urges Nasdaq probe into Elon Musk’s Tesla 2025 CEO Interim Award

The SOC Investment Group represents pension funds tied to more than two million union members, many of whom hold shares in TSLA.

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Credit: xAI/X

An investment group is urging Nasdaq to investigate Tesla (NASDAQ:TSLA) over its recent $29 billion equity award for CEO Elon Musk. 

The SOC Investment Group, which represents pension funds tied to more than two million union members—many of whom hold shares in TSLA—sent a letter to the exchange citing “serious concerns” that the package sidestepped shareholder approval and violated compensation rules.

Concerns over Tesla’s 2025 CEO Interim Award

In its August 19 letter to Nasdaq enforcement chief Erik Wittman, SOC alleged that Tesla’s board improperly granted Musk a “2025 CEO Interim Award” under the company’s 2019 Equity Incentive Plan. That plan, the group noted, explicitly excluded Musk when it was approved by shareholders. SOC argued that the new equity grant effectively expanded the plan to cover Musk, a material change that should have required a shareholder vote under Nasdaq rules.

The $29 billion package was designed to replace Musk’s overturned $56 billion award from 2018, which the Delaware Chancery Court struck down, prompting Tesla to file an appeal to the Delaware Supreme Court. The interim award contains restrictions: Musk must remain in a leadership role until August 2027, and vested shares cannot be sold until 2030, as per a Yahoo Finance report.

Even so, critics such as SOC have argued that the plan does not have of performance targets, calling it a “fog-the-mirror” award. This means that “If you’re around and have enough breath left in you to fog the mirror, you get them,” stated Brian Dunn, the director of the Institute for Comprehension Studies at Cornell University.

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SOC’s Tesla concerns beyond Elon Musk

SOC’s concerns extend beyond the mechanics of Musk’s pay. The group has long questioned the independence of Tesla’s board, opposing the reelection of directors such as Kimbal Musk and James Murdoch. It has also urged regulators to review Tesla’s governance practices, including past proposals to shrink the board. 

SOC has also joined initiatives calling for Tesla to adopt comprehensive labor rights policies, including noninterference with worker organizing and compliance with global labor standards. The investment group has also been involved in webinars and resolutions highlighting the risks related to Tesla’s approach to unions, as well as labor issues across several countries.

Tesla has not yet publicly responded to SOC’s latest letter, nor to requests for comment.

The SOC’s letter can be viewed below.

Nasdaq+Letter Tsla Socig Final by Simon Alvarez

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Tesla investors may be in for a big surprise

All signs point toward a strong quarter for Tesla in terms of deliveries. Investors could be in for a surprise.

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(Credit: Tesla)

Tesla investors have plenty of things to be ecstatic about, considering the company’s confidence in autonomy, AI, robotics, cars, and energy. However, many of them may be in for a big surprise as the end of the $7,500 EV tax credit nears. On September 30, it will be gone for good.

This has put some skepticism in the minds of some investors: the lack of a $7,500 discount for buying a clean energy vehicle may deter many people from affording Tesla’s industry-leading EVs.

Tesla warns consumers of huge, time-sensitive change coming soon

The focus on quarterly deliveries, while potentially waning in terms of importance to the future, is still a big indicator of demand, at least as of now. Of course, there are other factors, most of them economic.

The big push to make the most of the final quarter of the EV tax credit is evident, as Tesla is reminding consumers on social media platforms and through email communications that the $7,500 discount will not be here forever. It will be gone sooner rather than later.

It appears the push to maximize sales this quarter before having to assess how much they will be impacted by the tax credit’s removal is working.

Delivery Wait Time Increases

Wait times for Tesla vehicles are increasing due to what appears to be increased demand for the company’s vehicles. Recently, Model Y delivery wait times were increased from 1-3 weeks to 4-6 weeks.

This puts extra pressure on consumers to pull the trigger on an order, as delivery must be completed by the cutoff date of September 30.

Delivery wait times may have gone up due to an increase in demand as consumers push to make a purchase before losing that $7,500 discount.

More People are Ordering

A post on X by notable Tesla influencer Sawyer Merritt anecdotally shows he has been receiving more DMs than normal from people stating that they’re ordering vehicles before the end of the tax credit:

It’s not necessarily a confirmation of more orders, but it could be an indication that things are certainly looking that way.

Why Investors Could Be Surprised

Tesla investors could see some positive movement in stock price following the release of the Q3 delivery report, especially if all signs point to increased demand this quarter.

We reported previously that this could end up being a very strong rebounding quarter for Tesla, with so many people taking advantage of the tax credit.

Whether the delivery figures will be higher than normal remains to be seen. But all indications seem to point to Q3 being a very strong quarter for Tesla.

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Tesla bear Guggenheim sees nearly 50% drop off in stock price in new note

Tesla bear Guggenheim does not see any upside in Robotaxi.

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tesla showroom
Credit: Tesla

Tesla bear Guggenheim is still among the biggest non-believers in the company’s overall mission and its devotion to solving self-driving.

In a new note to investors on Thursday, analyst Ronald Jewsikow reiterated his price target of $175, a nearly 50 percent drop off, with a ‘Sell’ rating, all based on skepticism regarding Tesla’s execution of the Robotaxi platform.

A few days ago, Tesla CEO Elon Musk said the company’s Robotaxi platform would open to the public in September, offering driverless rides to anyone in the Austin area within its geofence, which is roughly 90 square miles large.

Tesla CEO Elon Musk confirms Robotaxi is opening to the public: here’s when

However, Jewsikow’s skepticism regarding this timeline has to do with what’s going on inside of the vehicles. The analyst was willing to give props to Robotaxi, saying that Musk’s estimation of a September public launch would be a “key step” in offering the service to a broader population.

Where Jewsikow’s real issue lies is with Tesla’s lack of transparency on the Safety Monitors, and how bulls are willing to overlook their importance.

Much of this bullish mentality comes from the fact that the Monitors are not sitting in the driver’s seat, and they don’t have anything to do with the overall operation of the vehicle.

Musk also said last month that reducing Safety Monitors could come “in a month or two.”

Instead, they’re just there to make sure everything runs smoothly.

Jewsikow said:

“While safety drivers will remain, and no timeline has been provided for their removal, bulls have been willing to overlook the optics of safety drivers in TSLA vehicles, and we see no reason why that would change now.”

He also commented on Musk’s recent indication that Tesla was working on a 10x parameter count that could help make Full Self-Driving even more accurate. It could be one of the pieces to Tesla solving autonomy.

Jewsikow added:

“Perhaps most importantly for investors bullish on TSLA for the fleet of potential FSD-enabled vehicles today, the 10x higher parameter count will be able to run on the current generation of FSD hardware and inference compute.”

Elon Musk teases crazy new Tesla FSD model: here’s when it’s coming

Tesla shares are down just about 2 percent today, trading at $332.47.

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