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Tesla’s end-of-Q3 Model 3 production and delivery ramp looks like an electric car invasion

[Credit: Harbles/Twitter]

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It seems that Tesla board member Kimbal Musk was not kidding when he noted in a CNBC Closing Bell segment that the number of Model 3 which would appear in US roads near the end of September would be shocking to some. After Tesla’s volunteer-boosted delivery weekend — which saw members of the community dedicating some of their time to help out new owners with the features and functions of their electric cars — it is starting to become evident that Q3 2018 could be the quarter when the Model 3 starts its invasion of the US passenger car market.

The Model 3 is Tesla’s most ambitious vehicle. Radically designed from the ground up, the Model 3 was the car that would determine Tesla’s future. Elon Musk himself dubbed the vehicle as a “bet-the-company” situation, where its success or failure would equate to Tesla’s own rise or fall. It took a while for Tesla to hit its stride with Model 3 production, with the company only hitting its then-mythical goal of manufacturing 5,000 of the electric sedans in a week by the end of Q2 2018, six months later than initially expected.

Tesla accelerates its delivery push as Q3 nears its end. [Credit: @Harbles/Twitter]

The Model 3 has started to show its potential in the US passenger car market over the past months. Back in July, sales estimates from auto tracking website GoodCarBadCar suggested that Tesla sold 14,250 Model 3 in the month, making it 7th place in America’s list of best-selling passenger cars. Considering that mainstream, lower-priced vehicles like the Toyota Camry and the Honda Civic were included in GCBC‘s list, the Model 3’s 7th place was more than respectable.

While the Model 3’s sales in July were undoubtedly impressive, its August estimates were even more noteworthy. With an expected 20,450 units sold during August, the Model 3 became the 5th-best-selling passenger car in the US, beating out the Hyundai Elantra and the Nissan Altima. The Model 3 was even listed as the 15th-best-selling vehicle in GCBC‘s overall Top 20 list, which includes titans like the Ford F-150 and the Toyota Rav4.

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It is no secret that Tesla has a tendency to initiate a blitz of deliveries and production before a quarter ends. The company did this in Q1 when it was struggling to build 2,500 Model 3 in a week, and it adopted the same strategy for Q2 when it was trying to manufacture 5,000 of the electric sedans in a seven-day period. This third quarter, Tesla is aiming to produce 50,000-55,000 Model 3 — a record number of vehicles — while attaining profitability. For the company to get a shot at achieving these targets, cars have to be delivered to reservation holders. These efforts, of course, culminated in the recent volunteer-boosted delivery weekend.

As the Tesla community was mobilized in the United States and Canada, it soon became apparent that the company is moving a vast number of vehicles. In the United States, social media posts from Tesla owners shared images of numerous semitrailers transporting electric cars all across the country. Anecdotes from owners who volunteered in the weekend delivery push indicated that numerous vehicles were being moved to service centers, where reservation holders await them. Even a journalist who covers Tesla on a consistent basis shared a clip of a truck full of Model 3 being transported. In Canada, members of the Tesla community have also spotted large lots filled with Model 3, Model S, and Model X. Images taken of centers in British Columbia, Vancouver, Toronto, and Ontario, also depicted a busy, yet very productive volunteer-boosted weekend.

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In a letter to employees, Elon Musk wrote that Tesla is “about to have the most amazing quarter in (its) history, building and delivering more than twice as many cars as (it) did last quarter.” Kimbal Musk, for his part, noted that “it’s really gonna blow people’s minds how many Model 3s are gonna appear in America in just the next couple of weeks.” If Tesla’s busy delivery weekend, as well as the apparent invasion of electric cars being sighted in the US and Canada, are any indication, the company might very well exceed expectations this quarter. It will not even be surprising if the Tesla Model 3 moves up a couple more steps in GoodCarBadCar‘s list of best-selling passenger cars in the US for September.

Tesla has only been in the auto industry for 15 years, and over that time, it has transformed itself from a niche manufacturer that offered one small, quick, two-seater all-electric sports car into a company that is taking on veterans with premium electric cars that force legacy carmakers to come up with compelling EVs of their own. Tesla still has a long way to go before it masters the auto business, and Elon Musk himself would be the first to admit that gross miscalculations, such as the Model X’s overcomplicated design and the Model 3 ramp’s over-reliance on robots, have happened in the past. Despite this, Tesla remains a company that commands a strong following — one that is willing to pay it forward when needed.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Tesla board reveals reasoning for CEO Elon Musk’s new $1 trillion pay package

“Yes, you read that correctly: in 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.”

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tesla
(Credit: Tesla)

Tesla’s Board of Directors has proposed a new pay package for company CEO Elon Musk that would result in $1 trillion in stock offerings if he is able to meet several lofty performance targets.

Musk, who has not been meaningfully compensated since 2017, completed his last pay package by delivering billions in shareholder value through a variety of performance-based “tranches,” which were met and resulted in the award of billions in stock.

Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation

However, Musk was unable to claim this award due to a ruling by the Delaware Chancery Court, which deemed the payout an “unfathomable sum.”

Now, the company is taking steps to ensure Musk gets paid, as the Board feels that it is crucial to retain its CEO, who has been responsible for much of the company’s success.

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This is not a statement to undermine the work of all of Tesla’s terrific employees, but a ship needs to be captained by someone, and Musk has proven he is the right person for the job.

The Board also believes that, based on a statement made by the company in its proxy, various issues will be discussed during the upcoming Shareholder Meeting.

Robyn Denholm and Kathleen Wilson-Thompson recognized Musk’s contributions in a statement, which encouraged shareholders to vote to approve the payout:

“We’re asking you to approve the 2025 CEO Performance Award. In designing the new performance award, we explored numerous alternatives. Ultimately, the new award aims to build upon the success of the 2018 CEO Performance Award framework, which ensure that Elon was only paid for the performance delivered and incentivized to guide Tesla through a period of meteoric growth. The 2025 CEO Performance Award similarly challegnes Elon to again meet a series of even more aspirational goals, including operational milestones focused on reaching Adjusted EBITDA targets (thresholds that are up to 28 times higher than the 2108 CEO Performance Award’s top Adjusted EBITDA milestone) and rolling out new or expanded product offerings (including 1 million Robotaxis in commercial operation and delivery of 1 million AI Bots), all while growing the company’s market capitalization by trillions of dollars.

Yes, you read that correctly: in 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.

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In addition to these unprecedented performance milestones, the 2025 CEO Performance Award also includes innovative structural features, born out of the special committee’s considered analysis and extensive shareholder feedback. These features include supercharged retention (at least seven and a half years and up to 10 years to vest in the full award), structural protections to minimize stock price volatility due to administration of this award and, thereafter, incentives for Elon to participate in the Board’s continued development of a framework for long-term CEO Succession. If Elon achieves all the performance milestones under this principle-based 2025 CEO Performance Award, his leadership will propel Tesla to become the most valuable company in history.”

Musk will have a lot of things to accomplish to receive the 423,743,904 shares, which are divided into 12 tranches.

However, the Board feels he is the right person for the job, and they want him to remain the CEO. This package should ensure that he stays with Tesla, as long as shareholders feel the same way.

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Investor's Corner

Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation

Shareholders are expected to vote on the proposal at the annual meeting on November 6.

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USAFA_Hosts_Elon_Musk_(Image_1_of_17)_(cropped)
U.S. AIR FORCE ACADEMY, Colo. -- Tesla Inc. Chief Executive Officer Elon Musk poses for a photograph with U.S. Air Force Academy Cadets in Mitchell Hall during a tour hosted by Superintendent Lt. Gen. Richard Clark on April 7, 2022. Musk met with Academy senior leadership and delivered remarks to a crowd of cadets and faculty. (U.S. Air Force photo by Justin R. Pacheco)

Tesla’s board has proposed a new compensation package for CEO Elon Musk that could make him the world’s first trillionaire and Tesla the most valuable company in history. 

The 2025 CEO Performance Award, outlined in a securities filing on Friday, would be worth up to $900 billion in Tesla stock (NASDAQ:TSLA) if the automaker achieves a series of aggressive performance and valuation goals, according to the New York Times

Shareholders are expected to vote on the proposal at the annual meeting on November 6.

Tesla is aiming for an insane $8.5 trillion market cap

The package requires Musk to lift Tesla’s market capitalization from about $1.1 trillion today to $8.5 trillion over the next decade. At that level, Tesla would surpass every major public company in existence. Nvidia, currently the world’s most valuable firm, has a market cap of around $4.2 trillion today, as noted in a Motley Fool report. Microsoft and Apple follow at $3.8 and 3.6 trillion each, while Saudi Aramco is valued at around $1.5 trillion.

If Tesla achieves its $8.5 trillion target, it would be worth more than twice Nvidia’s present valuation and nearly eight times its current size. The compensation plan also requires Tesla’s operating profit to grow from $17 billion last year to $400 billion annually.

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Credit: Tesla

Elon Musk’s path to a trillionaire status

Apart from leading Tesla to become the world’s biggest company in history, Musk is also required to hit several product targets for the electric vehicle maker. These include the delivery of 20 million Tesla vehicles cumulatively, 10 million active FSD subscriptions, 1 million Tesla bots delivered, and 1 million Robotaxis in operation.

Tesla board chair Robyn Denholm and director Kathleen Wilson-Thompson said retaining Musk is “fundamental to Tesla achieving these goals and becoming the most valuable company in history.” If successful, the plan would raise Musk’s Tesla stake from 13% to about 25%, further consolidating his control. It would also result in the CEO earning $900 billion in TSLA stock, allowing him to effectvely become a trillionaire. 

The proposal mirrors a 2018 compensation plan that was invalidated in Delaware court earlier this year in the way that it is focused on very aggressive targets and operational milestones. Tesla has since shifted its corporate registration to Texas, where challenges from potential activist shareholders are less of a risk.

Tesla’s SEC filing can be viewed below.

www-sec-gov-Archives-edgar-data-1318605-000110465925087598-tm252289-4_pre14a-htm… by Simon Alvarez

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Investor's Corner

Shareholder group urges Nasdaq probe into Elon Musk’s Tesla 2025 CEO Interim Award

The SOC Investment Group represents pension funds tied to more than two million union members, many of whom hold shares in TSLA.

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Credit: xAI/X

An investment group is urging Nasdaq to investigate Tesla (NASDAQ:TSLA) over its recent $29 billion equity award for CEO Elon Musk. 

The SOC Investment Group, which represents pension funds tied to more than two million union members—many of whom hold shares in TSLA—sent a letter to the exchange citing “serious concerns” that the package sidestepped shareholder approval and violated compensation rules.

Concerns over Tesla’s 2025 CEO Interim Award

In its August 19 letter to Nasdaq enforcement chief Erik Wittman, SOC alleged that Tesla’s board improperly granted Musk a “2025 CEO Interim Award” under the company’s 2019 Equity Incentive Plan. That plan, the group noted, explicitly excluded Musk when it was approved by shareholders. SOC argued that the new equity grant effectively expanded the plan to cover Musk, a material change that should have required a shareholder vote under Nasdaq rules.

The $29 billion package was designed to replace Musk’s overturned $56 billion award from 2018, which the Delaware Chancery Court struck down, prompting Tesla to file an appeal to the Delaware Supreme Court. The interim award contains restrictions: Musk must remain in a leadership role until August 2027, and vested shares cannot be sold until 2030, as per a Yahoo Finance report.

Even so, critics such as SOC have argued that the plan does not have of performance targets, calling it a “fog-the-mirror” award. This means that “If you’re around and have enough breath left in you to fog the mirror, you get them,” stated Brian Dunn, the director of the Institute for Comprehension Studies at Cornell University.

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SOC’s Tesla concerns beyond Elon Musk

SOC’s concerns extend beyond the mechanics of Musk’s pay. The group has long questioned the independence of Tesla’s board, opposing the reelection of directors such as Kimbal Musk and James Murdoch. It has also urged regulators to review Tesla’s governance practices, including past proposals to shrink the board. 

SOC has also joined initiatives calling for Tesla to adopt comprehensive labor rights policies, including noninterference with worker organizing and compliance with global labor standards. The investment group has also been involved in webinars and resolutions highlighting the risks related to Tesla’s approach to unions, as well as labor issues across several countries.

Tesla has not yet publicly responded to SOC’s latest letter, nor to requests for comment.

The SOC’s letter can be viewed below.

Nasdaq+Letter Tsla Socig Final by Simon Alvarez

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