Investor's Corner

Tesla Motors is More Like NASA than GM

Published

11 years ago

February 2, 2015

5, 4, 3, 2, 1, We Have Liftoff

I never get too excited or depressed about Tesla’s stock price. Stock analysts worry, and a lot. I can’t imagine how they ever sleep at night knowing that during those hours they are completely off the influence grid. Because Tesla went public it made a new bed and as a consequence, has at least two major challenges it must constantly consider.

Build a new kind of personal transportation that must compete with a 100+ year old industrial age vertical
Fund itself through a traditional stock market model while not making what that model values as part of their mission

Disclaimer: I own a modest number of Tesla shares and have for years, but it’s not my retirement plan and never will be. For me the primary investment is the Mission of Tesla, which for now means the Model S. I’ve owned one since June 2013.

The idea that someone would have the courage (and smarts) to start a car company from scratch and be able to differentiate it from all other automakers, as well as their products in every way, was extremely attractive to me. Others have tried, Tucker, DeLorean, but they were trying to compete with essentially the same formula. That rarely works out. In this case we have disruption and not the bullying kind which is what we often see in tech sector firms.

Car Guys are Wired that Way

I was nearly born in a car. My mother used to regale me with the story of how she just barely made it to the hospital. Five more minutes and I would have emerged while in the back seat of a 1954 Chevrolet Delray. Growing up I was surrounded by relatives who raced cars, worked on automobile, both personal and commercial, and sold them to the public. I remember sitting in my Uncle’s Chevrolet sales room in Ohio while we were visiting one summer and seeing a sign that read, “A new Chevrolet is sold every minute.” Gasoline and oil ran through my veins and I inhaled more carbon monoxide helping my dad in the garage than was probably good for me. For the record, here’s a list of all the cars my father owned. I think it was all of them. The year column indicates when the car was manufactured, not when he purchased it.

[Image source: ModelScoil.com]

Yes, there’s a very big gap between 1969 and 1982. Completely unexplained. Maybe we both failed to make entries in the diary. Never mind, it’s more fun to call “slacker.” We lost my father to cancer in 1992. He would have been proud to say he preceded his latest car in death by a full year. I frequently imagine what it would be like to pull up in his driveway with my Model S and take him for a ride.

As you can see, my father’s list is heavily weighted toward U.S. carmakers, especially GeneralMotors.The recent stories about how GM covered up defective parts for decades was disturbing to me as someone who rode in, drove and owned them as an adult. The last time I owned a GM car was 1989. I switched because I couldn’t afford to pay the maintenance fees.

Mission Control, We are Go for Launch

When President John F. Kennedy challenged America to “land a man on the moon and return him safely” in 1961, it was the catalyst for a series of missions meticulously planned and executed by NASA. Most had doubts we could do it successfully. The ones who believed worked at NASA. They developed a phased approach with three programs; Mercury, Gemini and Apollo. Mercury set out to successfully orbit the earth, study the ability to operate in space and recover both the astronaut and his craft. Gemini’s role was to study the effects of long term space missions on astronauts, perfect re-entry procedures and give astronauts extended practice time in a weightless environment. Once these were accomplished, the third program could begin. Apollo was about landing a man on the moon and returning him safely. I was enthralled with the space program growing up. I held my breath at every launch, was glued to the television for each mission and wondered what would come next.

Palo Alto, We May Have a Problem

Tesla is on a similar path. They started with the Roadster as a commercial prototype that would tell them lots about the viability of an electric car. From that came the Model S, an amazing form of Personal Transportation that won Motor Trend’s Car of the Year in 2013 and was rated the safest automobile ever built in tests conducted by the National Highway Traffic Safety Administration (NHTSA) in the same year. I view the forthcoming Model X, a SUV version of the Model S, together as a stepping stone to the third stage; the Model III. A smaller, much more affordable car within reach of a large number of U.S. households. Assuming they can progress, the Model E will bring them closer to accomplishing the Tesla mission:

To accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.

The cost of the three NASA programs is hard to pin down, but many sources say that Mercury cost about cost $277 million in 1965 dollars, Gemini cost $1.3 Billion in 1967 dollars and Apollo $20.4 Billion in 1970 dollars. Obviously these number increase greatly when you convert them to today’s dollars. These missions were a stunning achievement and brought innovative technology to the private sector in numerous ways. In other words, we all gained benefit from these programs.

The point of quoting the cost figures is to bring perspective into the discussion. Today’s dollars always appear small when we look back a decade or two. The difference in these programs is that NASA was appropriated the funds from Congress, Tesla must navigate the murky waters of being a public company.

Elon Musk’s release of all of Tesla’s patents was a courageous move. He realizes that no single car company can deliver enough electric vehicles to make a real difference in the planet’s climate. The intellectual property is out there. Others can choose to assist or ignore.

BMW and Chevrolet have purchased, taken apart and reassembled the Model S in their war rooms. Why? Most likely to see how they can defeat Tesla. It’s a competitive game after all, including how Tesla sells its cars. A combined mission here, like the one NASA mounted would be an amazing feat of American collaborative engineering on a level never before achieved, this time on ground vehicles. Automakers coming together, including Tesla, could bring about a change much faster than we could even imagine. I know I’m describing a fantasy in the world of stocks and profits.

Can Tesla really do it? Well, they landed the real estate for the Gigafactory. A great start. I believe it can be done and am pulling for them to succeed. Actually more than pulling for them. I drive the car and and am an ambassador for the brand everyday. I wish them success, not just to disrupt, but to innovate on a grand scale. To change history. A chance like that doesn’t come along all that often.

Image Credits: NASA, Tesla Motors, ModelScoil.com

Originally posted on ModelScoil

Elon Musk

‘You chose ambition’: Tesla Chair hails shareholders for backing Elon Musk’s vision

Denholm stated that the vote highlighted TSLA investors’ continued confidence in both Musk’s leadership and Tesla’s vision for an autonomous, AI-driven future.

Published

1 day ago

November 11, 2025

Simon Alvarez

(Credit: Tesla)

Tesla Chair Robyn Denholm has issued a letter to shareholders celebrating what she described as “overwhelming support” at this year’s Annual Meeting, framing the approval of Elon Musk’s trillion-dollar pay plan as a defining moment in Tesla’s mission.

Denholm stated that the vote highlighted TSLA investors’ continued confidence in both Musk’s leadership and Tesla’s vision for an autonomous, AI-driven future.

Denholm hails shareholder confidence

In her letter, which was posted by the electric vehicle maker on X through Tesla’s official handle, Denholm thanked investors for backing Proposals One, Three, and Four, items she said reaffirm Tesla’s “Master Plan Part IV” and its broader mission to accelerate sustainable prosperity. She characterized the shareholder vote as “a vote of confidence in our visionary leader, Elon,” crediting Musk with transforming Tesla into one of the most valuable companies in history.

“In a year when many tried to sow doubt and negativity, you chose a better future,” Denholm wrote. “You chose ambition. You chose to see what is possible. You chose to back the people who have been in the room since the earliest days, fighting for the mission that first brought us all together—a better world for humanity,” she wrote in her letter.

Her comments framed Musk’s pay package approval not only as a governance milestone but as a symbolic endorsement of Tesla’s long-term trajectory across autonomy, AI, and energy innovation.

A letter from Robyn Denholm

–––

Dear Fellow Shareholders,

On behalf of the entire Tesla Board, I want to extend our deepest gratitude for the overwhelming support you showed at this year’s Annual Meeting.

In particular, your resounding approval of Proposals One, Three and…— Tesla (@Tesla) November 10, 2025

“A whole new book” of innovation

Denholm highlighted Tesla’s push toward autonomy as the company’s next major growth phase, citing the Robotaxi program and Optimus humanoid robot as examples of bringing artificial intelligence “into the physical world.” She described this period as potentially “the largest value-creation event in Tesla’s history, and quite possibly in the history of humanity.”

The letter reaffirmed the board’s commitment to direct engagement with shareholders through Tesla’s online platform and live events. Denholm emphasized that feedback from investors “informs our strategy and strengthens us” as Tesla prepares for new technology rollouts and expanded AI capabilities.

“You, our shareholders, have given us the mandate and the runway to execute. We are humbled, and rest assured that we do not take that responsibility lightly… Thank you for believing in Tesla. Thank you for standing with us. We look forward to years of bold leadership and pioneering innovation, fueled by our commitment to creating a better future for all,” she wrote.

Elon Musk

Twitter co-founder Jack Dorsey endorses Elon Musk Tesla pay package

Dorsey framed the pay package as an engineering and governance crossroads for Tesla.

Published

6 days ago

November 6, 2025

Simon Alvarez

Twitter co-founder and Square CEO Jack Dorsey has publicly backed Elon Musk’s leadership ahead of Tesla’s pivotal shareholder vote, which is expected to be decided later today at the company’s 2025 annual meeting.

Dorsey framed the pay package as an engineering and governance crossroads for Tesla.

Dorsey’s public nod framed as an engineering defense of Musk

In a post on X, Dorsey weighed in on Tesla’s post about being in a “critical inflection point.” As per the Twitter-co-founder, the vote on Musk’s 2025 performance award is not about compensation. Instead, it’s about ensuring the path for the company’s engineering in the coming years.

“This is not about compensation. it’s about ensuring a principled (and exciting!) engineering approach to the company’s future,” Dorsey wrote on his post, later stating that users of Cash app with TSLA shares would be able to vote for the CEO’s proposed 2025 performance award.

Elon Musk appreciated Dorsey’s endorsement, responding to the Twitter co-founder’s post with a heart emoji. Musk has been pretty thankful for the support for is fellow tech executives, also thanking Michael Dell recently, who also advocated for its proposed 2025 performance award.

❤️— Elon Musk (@elonmusk) November 6, 2025

Musk’s support

While Elon Musk’s 2025 performance award has received opposition from proxy advisors such as Glass Lewis and ISS, it has received quite a lot of support from longtime bulls such as ARK Invest, and, more recently, Schwab Asset Management following calls from TSLA retail shareholders.

“Schwab Asset Management’s approach to voting on proxy matters is thorough and deliberate. We utilize a structured process that focuses on protecting and promoting shareholder value. We apply our own internal guidelines and do not rely on recommendations from Glass Lewis or ISS. In accordance with this process, Schwab Asset Management intends to vote in favor of the 2025 CEO performance award proposal. We firmly believe that supporting this proposal aligns both management and shareholder interests, ensuring the best outcome for all parties involved,” Charles Schwab told Teslarati.

Elon Musk

Tesla Robotaxi and autonomy dreams lean on shareholders: Wedbush

Published

1 week ago

November 5, 2025

Joey Klender

Credit: Tesla Europe & Middle East/X

Tesla’s dreams of developing a Robotaxi suite that utilizes a fully autonomous platform developed by the company’s top-tier talent now lean on shareholders and perhaps the most crucial vote in its history.

That’s what Dan Ives of Wedbush said in a new note to investors on Wednesday. As the Annual Shareholders’ Meeting is now just one day away, investors are down to their final chance to vote for or against Elon Musk’s new compensation plan.

Ives wrote that, while the company has made its intentions clear, wanting to maintain Musk, pay him accordingly, and give him the voting power he has long wanted, ultimately, the responsibility falls on investors.

🚨 A new note from Wedbush’s Dan Ives on Tesla $TSLA:

“A Big Day On Deck Tomorrow for Musk and Tesla; We Expect Pay Package Passes

Tomorrow Tesla will be hosting its annual shareholder meeting with all focus on the Musk pay package on deck. We expect Musk to get overwhelming…

— TESLARATI (@Teslarati) November 5, 2025

As many retail shareholders have pushed for people to vote for Musk’s compensation package, there are a handful of large-scale funds and firms that have decided to go in another direction. Bullish Wall Street firms, Wedbush being one of them, believe it is crucial for Tesla to maintain Musk.

The vote could have major implications on whether Tesla launches an autonomous Robotaxi suite in the near future, Ives says:

“Getting Musk’s pay package approved tomorrow at the highly anticipated meeting will be a big step towards advancing Tesla’s future goals with the autonomous and Robotaxi roadmap ahead.”

While some investors are convinced the company is ready to go in a different direction simply based on Musk’s political involvement over the past year, many investors are under the impression that the development of Tesla’s autonomy suite, as well as its prowess in the EV sector, would fall if Elon were not at the helm.

Tesla’s Board of Directors has already stated that they have received confirmation that Musk’s political involvement would wind down in a timely manner. Moving forward, his focus will not veer from the mission of any of his companies; at least that’s what can be gathered from some of the Board’s communications over the past month.

Musk’s new compensation package is incentivized by performance metrics and will require him to achieve a handful of lofty tranches. He will not get paid unless he drives shareholder value, which is something many skeptics tend to leave out.

Ives continues:

“This new incentive-driven pay package for Musk would also provide an additional 423 million shares of common stock (~12% of shares), which would increase his ownership of Tesla up to ~25% voting power, which we believe was critical to keep Musk at the helm to lead Tesla through the most critical time in the company’s history. We believe this was the smart move by the Board to lay out these incentives/pay package at this key time as the biggest asset for Tesla is Musk…and with the AI Revolution, this is a crucial time for Tesla ahead with autonomous and robotics front and center.”

Wedbush maintained its Outperform rating and $600 price target on shares.