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Ford plans for major restructuring of its EV playbook with $20B budget: Bloomberg

One year after Ford confirmed construction of the Rouge Electric Vehicle Center in Dearborn, Mich., the first Ford F-150 Lightning pre-production units begin leaving the factory. Pre-production model shown. F-150 Lightning available starting spring 2022.

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Ford is planning for a major restructuring of its electric vehicle offensive with a massive budget of up to $20 billion. Bloomberg reports that Ford will utilize specific strategies that Tesla used to gain its notoriety as the EV leader, including a road map for vehicle launches and manufacturing planning and a sizeable budget.

Ford has made drastic changes to its EV leadership, including the acquisition of Doug Field, a former Tesla engineer who left the company for Apple and then left Apple for Ford in 2021. Overall, the total electrification reorganization plan has a budget of between $10 and $20 billion, giving Ford free range in terms of what its capabilities will be moving forward.

One of the most crucial portions of Ford’s new plan is to transition factories that are responsible for manufacturing gas-powered vehicles into EV plants. A sizeable portion of the investment will be set aside for this task and could take up to ten years to complete, sources familiar with the matter told the publication.

“We are executing our Ford Plus plan to transform the company and thrive in this new era of electric and connected vehicles. We would not comment on speculation,” Ford’s Communications Chief, Mark Truby, said.

Recently, Ford committed to a lofty goal of 600,000 deliveries within 22 months. CEO Jim Farley believes Ford can be “one of the first to scale” in terms of legacy car companies. Ford has largely been the most committed legacy company to adopt EVs, launching several highly competitive vehicles in its first few years. F-150 Lightning deliveries are expected to begin in the Spring, and the Mustang Mach-E was the second-best-selling crossover SUV EV in 2021, trailing only the Tesla Model Y.

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Spearheaded by Farley, who recently commented that Ford would not abandon its Rivian investment, the playbook is relatively similar to the one EV leader Tesla used to launch its company from an unlikely success story to the most valuable automaker globally. The Elon Musk-led company used a product roadmap in its early days, primarily described in its Master Plan, to funnel its early projects into essentially fundraising campaigns for cheaper, mass-market vehicles in the future. It is unknown if Ford will use this strategy exactly, but the main goal is to transition its existing plants into EV production sites. Ford reached a market cap of $100 billion. The company’s valuation has increased 269 percent since Farley took office.

Ford doubles its F-150 Lightning production target again to 150k units per year

This is a task that will avoid turning the manufacturing facilities today into the stranded assets of tomorrow. Updating the factories will save Ford time, money, and workforce, as many of its employees will likely be trained to handle electric powertrains. Volkswagen made the same steps at some of its facilities in the past few years and provided on-site training for employees who decided to remain at its factories.

The additional $10 to $20 billion investment will supplement the already $30 billion investment that Farley detailed for Ford earlier. This investment will help Ford accelerate its EV commitment through 2024 and will quadruple initial production guidelines for the F-150 Lightning and triple Mustang Mach-E manufacturing efforts.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla board reveals reasoning for CEO Elon Musk’s new $1 trillion pay package

“Yes, you read that correctly: in 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.”

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(Credit: Tesla)

Tesla’s Board of Directors has proposed a new pay package for company CEO Elon Musk that would result in $1 trillion in stock offerings if he is able to meet several lofty performance targets.

Musk, who has not been meaningfully compensated since 2017, completed his last pay package by delivering billions in shareholder value through a variety of performance-based “tranches,” which were met and resulted in the award of billions in stock.

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

However, Musk was unable to claim this award due to a ruling by the Delaware Chancery Court, which deemed the payout an “unfathomable sum.”

Now, the company is taking steps to ensure Musk gets paid, as the Board feels that it is crucial to retain its CEO, who has been responsible for much of the company’s success.

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This is not a statement to undermine the work of all of Tesla’s terrific employees, but a ship needs to be captained by someone, and Musk has proven he is the right person for the job.

The Board also believes that, based on a statement made by the company in its proxy, various issues will be discussed during the upcoming Shareholder Meeting.

Robyn Denholm and Kathleen Wilson-Thompson recognized Musk’s contributions in a statement, which encouraged shareholders to vote to approve the payout:

“We’re asking you to approve the 2025 CEO Performance Award. In designing the new performance award, we explored numerous alternatives. Ultimately, the new award aims to build upon the success of the 2018 CEO Performance Award framework, which ensure that Elon was only paid for the performance delivered and incentivized to guide Tesla through a period of meteoric growth. The 2025 CEO Performance Award similarly challegnes Elon to again meet a series of even more aspirational goals, including operational milestones focused on reaching Adjusted EBITDA targets (thresholds that are up to 28 times higher than the 2108 CEO Performance Award’s top Adjusted EBITDA milestone) and rolling out new or expanded product offerings (including 1 million Robotaxis in commercial operation and delivery of 1 million AI Bots), all while growing the company’s market capitalization by trillions of dollars.

Yes, you read that correctly: in 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.

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In addition to these unprecedented performance milestones, the 2025 CEO Performance Award also includes innovative structural features, born out of the special committee’s considered analysis and extensive shareholder feedback. These features include supercharged retention (at least seven and a half years and up to 10 years to vest in the full award), structural protections to minimize stock price volatility due to administration of this award and, thereafter, incentives for Elon to participate in the Board’s continued development of a framework for long-term CEO Succession. If Elon achieves all the performance milestones under this principle-based 2025 CEO Performance Award, his leadership will propel Tesla to become the most valuable company in history.”

Musk will have a lot of things to accomplish to receive the 423,743,904 shares, which are divided into 12 tranches.

However, the Board feels he is the right person for the job, and they want him to remain the CEO. This package should ensure that he stays with Tesla, as long as shareholders feel the same way.

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Tesla Robotaxi app download rate demolishes Uber, Waymo all-time highs

After two and a half months of testing with a group of hand-picked Tesla influencers and some media, the company has officially launched Robotaxi rides in both Austin, Texas, and the California Bay Area to the public.

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Credit: @BLKMDL3 | X

Tesla launched its Robotaxi app to the general public yesterday, and the number of downloads is a testament to the platform’s high demand for testing.

After two and a half months of testing with a group of hand-picked Tesla influencers and some media, the company has officially launched Robotaxi rides in both Austin, Texas, and the California Bay Area to the public.

Tesla Robotaxi makes major expansion with official public app launch

Downloading the app is available to iOS users, so if you have an iPhone, you can get it and join the waitlist. Tesla has not yet launched the Robotaxi app for the Android platform, but did hint that it would be coming soon.

The testing phase with the group Tesla selected has gone well. In Austin, the City has only listed one “Safety Concern” with Robotaxi during the testing phase. For the most part, things have gone extremely well, and riders have had good things to say.

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Tesla is still operating with some safeguards in place, such as Safety Monitors and Safety Drivers, but these are precautionary and temporary; CEO Elon Musk has said they should be removed by the end of the year.

Elon Musk says Tesla will take Safety Drivers out of Robotaxi: here’s when

Even still, Tesla Robotaxi is something that many people want to experience, and the app downloads prove it.

The Tesla Robotaxi app was downloaded at a rate that exceeded all rolling 30-day periods of both Uber and Waymo, according to Brett Winton of ARK Invest. Tesla’s Robotaxi’s first day on the App Store exceeded Uber’s by 40 percent and Waymo’s best download day ever by six times:

The surge in downloads is a good indication of how in demand the Robotaxi suite was, as many people within the community had vocalized their requests to try the platform, but Tesla was not ready to expand it beyond its handpicked group.

The expansion of the program will result in more rides, provided Tesla continues to expand its fleet of vehicles. It has already admitted many of those who were initially placed on the waitlist.

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Elon Musk’s xAI expands to Seattle with salaries up to $440,000

The move was announced by the artificial intelligence startup and Elon Musk on social media platform X.

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(Credit: xAI)

Elon Musk’s artificial intelligence startup xAI is opening a new office in Seattle as it accelerates its global expansion. 

The move was announced by the artificial intelligence startup and Elon Musk on social media platform X. xAI is also hiring for its first positions in the new site.

New Seattle office

As could be seen on xAI’s Careers webpage, the Seattle office is currently hiring for three engineering roles. Each of the three technical roles tied to the new site carry salaries ranging from $180,000 to $440,000. 

The new office adds to xAI’s growing presence, which now spans San Francisco, Austin, London, Dublin, New York, and Memphis. The Seattle-based roles focus on video and image generation systems, signaling Musk’s intent to challenge rivals like OpenAI and Meta in generative AI.

Pressures and challenges

Seattle also places xAI within reach of Microsoft’s headquarters in Redmond. Microsoft has emerged as a central player in the AI race through its multibillion-dollar partnership with OpenAI, making xAI’s move into the region notable. The competition for AI specialists has pushed salaries higher across the industry, with filings showing OpenAI staff earning up to $530,000 and Anthropic engineers as much as $690,000 annually, as noted by Insider.

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The startup has also seen some high-profile departures in recent months, including cofounder Igor Babuschkin and general counsel Robert Keele. Still, xAI continues to grow aggressively, and its Grok large language model has been gaining momentum among mainstream users. Work also continues to be underway to further build out the company’s Colossus supercomputer cluster. Reports have also suggested that xAI has moved into San Francisco offices in the Mission District, a site Musk initially leased during OpenAI’s early years.

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