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Ford’s Farley shows Tesla Motors some love
You know the Mahatma Gandhi saying: “First they ignore you, then they ridicule you, then they fight you, and then you win.” We would probably change it to: “At first, they ignore you. Then, they mock you. Finally, they embrace you” And so this past week, James Farley, Ford’s CMO publicly praised Tesla’s technical fluency and distribution models. Thus begins a new chapter in the evolution of electric vehicles, EV.
When Ford shows the way
Others mainstream carmakers follow. You have to give Ford credit for a few things. They were agile enough, with the right amount of vision to lead the way in the late 2008, revitalizing our nation’s dying car industry. I’ve met with Alan Mullaly and heard Ford Jr. on more than one occasion to know that this dynamic duo saved the carmaker. Ford was the first carmaker to reach out to everyone to spread the message. Today, the media sees this company as one of the most open and inclusive, a starch contrast to many others in the industry.
Although we can argue at length as to Ford’s commitment to EVs, the Focus Electric is one of the best EV in its segment. It drives very well, has decent autonomy and performs exactly as you would expect it. In many ways, it is an ideal second EV. Still, many are frustrated Ford isn’t pushing its Focus Electric more. However, Ford’s number one preoccupation until now was to remain solvent and diversify their wide automotive choice. They created what they called Power of Choice by offering cars with various drivetrains, something they did with brio and more or less, according to public demand. Still, what James proclaimed will probably force other carmakers to acknowledge the wild success and brilliant maneuvering of the small California electric vehicle maker, Tesla Motors.
According to Jim Farley on Seeking Alpha, “Tesla’s achievements have produced benefits for the entire automotive industry.”
Tesla’s distribution, sales and service
If you read further into the article, you will pick up on something very interesting. Ford is impressed with the company’s distribution, sales and service. In other words, Ford, a carmaker, which relies on dealership distributions is saying it is impressed with Tesla’s distribution system, or lack, thereof. Ford is saying that Tesla devised of a working and successful business plan around electric cars, something that has stumped almost all car makers.
Almost all carmakers face the same dilemma when it comes to EVs. How to make money on the electric drivetrain when it requires close to no maintenance. Since carmakers enjoy a steady cash flow from planned maintenance and obsolescence strategy, EVs are a serious thorn for their business plans. In short, carmakers make a bundle on spare parts, maintenance and frequent planed failures. Electric vehicle makers don’t have that luxury and need to have a radically different business model in order to survive. Maybe if everyone fully understood this, few would complain about the relatively high price of EVs. You either pay upfront, or down the road — the choice is yours.
Ford has shown a very progressive stance in the past and has been one of the rare carmakers with a vision solid enough to get it going in the middle one of the worst global financial crisis. Mullaly and Ford have been instrumental in maneuvering the company out of the 2008 financial meltdown, and have shown an uncanny ability to appeal to population segments otherwise discarded by other makers. Today, Ford enjoys a good reputation, with better cars, good energy savings and much better quality control. If a mainstream carmaker such as Ford publicly praises a disruptive electric vehicle lifestyle startup in California, such as Tesla Motors, you know things are about to change.
Elon Musk
Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package
The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla.
The Delaware Supreme Court has overturned a lower court ruling, reinstating Elon Musk’s 2018 compensation package originally valued at $56 billion but now worth approximately $139 billion due to Tesla’s soaring stock price.
The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla. Musk quickly celebrated the outcome on X, stating that he felt “vindicated.” He also shared his gratitude to TSLA shareholders.
Delaware Supreme Court makes a decision
In a 49-page ruling Friday, the Delaware Supreme Court reversed Chancellor Kathaleen McCormick’s 2024 decision that voided the 2018 package over alleged board conflicts and inadequate shareholder disclosures. The high court acknowledged varying views on liability but agreed rescission was excessive, stating it “leaves Musk uncompensated for his time and efforts over a period of six years.”
The 2018 plan granted Musk options on about 304 million shares upon hitting aggressive milestones, all of which were achieved ahead of time. Shareholders overwhelmingly approved it initially in 2018 and ratified it once again in 2024 after the Delaware lower court struck it down. The case against Musk’s 2018 pay package was filed by plaintiff Richard Tornetta, who held just nine shares when the compensation plan was approved.
A hard-fought victory
As noted in a Reuters report, Tesla’s win avoids a potential $26 billion earnings hit from replacing the award at current prices. Tesla, now Texas-incorporated, had hedged with interim plans, including a November 2025 shareholder-approved package potentially worth $878 billion tied to Robotaxi and Optimus goals and other extremely aggressive operational milestones.
The saga surrounding Elon Musk’s 2018 pay package ultimately damaged Delaware’s corporate appeal, prompting a number of high-profile firms, such as Dropbox, Roblox, Trade Desk, and Coinbase, to follow Tesla’s exodus out of the state. What added more fuel to the issue was the fact that Tornetta’s legal team, following the lower court’s 2024 decision, demanded a fee request of more than $5.1 billion worth of TSLA stock, which was equal to an hourly rate of over $200,000.
Delaware Supreme Court Elon Musk 2018 Pay Package by Simon Alvarez
News
Tesla Cybercab tests are going on overdrive with production-ready units
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the vehicle being reported across social media this week.
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the autonomous two-seater being reported across social media this week. Based on videos of the vehicle that have been shared online, it appears that Cybercab tests are underway across multiple states.
Recent Cybercab sightings
Reports of Cybercab tests have ramped this week, with a vehicle that looked like a production-ready prototype being spotted at Apple’s Visitor Center in California. The vehicle in this sighting was interesting as it was equipped with a steering wheel. The vehicle also featured some changes to the design of its brake lights.
The Cybercab was also filmed testing at the Fremont factory’s test track, which also seemed to involve a vehicle that looked production-ready. This also seemed to be the case for a Cybercab that was spotted in Austin, Texas, which happened to be undergoing real-world tests. Overall, these sightings suggest that Cybercab testing is fully underway, and the vehicle is really moving towards production.
Production design all but finalized?
Recently, a near-production-ready Cybercab was showcased at Tesla’s Santana Row showroom in San Jose. The vehicle was equipped with frameless windows, dual windshield wipers, powered butterfly door struts, an extended front splitter, an updated lightbar, new wheel covers, and a license plate bracket. Interior updates include redesigned dash/door panels, refined seats with center cupholders, updated carpet, and what appeared to be improved legroom.
There seems to be a pretty good chance that the Cybercab’s design has been all but finalized, at least considering Elon Musk’s comments at the 2025 Annual Shareholder Meeting. During the event, Musk confirmed that the vehicle will enter production around April 2026, and its production targets will be quite ambitious.
News
Tesla gets a win in Sweden as union withdraws potentially “illegal” blockade
As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Swedish union Vision has withdrawn its sympathy blockade against Tesla’s planned service center and showroom in Kalmar. As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Vision’s decision to pull the blockade
Vision announced the blockade in early December, stating that it was targeting the administrative handling of Tesla’s facility permits in Kalmar municipality. The sympathy measure was expected to start Monday, but was formally withdrawn via documents sent to the Mediation Institute and Kalmar Municipality last week.
As noted in a Daggers Arbete report, plans for the strike were ultimately pulled after employer group SKR highlighted potential illegality under the Public Employment Act. Vision stressed its continued backing for the Swedish labor model, though Deputy negotiation manager Oskar Pettersson explained that the Vision union and IF Metall made the decision to cancel the planned strike together.
“We will not continue to challenge the regulations,” Petterson said. “The objection was of a technical nature. We made the assessment together with IF Metall that we were not in a position to challenge the legal assessment of whether we could take this particular action against Tesla. Therefore, we chose to revoke the notice itself.”
The SKR’s warning
Petterson also stated that SKR’s technical objection to the Vision union’s planned anti-Tesla strike framed the protest as an unauthorized act. “It was a legal assessment of the situation. Both for us and for IF Metall, it is important to be clear that we stand for the Swedish model. But we should not continue to challenge the regulations and risk getting judgments that lead nowhere in the application of the regulations,” he said.
Vision ultimately canceled its planned blockade against Tesla on December 9. With Vision’s withdrawal, few obstacles remain for Tesla’s long-planned Kalmar site. A foreign electrical firm completed work this fall, and Tesla’s Careers page currently lists a full-time service manager position based there, signaling an imminent opening.
Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package
Tesla Cybercab tests are going on overdrive with production-ready units
