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Tesla CEO Elon Musk nears first bonus payday, but it’s really complicated

Tesla CEO Elon Musk presents the Model Y. (Photo: Teslarati)

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Tesla CEO Elon Musk might have another reason to dance the way he did during the recent Gigafactory 3 event in China as he gets closer and closer to a big payday amounting to $346 million.

The Tesla chief does not take home any salary nor any cash bonus but he has options to vest based on the market capitalization and growth milestones of the electric car brand. As Tesla’s stock rose to more than double in the last three months, Musk might soon enjoy a record-breaking payday, according to Reuters.

On Monday, Tesla shares hit a record high and the trend continued on Tuesday closing at $537.92 per share. Tesla is poised to hit a stock market value of $100 billion if the gains continue and if that number is sustained for both a one-month and six-month average period, the company will grant Musk his massive first of 12 tranches of options that will allow him to acquire additional stock. He currently owns around 19 percent of the company or about 34 million shares.

For the next tranches to vest under the 2018 pay package for the Tesla CEO, the market cap of the electric carmaker should go up sustainably by $50 billion increments through the 10-year period set by the company. Musk will earn the full pay package if the market cap of Tesla hits $650 billion and other revenue targets and several profit targets.

For the purpose of comparison, the full pay package of Musk is comparable to Snap Inc. Founder Evan Spiegel’s $638 million pay in 2017 following the social network’s initial public offering. In 2018, CEO Robert Iger of Walt Disney earned stock grants amounting to $149.6 million after the company purchased 21st Century Fox’s film and TV assets.

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As one can see, Elon Musk’s pay package is pretty complicated. It’s really “pay for performance” linked to the company’s and shareholders’ long-term success. This CEO Performance Award structure ensures that the Tesla CEO remains motivated and will execute well to ensure the company will be well on both bottom-line and top-line basis.

So far, it has been quite a journey for Musk who has brought Tesla to a market cap of almost $97 billion today from less than $4 billion seven years ago. Because of this, it’s not a surprise why Tesla naysayers are converted to believers and for other successful entrepreneurs throw words of praises for the Tesla CEO. Tesla critic and CNBC host Jim Cramer, for example, has turned from a non-believer to a full-on bull who says the company has all the ingredients of a winner, and Shark Tank judge and multimillionaire businesswoman Barbara Corcoran said Elon Musk is a “wild man” who can beat the automotive giants.

A curious soul who keeps wondering how Elon Musk, Tesla, electric cars, and clean energy technologies will shape the future, or do we really need to escape to Mars.

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Tesla sends production Cybercab with no steering wheel, pedals to on-road testing

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Credit: Tesla

Tesla confirmed this morning that it has sent the first production units, manufactured with no steering wheel or pedals, to on-road testing in Austin, sharing video of the first rides with no human controls.

The lack of steering wheels and pedals in the Cybercab aligns with Tesla’s self-certification of Robotaxi as Level 4 SAE, a platform it plans to make widespread through internal vehicles and customer-owned cars that will operate and generate revenue for individuals.

The start of these engineering tests is a major signal for Tesla, which plans to bring driverless, wheel-less, and pedal-less Cybercabs to market in the coming months. With production already well underway at Gigafactory Texas, where the Cybercab is built, there is some inclination to believe the first public rides could happen sooner rather than later.

Tesla’s engineering tests will put the Cybercab in real-world scenarios, testing not only the hardware, but more importantly, the software that drives the car around Austin with nobody supervising it within the car.

This is perhaps the biggest part of the internal testing process, especially prior to allowing regular, everyday people to hail the Cybercab for an autonomous ride. These early rides serve as a true benchmark for Tesla: How many rides can it achieve safely? How many miles did it travel consecutively without needing an intervention? What scenarios challenge the Full Self-Driving suite the most?

The proper precautions have already been put into place as well, as Tesla released the First Responders Guide to Cybercab over the weekend, ensuring that emergency services have 24/7 access to Robotaxi Assistance, as well as other boundaries, such as Geofencing features that can be used to redirect autonomous vehicle traffic due to accidents, road closures, construction, or maintenance.

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Cybercab seems genuinely close to being added to the Robotaxi fleet in Austin, but Tesla has prioritized safety throughout this entire process. Therefore, we think it could be months before it truly starts giving rides to the public. People have been frustrated with this, but Robotaxi in Austin has a tremendous safety record so far, so the slow rollout has kept people safe and accidents to a minimum.

The most important thing is that Tesla continues to show consistent progress in the Cybercab’s ramp-up toward fleet addition. A few weeks back, we saw the EPA reward the Cybercab a Certificate of Conformity, allowing it to enter the stream of commerce. Then, we saw Tesla add decals, signaling that it was likely about to start testing it publicly. That has now happened.

The next big move will be the announcement of the first rides, so this Summer should be filled with anticipation.

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Tesla Phone? Not quite, but close: analyst

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elon musk phone
Photo: Boss Hunting.com.au

For years, there have been images and videos across social media platforms that have reminded me of when I was a 15-year-old kid teased by “Xbox 720” videos on YouTube. These videos are of the supposed “Tesla Phone” that Elon Musk was secretly developing in between leading Tesla with its electric cars and SpaceX with its reusable rockets.

Although Musk has put those rumors to bed several times, it was never completely out of the realm that he could get involved in cell phones in some capacity. Think outside the box and more macro-level, though. Instead of reinventing the computer, Musk reinvented connectivity by developing Starlink with SpaceX.

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It could be something similar, TD Cowen analyst Gregory Williams said in a note last week, where he hinted SpaceX could be gathering some steam to acquire T-Mobile.

Williams said it would be the “clear choice” for SpaceX if it decided to go through with a network acquisition. He also suggested AT&T.

The move would be possible through selling more of its own stock, which would help SpaceX raise the money to purchase T-Mobile, which would cost roughly $300 billion. It could be one of the moves SpaceX makes post-IPO in terms of an acquisition: it already acquired Cursor AI for $60 billion.

Other analysts, like Dan Ives of Wedbush, believe SpaceX and Tesla will eventually merge into one anyway, and that conglomeration could come as soon as this year, some have said.

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The implications of SpaceX purchasing T-Mobile are massive. A combined entity would create a truly ubiquitous network: T-Mobile’s terrestrial 5G towers and Starlink’s growing constellation of Direct-to-Cell satellites. This would essentially eliminate dead zones across the U.S. and potentially globally.

SpaceX would instantly become a full-scale facilities-based carrier with satellite differentiation; a huge advantage. This would pressure AT&T and Verizon heavily.

There are also concerns like a potential reduction in long-term competition, and of course, a deal of that size would face intense scrutiny from government agencies.

The strategic fit is compelling due to the existing Starlink–T-Mobile partnership and complementary technologies (space + terrestrial). It could create a dominant integrated communications player. However, the regulatory, financial, and execution hurdles are enormous — this remains highly speculative with no indication SpaceX is actively pursuing it right now.

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Tesla reveals huge Cybercab detail in new guide for First Responders

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Credit: Tesla

Tesla revealed a major new Cybercab detail in a guide it released for First Responders, showing new territory in its beliefs and intentions for the ride-hailing-focused vehicle that entered production in April.

The First Responders Guide is released to give fire departments, paramedics, and other emergency personnel the proper guidance on what to do in the event of an accident, entrapment, or other situation that would require immediate attention.

On one of the pages of the First Responders Guide, Tesla revealed a stark detail about the Cybercab, which could help personnel enter the vehicle more easily in case of an emergency.

Tesla Cybercab has one important piece that AI4 cars might need for FSD

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It shows Tesla has no intention of releasing any Cybercab units that were initially proposed for ride-hailing services for the general public with any manual controls, meaning a steering wheel or pedals:

“A Cybercab equipped with steering wheel, brake pedal, and an acceleration pedal is typically an engineering or test vehicle, and operates at SAE Level 2 autonomy. Cybercab is not typically equipped with a steering wheel or acceleration and brake pedals.”

This is a major development for those who continue to believe Tesla planned to release the Cybercab with any sort of manual controls so that passengers could take over if needed. However, when Tesla started manufacturing production versions of the Cybercab in Giga Texas earlier this year, they were spotted without a steering wheel or pedals.

It essentially confirms the company has no intentions of bringing manual controls to the car’s production versions. Some have argued that the likelihood of Tesla having something

There still are some Cybercab units out there with a steering wheel and pedals, and as Tesla said, these cars are engineering or test vehicles, which have Safety Monitors on board to help the car out of a precarious situation or emergency.

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