Back in 2018, Elon Musk and Tesla (NASDAQ:TSLA) proposed a compensation plan that was just about as insane as the vehicles that the company produces. Dubbed as one of the most radical CEO payment plans in corporate history, it required Musk to hit a series of market cap and operational targets before he is compensated. If he succeeds, he is paid heartily, making him one of the wealthiest persons in the world by net worth. If he fails, he gets nothing.
“If all that happens over the next ten years is that Tesla’s value grows by 80 or 90%, then my amount of compensation would be zero,” Elon Musk said, describing his payment plan to The New York Times.
A dozen Market cap targets were set, each $50 billion more than the next, starting at $100 billion and so on. Revenue and adjusted profit goals were also established. For each tranche that is achieved, Elon Musk would have the option to purchase about 1% of Tesla stock at $70 per share. Considering that Tesla’s market cap only stood at $59 billion then, the ambitious compensation plan was dubbed as laughably impossible by critics.
“Mr. Musk’s critics — and there are many — are likely to contend that the new compensation plan is just the company’s latest publicity stunt. He has been called a modern-day P.T. Barnum who has created the illusion of success while consistently missing production estimates. The company continues to lose money; at one point last year, it was losing almost a half-million dollars an hour… Jim Chanos, a short-seller who has bet against Tesla’s shares — and has thus far been on the losing side of that trade — has contended that Tesla is worthless,” the NYT wrote then.
That was just over three years ago.
In a securities filing last Friday, Tesla noted that Elon Musk had achieved 6 of his 12 operating targets, and two more were probable soon. A good number of these targets reflected an adjusted version of earnings before interest, taxes, depreciation, and amortization. Two others represented revenue targets. As noted in a report from The Wall Street Journal, Tesla had also reached 11 of Elon Musk’s 12 market cap targets.
This is incredibly impressive considering that Musk’s 10-year performance award is only in its third year. The long-term plan was designed for a 10-year period, and even Musk, in a statement to the NYT, spoke of a decade-long timeframe when he described his performance award. “I actually see the potential for Tesla to become a trillion-dollar company within a 10-year period,” he said.
While his net worth will radically increase due to his Tesla performance award, Musk could not simply sell his shares and disappear. Under the terms of his payment arrangement, even once his TSLA shares vest, Musk would have to hold them for an additional five years before he is even allowed to sell them. And as per Elon Musk’s previous statements, this is something that he does not intend to do.
Musk’s 10-year Tesla performance award is arguably one of the most shareholder-friendly executive payment plans in the market. Other companies typically install outsize packages that often come at the expense of shareholders because executives are compensated even if they underperform. Tesla’s all-or-nothing plan for Elon Musk, on the other hand, greatly benefits shareholders as their holdings will increase in value as Tesla hits its market cap goals. This is great for long-term shareholders who hold the stock, as well as Tesla employees, as they receive TSLA shares when they are employed by the company.
At the end of December, Elon Musk owned about 22.4% of TSLA’s outstanding shares, up from 20.8% a year earlier. Tesla also has a market cap of $683.42 billion as of Friday’s close.
Disclaimer: I am long TSLA.
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Tesla cleared in Canada EV rebate investigation
Tesla has been cleared in an investigation into the company’s staggering number of EV rebate claims in Canada in January.
Canadian officials have cleared Tesla following an investigation into a large number of claims submitted to the country’s electric vehicle (EV) rebates earlier this year.
Transport Canada has ruled that there was no evidence of fraud after Tesla submitted 8,653 EV rebate claims for the country’s Incentives for Zero-Emission Vehicles (iZEV) program, as detailed in a report on Friday from The Globe and Mail. Despite the huge number of claims, Canadian authorities have found that the figure represented vehicles that had been delivered prior to the submission deadline for the program.
According to Transport Minister Chrystia Freeland, the claims “were determined to legitimately represent cars sold before January 12,” which was the final day for OEMs to submit these claims before the government suspended the program.
Upon initial reporting of the Tesla claims submitted in January, it was estimated that they were valued at around $43 million. In March, Freeland and Transport Canada opened the investigation into Tesla, noting that they would be freezing the rebate payments until the claims were found to be valid.
READ MORE ON ELECTRIC VEHICLES: EVs getting cleaner more quickly than expected in Europe: study
Huw Williams, Canadian Automobile Dealers Association Public Affairs Director, accepted the results of the investigation, while also questioning how Tesla knew to submit the claims that weekend, just before the program ran out.
“I think there’s a larger question as to how Tesla knew to run those through on that weekend,” Williams said. “It doesn’t appear to me that we have an investigation into any communication between Transport Canada and Tesla, between officials who may have shared information inappropriately.”
Tesla sales have been down in Canada for the first half of this year, amidst turmoil between the country and the Trump administration’s tariffs. Although Elon Musk has since stepped back from his role with the administration, a number of companies and officials in Canada were calling for a boycott of Tesla’s vehicles earlier this year, due in part to his association with Trump.
News
Tesla Semis to get 18 new Megachargers at this PepsiCo plant
PepsiCo is set to add more Tesla Semi Megachargers, this time at a facility in North Carolina.
Tesla partner PepsiCo is set to build new Semi charging stations at one of its manufacturing sites, as revealed in new permitting plans shared this week.
On Friday, Tesla charging station scout MarcoRP shared plans on X for 18 Semi Megacharging stalls at PepsiCo’s facility in Charlotte, North Carolina, coming as the latest update plans for the company’s increasingly electrified fleet. The stalls are set to be built side by side, along with three Tesla Megapack grid-scale battery systems.
The plans also note the faster charging speeds for the chargers, which can charge the Class 8 Semi at speeds of up to 1MW. Tesla says that the speed can charge the Semi back to roughly 70 percent in around 30 minutes.
You can see the site plans for the PepsiCo North Carolina Megacharger below.
Credit: PepsiCo (via MarcoRPi1 on X)
Credit: PepsiCo (via MarcoRPi1 on X)
READ MORE ON THE TESLA SEMI: Tesla to build Semi Megacharger station in Southern California
PepsiCo’s Tesla Semi fleet, other Megachargers, and initial tests and deliveries
PepsiCo was the first external customer to take delivery of Tesla’s Semis back in 2023, starting with just an initial order of 15. Since then, the company has continued to expand the fleet, recently taking delivery of an additional 50 units in California. The PepsiCo fleet was up to around 86 units as of last year, according to statements from Semi Senior Manager Dan Priestley.
Additionally, the company has similar Megachargers at its facilities in Modesto, Sacramento, and Fresno, California, and Tesla also submitted plans for approval to build 12 new Megacharging stalls in Los Angeles County.
Over the past couple of years, Tesla has also been delivering the electric Class 8 units to a number of other companies for pilot programs, and Priestley shared some results from PepsiCo’s initial Semi tests last year. Notably, the executive spoke with a handful of PepsiCo workers who said they really liked the Semi and wouldn’t plan on going back to diesel trucks.
The company is also nearing completion of a higher-volume Semi plant at its Gigafactory in Nevada, which is expected to eventually have an annual production capacity of 50,000 Semi units.
Tesla executive teases plan to further electrify supply chain
News
Tesla sales soar in Norway with new Model Y leading the charge
Tesla recorded a 54% year-over-year jump in new vehicle registrations in June.
Tesla is seeing strong momentum in Norway, with sales of the new Model Y helping the company maintain dominance in one of the world’s most electric vehicle-friendly markets.
Model Y upgrades and consumer preferences
According to the Norwegian Road Federation (OFV), Tesla recorded a 54% year-over-year jump in new vehicle registrations in June. The Model Y led the charge, posting a 115% increase compared to the same period last year. Tesla Norway’s growth was even more notable in May, with sales surging a whopping 213%, as noted in a CNBC report.
Christina Bu, secretary general of the Norwegian EV Association (NEVA), stated that Tesla’s strong market performance was partly due to the updated Model Y, which is really just a good car, period.
“I think it just has to do with the fact that they deliver a car which has quite a lot of value for money and is what Norwegians need. What Norwegians need, a large luggage space, all wheel drive, and a tow hitch, high ground clearance as well. In addition, quite good digital solutions which people have gotten used to, and also a charging network,” she said.
Tesla in Europe
Tesla’s success in Norway is supported by long-standing government incentives for EV adoption, including exemptions from VAT, road toll discounts, and access to bus lanes. Public and home charging infrastructure is also widely available, making the EV ownership experience in the country very convenient.
Tesla’s performance in Europe is still a mixed bag, with markets like Germany and France still seeing declines in recent months. In areas such as Norway, Spain, and Portugal, however, Tesla’s new car registrations are rising. Spain’s sales rose 61% and Portugal’s sales rose 7% last month. This suggests that regional demand may be stabilizing or rebounding in pockets of Europe.
Tesla cleared in Canada EV rebate investigation
Tesla Semis to get 18 new Megachargers at this PepsiCo plant
Tesla sales soar in Norway with new Model Y leading the charge
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