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GM goes all-in on EV battery development with new Michigan facility

Architectural rendering of the completed first phase of GM’s Wallace Battery Cell Innovation Center. The Wallace Center will will accelerate new technologies like lithium-metal, silicon and solid-state batteries along with production methods that can quickly be deployed at battery cell manufacturing plants like GM's joint ventures with LG Energy Solution in Lordstown, Ohio, and Spring Hill, Tennessee, along with other undisclosed locations.

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General Motors is going all-in on its electric vehicle investment. The legacy automaker announced today that it would be building a new battery cell research and innovation facility, known as the Wallace Battery Cell Innovation Center, in Warren, Michigan.

“Today, General Motors announced the Wallace Battery Cell Innovation Center, an all-new facility that will significantly expand the company’s battery technology operations and accelerate development and commercialization of longer range, more affordable electric vehicle batteries. The Wallace Center will be located on the campus of GM’s Global Technical Center in Warren, Michigan,” the automaker wrote in a press release.

Architectural rendering of the completed first phase of GM’s Wallace Battery Cell Innovation Center, which will expand the company’s battery technology operations and accelerate development and commercialization of longer range, more affordable electric vehicle (EV) batteries.

On the heels of an announcement last week that hinted toward a primary focus on electric vehicle software development, GM is now expanding its battery manufacturing efforts through a dedicated cell research facility. Battery cells are the most crucial and most expensive part of electric vehicle development. While EV leader Tesla is developing cells in-house and simultaneously buying batteries from suppliers Panasonic, LG Chem, and CATL, other companies that are now expanding EV operations are utilizing their own strategies in an attempt to become the global leader in electric cars.

GM hopes that the Wallace Center will “play a pivotal role in advancing GM’s vision of an all-electric future and help pave the way to widespread adoption of EVs.” Ultimately, the goal is to reduce the cost of electric vehicle cells by at least 60 percent, all hinged on the development of GM’s Ultium battery.

The Wallace Center could be completed as soon as mid-2022, the company said. The facility will be working in conjunction with GM’s other battery development sites, including the Research and Development Chemical and Materials’ Subsystems Lab and the Estes Battery Systems Lab, which is the largest battery validation lab in North America at over 100,000 square feet in size.

The first prototype electric vehicle cells are expected to be built in Q4 2022. “The Wallace Center will significantly ramp up development and production of our next-generation Ultium batteries and our ability to bring next-generation EV batteries to market,” Dogu Parks, GM’s Executive Vice President of Global Product Development, Purchasing and Supply Chain, said. “The addition of the Wallace Center is a massive expansion of our battery development operations and will be a key part of our plan to build cells that will be the basis of more affordable EVs with longer range in the future.”

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It is no secret GM has sparred with battery cell issues in the past. A recent string of recalls from the automaker and the NHTSA has taken tens of thousands of Chevrolet Bolt EVs off the road. These recalls were caused by “the simultaneous presence of two rare manufacturing defects in the same battery cell.” The cells GM used in the Bolt were supplied by LG, and the automaker has confirmed that the cells have reentered production after ensuring that “customers can safely and confidently drive, charge, and park the Chevy Bolt EV and EUV.”

Don’t hesitate to contact us with tips! Email us at tips@teslarati.com, or you can email me directly at joey@teslarati.com.

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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Elon Musk

Tesla analyst: ‘near zero chance’ Elon Musk’s $1T comp package is rejected

“There is a near-zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting.”

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A Tesla analyst says there is “zero chance” that CEO Elon Musk’s new compensation package is rejected, a testament to the loyalty and belief many shareholders and investors have in the frontman.

Tesla investors will vote on November 6 at the annual Shareholder Meeting to approve a new compensation package for Musk, revealed by the company’s Board of Directors earlier this month.

The package, if approved, would give Musk the opportunity to earn $1 trillion in stock, an ownership concentration of over 27 percent (a major request of Musk’s), and a solidified future at the company.

The Tesla Community on X, the social media platform Musk bought in 2023, is overwhelmingly in favor of the pay package, though a handful of skeptics remain.

Nevertheless, the big pulls of this vote are held by proxy firms and other large-scale investors. Two of them, Institutional Shareholder Services (ISS) and Glass Lewis, said they would be voting against Musk’s proposed compensation plan.

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

Today, the State Board of Administration of Florida (SBA) said it would vote in favor of Musk’s newly-proposed pay day, making it the first large-scale shareholder to announce it would support the CEO’s pay.

One analyst said that Musk’s payday is inevitable. Gary Black of the Future Fund said today there is a “near-zero chance” that shareholders will allow Musk’s pay package to be rejected:

There is a near-zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting.”

He added an alternative perspective from Wedbush’s Dan Ives, who said that he had a better chance of starting for the New York Yankees than the comp package not being approved.

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Black’s the Future Fund sold its Tesla holdings earlier this year. He explained that the firm believed the company’s valuation was too disconnected from fundamentals, citing the P/E ratio of 188x and declining earnings estimates.

The firm maintained its $310 price target, and shares were trading at $356.90 that day.

Shares closed at $452.42 today.

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The latest predictions from betting platform Kalshi have shown Musk’s comp package has a 94 percent chance of being approved:

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Investor's Corner

Tesla analysts are expecting big things from the stock

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Credit: @AdanGuajardo/X

Tesla analysts are expecting big things from the stock (NASDAQ: TSLA) after many firms made price target adjustments following the Q3 Earnings Call.

Last Wednesday, Tesla reported earnings with record revenue but missed EPS estimates.

It blew delivery expectations out of the water with its strongest quarter in company history, but Tesla’s future relies on the development of autonomous vehicles, robotics, and AI, which many bullish firms highlight as major strengths.

The earnings call reiterated those points, along with the belief that Tesla CEO Elon Musk should be rewarded with a newly proposed pay package that would enable him to gain $1 trillion in wealth if he comes through on a lengthy list of performance tranches.

Nine Wall Street firms made adjustments to their outlook on Tesla shares in the form of price target increases since last Wednesday’s call, all of which are indications of big expectations for the stock moving forward.

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Here are the nine firms that made moves:

  • Truist – $280 to $406, reiterated Hold rating
  • Roth MKM – $395 to $404, reiterated Buy rating
  • Cantor Fitzgerald – $355 to $510, reiterated Overweight rating
  • Deutsche Bank – $435 to $440, reiterated Buy rating
  • Mizhuo – $450 to $485, reiterated Outperform rating
  • New Street Research – $465 to $520, reiterated Buy rating
  • Evercore ISI – $235 to $300, reiterated In Line rating
  • Freedom Capital Markets – $338 to $406, upgraded to Hold rating
  • China Renaissance – $349 to $380, reiterated Hold rating

The boosts in price target are largely due to Tesla’s future projects, as Roth MKM, Cantor Fitzgerald, Mizuho, New Street Research, and Evercore ISI all explicitly mention Tesla’s autonomy, robotics, and AI potential as the main factors for its price target boosts.

Cantor Fitzgerald raises Tesla PT To $510, citing Cybercab, Semi, and AI momentum

It is no surprise that many firms are adjusting their outlook on Tesla shares considerably in an effort to prepare for the company’s transition to even more of a tech company than a car company.

The issue with many analysts is that they treat the company’s vehicle deliveries as the main indicator of value.

However, Tesla has a robust energy division, which was a major contributor to the company’s strong margins and gross profit in Q3, as well as its prowess in robotics and AI.

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Additionally, the company is seen as a key player in the autonomy field, especially after launching driverless rides on a Robotaxi platform in Austin and expanding a similar program in the Bay Area.

Tesla shares were up over 5 percent at 12:18 p.m. on the East Coast.

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Investor's Corner

Tesla warns Elon Musk could step down if shareholders reject pay plan

Denholm’s letter emphasized Tesla is at a “critical inflection point” as it scales AI-driven projects such as Full Self-Driving (FSD) and Optimus.

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Wcamp9, CC BY 4.0 , via Wikimedia Commons

Tesla Board Chair Robyn Denholm has urged shareholders to approve CEO Elon Musk’s new 2025 Performance Award ahead of the November 6 Annual Meeting, warning that rejecting it could risk losing his leadership. 

In a letter posted on Tesla’s official handle on X, Denholm stated that the company must “foster an environment that motivates Elon to achieve great things,” or risk losing “his time, talent, and vision,” which she described as essential to Tesla’s success.

Retaining Musk amid Tesla’s critical transition

Denholm’s letter emphasized Tesla is at a “critical inflection point” as it scales AI-driven projects such as Full Self-Driving (FSD) and Optimus. She argued that Musk’s leadership remains vital as Tesla pushes toward becoming “the leading provider of autonomous solutions and the most valuable company in the world.” Without a new performance-based plan, Denholm warned, Musk could step away, potentially costing Tesla significant long-term value.

“If we fail to foster an environment that motivates Elon to achieve great things through an equitable pay-for-performance plan, we run the risk that he gives up his executive position, and Tesla may lose his time, talent, and vision, which have been essential to delivering extraordinary shareholder returns,” the Tesla Board Chair stated.

The board’s proposed 2025 Performance Award aligns Musk’s compensation with ambitious targets while extending his commitment for at least 7.5 more years. Denholm stated that the vote is a defining moment for Tesla’s future direction, adding that the plan was designed to keep Musk focused on innovation while maintaining governance discipline. “A vote here is both an endorsement of Elon’s vision and a vote for Tesla’s carefully tailored strategy,” she said.

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Musk’s pay history is rooted in performance

Elon Musk’s pay history with Tesla has long been unconventional. For years, he has declined a regular salary, instead directly tying his earnings to Tesla’s ability to meet ambitious production and market-value goals. His 2018 performance award, approved by shareholders at a time when Tesla had a market cap of just about $59 billion, granted him stock options only when Tesla reached aggressive growth milestones, such as growing the company’s market cap to $650 billion. 

At the time, the milestones included $50 billion additions to Tesla’s market cap, which were considered by many to be unrealistic. Those goals were ultimately met by the electric vehicle maker, but a Delaware court later rescinded the plan in January 2024, calling it an “unfathomable sum.”

Tesla shareholders reaffirmed support for Musk’s pay in 2024, even as legal disputes continued. The board then issued an interim equity package valued around $29 billion while developing a new long-term plan earlier this year. Since then, Tesla’s Board has proposed Musk’s 2025 CEO Performance Award, which could be worth nearly $1 trillion, but only if Musk were to grow Tesla into the world’s most valuable company with a market cap of $8.5 trillion, among other aggressive and ambitious targets.

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