Investor's Corner
Tesla’s experience in electric cars emphasized anew after Mercedes EQC reveal
Earlier today, Tesla stock was given a Sell rating by Goldman Sachs, citing the arrival of competitors from established automakers. Some of these competitors are dubbed as “Tesla Killers,” such as the Jaguar I-PACE and the Mercedes-Benz EQC. The financial firm’s renewed Sell rating on Tesla appears to have affected the sentiment of some investors, resulting in TSLA stock ending the day down 4.21% at $288.95 per share.
Earlier today, the electric car industry also welcomed its latest vehicle from legacy automaker Mercedes-Benz. At an event in Stockholm, Sweden, Daimler AG Chief Executive Officer Dieter Zetsche unveiled the Mercedes-Benz EQC, an all-electric crossover SUV that symbolizes the company’s commitment to the upcoming electrification of the transport industry.
“There is no alternative to betting on electric cars, and we’re going all in. It is starting right now,” Zetsche said.
Mercedes-Benz tried hard with the EQC, with Zetsche stating that the vehicle will be profitable, and that it would “offer the best package” compared to rivals. The EQC also looks very much like a conventional Merc SUV, with its almost understated lines, its high ground clearance, and its tough stance. The EQC’s basic specs are quite decent, with two electric motors that produce 402 hp and 564 lb-ft of torque. The SUV can accelerate from 0-60 mph in 4.9 seconds and hit a top speed of around 112 mph. That being said, the Mercedes-Benz EQC’s range and production date ultimately prove that it won’t be so easy for legacy automakers to gain EV expertise that is comparable to Tesla’s.
The Mercedes-Benz EQC is equipped with an 80 kWh battery pack, which puts its size between the base Model X’s 75 kWh battery pack and the Jaguar I-PACE’s 90 kWh battery. Despite its generous battery size, the EQC’s estimated range is very conservative at around 200 miles per charge. Charging the vehicle from 10% to 80% is also estimated to take around 40 minutes. The EQC’s apparent lack of range has not gone unnoticed. Alex Roy, a veteran of the auto industry, for one, noted that the EQC’s range was a big “miss” for the established German automaker.
In a way, this could be attributed to Mercedes-Benz’s lack of experience in designing and building all-electric cars. And it’s not just Mercedes-Benz, either. Jaguar’s I-PACE is listed with a 240-mile range, but informal, real-world tests online have noted that the vehicle’s battery consumption is quite high. The same could be true for the EQC. It might have a big enough battery, but it could prove to be the electric equivalent of a gas guzzler.
This is something that Tesla has refined over the years. Elon Musk has opted to develop Tesla’s battery packs and even its software in-house, allowing the company to create vehicles that just work. In terms of range, Tesla’s cars usually come very close to their rated range, in some instances even exceeding it. Even the Model X 75D — one of Tesla’s largest, heaviest offerings — could go as far as 237 miles with a 75 kWh battery. Tesla’s progress in developing and building electric cars ultimately cannot be discounted, as Volkswagen AG, a prominent German automaker, was one of the investors willing to help fund Tesla’s attempted privatization.
Another notable detail from the Mercedes-Benz EQC’s unveiling that validated Tesla’s experience in building electric cars is the German-made SUV’s production timeline. Mercedes expects to start manufacturing the EQC sometime next year, with deliveries beginning in 2020. Compared to Tesla’s hyper-aggressive timetables, Mercedes-Benz’s timeline is very conservative, especially considering that the automaker is looking to build the EQC in some of its existing facilities.
A Tesla Model 3 being assembled.
There is very little doubt that Tesla is the company that ultimately made electric cars desirable, proving to consumers that battery-powered vehicles are actually realistic alternatives to fossil fuel-powered cars. Since starting the production of the Tesla Roadster, the company has gained a lot of experience, a lot of it coming from trial and error. Over the years, Tesla has refined its battery technology, to the point where the company is now attempting to hit a battery pack cost of $100 per kWh. Its 2170 cells that power the Model 3 are also proving to be impressive, with Detroit veteran Sandy Munro praising it as some of the finest batteries he has ever analyzed.
A central part of the Tesla Killer thesis is that competitors from established automakers can easily catch up and overtake the California-based company with vehicles that are far superior in quality and performance. If the range and estimated delivery date of the Mercedes-Benz EQC are any indication, it appears that the arrival of these competitors might be just a little bit too late. After all, by 2020, Tesla is planning to start the production of the next-generation Tesla Roadster, a supercar to end all supercars. The Tesla Model Y, a CUV expected to be even more popular than the Model 3, would likely be in production by then as well.
Watch the Mercedes-Benz EQC’s unveiling in the video below.
Tesla investors are ditching Charles Schwab as their brokerage after the firm said earlier this week that it would vote against CEO Elon Musk’s new compensation package.
Several high-profile Tesla influencers are speaking out against Charles Schwab, saying its decision to vote against the plan that would retain Musk as CEO and give him potentially more voting power if he can achieve the tranches set by the company’s Board of Directors.
The Tesla community recognized that Schwab is one firm that tends to vote against Musk’s compensation plans, as they also voted against the CEO’s 2018 pay package, which was passed by shareholders but then denied by a Delaware Chancery Court.
Schwab’s move was recognized by investors within the Tesla community and now they are speaking out about it:
Hey @CharlesSchwab – I need to speak with someone from Schwab Private Wealth Services this week. Please reach out via email, the mobile app message center, phone, or X DM.
Here’s why this is urgent: At least 6 of your ETF funds (around 7 million $TSLA shares) voted against… https://t.co/uSgPWnfTFc
— Jason DeBolt ⚡️ (@jasondebolt) November 3, 2025
If @CharlesSchwab doesn’t vote for Elon Musk’s 2025 CEO Performance Award plan, I’ll move all my assets to another brokerage. My followers, many of whom also hold assets with Schwab and collectively own at least hundreds of millions in $TSLA, may do the same.
I can’t in good… https://t.co/6iUU6PdzYx
— Sawyer Merritt (@SawyerMerritt) November 3, 2025
ready to help with the @CharlesSchwab exodus
— Gali (@Gfilche) November 3, 2025
At least six of Charles Schwab’s ETFs have voted against Tesla’s Board recommendation to support the compensation plan for Musk. The six ETFs represent around 7 million Tesla $TSLA shares.
Jason DeBolt, an all-in Tesla shareholder, summarized the firm’s decision really well:
“As a custodian of ETF shares, your fiduciary duty is to vote in shareholders’ best interests. For a board that has delivered extraordinary returns, voting against their recommendations doesn’t align with retail investors, Tesla employees, or the leadership we invested to support. If Schwab’s proxy voting policies don’t reflect shareholder interests, my followers and I will move our collective tens of millions in $TSLA shares (or possibly hundreds of millions) to a broker that does, via account transfer as soon as this week.”
Tesla shareholders will vote on Musk’s pay package on Thursday at the Annual Shareholders Meeting in Austin, Texas.
It seems more likely than not that it will pass, but investors have made it clear they want a decisive victory, as it could clear the path for any issues with shareholder lawsuits in the future, as it did with Musk’s past pay package.
Elon Musk
Norway’s $2 trillion sovereign wealth fund votes against Elon Musk’s 2025 performance award
The fund is managed by Norges Bank Investment Management (NBIM), and it holds a 1.14% stake in Tesla valued at about $11.6 billion.
Norway’s $2 trillion sovereign wealth fund has voted against Elon Musk’s 2025 performance award, which will be ultimately decided at Tesla’s upcoming annual shareholder meeting.
The fund is managed by Norges Bank Investment Management (NBIM), and it holds a 1.14% stake in Tesla valued at about $11.6 billion.
NBIM’s opposition
NBIM confirmed it had already cast its vote against Musk’s pay package, citing concerns over its total size, dilution, and lack of mitigation of key person risk, as noted in a CNBC report. The fund acknowledged Musk’s leadership of the EV maker, and it stated that it will continue to seek dialogue with Tesla about its concerns.
“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk- consistent with our views on executive compensation. We will continue to seek constructive dialogue with Tesla on this and other topics,” NBIM noted.
The upcoming Tesla annual shareholder meeting will decide whether Musk should receive his proposed 2025 performance award, which would grant him large stock options over the next decade if Tesla hits several ambitious milestones, such as a market cap of $8.5 trillion. The 2025 performance award will also increase Musk’s stake in Tesla to 25%.
Elon Musk and NBIM
Elon Musk’s proposed 2025 CEO performance award has proven polarizing, with large investors split on whether the executive should be given a pay package that, if fully completed, would make him a trillionaire.
Institutional Shareholder Services and Glass Lewis have recommended that shareholders vote against the deal, and initiatives such as the “Take Back Tesla” campaign have rallied investors to oppose the proposed performance award. On the other hand, other large investors such as ARK Invest and the State Board of Administration of Florida (SBA) have urged shareholders to approve the compensation plan.
Interestingly enough, this is not the first time that Musk and NBIM have found themselves on opposing sides. Last year, NBIM voted against reinstating Musk’s 2018 performance award, which had already been fully accomplished but was rescinded by a Delaware judge.
Later reports shared text messages between Musk and NBIM Chief Executive Nicolai Tangen, who was inviting the CEO to a dinner in Oslo. Musk declined the invitation, writing, “When I ask you for a favor, which I very rarely do, and you decline, then you should not ask me for one until you’ve done something to make amends. Friends are as friends do.”
Investor's Corner
Michael Dell points out practical advantage of Elon Musk’s proposed pay package
As pointed out by the Dell Technologies CEO, Musk will only be rewarded if he delivers extraordinary value to shareholders
Michael Dell has weighed in on Elon Musk’s controversial 2025 CEO Performance Award, offering a grounded perspective amidst the noise surrounding the pay package today.
As pointed out by the Dell Technologies CEO, Musk will only be rewarded if he delivers extraordinary value to shareholders. Musk would quite literally receive no compensation if he fails to achieve his targets.
Dell emphasizes results over rhetoric
Dell shared his thoughts about Musk’s 2025 CEO Performance Award in a post on X.“Vote FOR Elon Musk. The award is only achieved IF he hits exceptionally ambitious market-cap and operational milestones—if he falls short, he gets nothing,” Dell wrote in his post.
“If he succeeds, shareholders will win big through unprecedented value creation, and he will earn added voting rights to continue driving Tesla’s long-term vision.”
Musk replied with a short “Thanks Michael,” acknowledging Dell’s support. Dell’s framing cuts through the debate surrounding Musk’s compensation, as he simply focused on the incentive structure’s risk-reward balance.
Musk’s ambitious pay package
Elon Musk’s 2025 CEO Performance Award requires Tesla’s market capitalization to rise from roughly $1.1 trillion today to $8.5 trillion within a decade. This would make Tesla more valuable than any company in history.
Apart from this, Tesla’s operating profit must also grow from $17 billion to $400 billion annually. Musk must also lead the company to several product-related milestones, such as 20 million cumulative vehicle deliveries, 10 million Full Self-Driving subscriptions, 1 million Tesla Bots, and 1 million operating Robotaxis.
So far, proxy advisors Glass Lewis and ISS have urged shareholders to vote against the plan. Some prominent investors, including ARK Invest CEO Cathie Wood, however, have voiced strong support for the plan. Wood called Musk “the most productive human being on earth,” arguing that his vision and ability to attract talent are central to Tesla’s success.
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