Investor's Corner
It’s clear, Tesla needs a COO and it can’t come soon enough
Tesla’s stock price has fallen nearly 24% in the last month, with the majority of the decline occurring this week. The drastic change isn’t really attributable to a single factor. The company is under pressure across the board, from Model 3 production, Solar Roof delays, concerns of a cash crunch, and delays in Autopilot’s Full Self-Driving capability. While there isn’t one solution to solve all of Tesla’s growing pains, hiring a Chief Operating Officer could help bring some operational stability to the company while curbing any overpromises made to customers and investors.
Elon Musk has been the CEO of Tesla for the past 9.5 years, and with a newly approved multi-billion dollar compensation plan, signs point to Musk taking the reins for at least another 10 years. However, Musk isn’t committing solely to Tesla as he’s also the CEO and CTO of SpaceX, CEO of Neuralink, CEO of The Boring Company, and one can argue that he’s also a full-time Twitter persona.
In his other companies outside of Tesla, Musk has a key executive running the business operations. President and COO Gwynne Shotwell joined SpaceX as the 11th employee in 2002 and has turned Musk’s passion for Space into a business with over $12 billion in order contracts.
Although Tesla has nearly six times more employees than SpaceX, the young space company operates efficiently and akin to a well-oiled machine, according to employees working at SpaceX. Yet, at the same time, Tesla has seen high executive turnover, as Musk holds tight control of the company’s day-to-day management.
Tesla’s need for a “Shotwell Equivalent” is more apparent than ever and for these key reasons:
- Model 3 Production: Bloomberg’s Model 3 production tracker shows that they are below 50% of their end of March production rate target. Musk should have never increased production targets on the vehicle and needed to be far more conservative with his estimates.
- Continuous delays with Autopilot technology: After ditching Mobileye’s technology in autopilot systems 21 months ago, Tesla’s development of the technology has slowed significantly. Musk first said that a Tesla would be able to drive coast-to-coast autonomously by the end of 2017, that has now been moved to mid-2018.
- Need to capitalize on Model S and Model X. Tesla has built a high-margin business out of their Model S and Model X vehicles. At current production rates, the company can generate $2.5 billion in free cash flow from those two vehicles alone. Tesla should use strategic marketing to boost demand for the vehicles, allowing the company to bring in more high-margin revenue.
- Acquisition of SolarCity: Tesla’s acquisition of solar installation company, SolarCity, has failed to provide meaningful value to shareholders. From the outside, it appears as though Tesla’s management team doesn’t have the bandwidth or cash to grow the Solar division. Both of Musk’s cousins Peter and Lyndon Rive have left Tesla after the acquisition to “focus on other projects”.
It would be foolish to think that a COO would solve all of the company’s issues, but having a dedicated executive to manage day-to-day operations could certainly help in preventing executive turnover while keeping employees focused on Tesla’s core mission: to accelerate the world’s transition to sustainable energy.
Who could be Tesla’s new Chief Operating Officer?
I’ve prepared a shortlist of executives that could potentially land themselves as Tesla’s first COO.
1. Mike Sievert (COO of T-Mobile US)
While Sievert doesn’t have automotive experience, he does bring strong experience managing a large employee base and has worked in the technology sector for the past 25 years. Sievert joined T-Mobile in late 2012 as CMO and became COO in 2015. Since joining T-Mobile, Sievert has been crucial to the company’s successful turnaround. And to boot, Sievert has experience working with outspoken CEOs who also moonlight as a Twitter personality.
2. Julia Steyn (VP Urban Mobility at General Motors and CEO of Maven)
Steyn joined General Motors in 2012 as VP of Merger and Acquisitions and became the VP of Urban Mobility and CEO of GM’s Maven division in late 2015. She has led the company’s initiative into car-sharing with the Maven division and has played a key role in GM’s moves into autonomous vehicles. Prior to joining GM, Steyn was VP at Alcoa, one of the world’s largest aluminum suppliers. She also spent 7.5 years at Goldman Sachs as VP of the Global Natural Resources Group in the Investment Banking division.
3. Alicia Boler Davis (EVP, Global Manufacturing and Labor Relations, General Motors)
Boler Davis has spent the last 24 years at General Motors in a variety of capacities and became EVP of Global Manufacturing and Labor Relations in 2016. She oversees over 150,000 employees in the manufacturing division of GM across 150 different facilities. Prior to her current role, she was SVP of Global Connected Customer Experience where she played a role, like Julia Steyn, in GM’s expansion into car-sharing and autonomous vehicles. Her extensive engineering and managerial experience at GM could bring more order and stability as the company plans to expand production across the globe.
Obviously, this list isn’t comprehensive but should provide a starting point for potential hires. Who do you think should be hired as the first Chief Operating Officer at Tesla?
Investor's Corner
Tesla opens the Q&A for its biggest earnings call yet
Tesla opens its Q3 earnings Q&A, and Cybercab, Robotaxi, Optimus and regulators loom over October 21.
Tesla has opened its shareholder question portal for the Q3 2026 earnings call, with the Say Q&A page already listing questions. Investors have until 4:00 p.m. EDT on October 20 to submit and vote on what management should answer.
The call is set for Wednesday, October 21. Tesla will post results after the market closes, with a live webcast at 4:30 p.m. CT, or 5:30 p.m. ET, through its investor relations site.
Say ranks questions by the number of shares behind the votes, which gives institutional holders extra weight over the retail crowd.
Ahead of Q2, retail investors asked why Robotaxi growth had stalled, when Cybercab would start customer rides, and where the Optimus Gen 3 ramp stood, while an institutional holder asked how Tesla and SpaceX would split Terafab duties. Cybercab has since answered one of those. Tesla said last week it has 300 plus Cybercabs serving Austin, up eightfold in 30 days, with Dallas named as the next city. The questions now are likely to move from when to how fast.
There is also a regulatory question hanging over the call. NHTSA has demanded sworn answers on how the pedal free Cybercab was certified against federal safety standards, with responses due October 30, nine days after the call. Whether an analyst raises it live is unknown, but it is the kind of exposure that tends to find its way into a Q&A.
The numbers will not be the main draw. Tesla already reported 486,532 deliveries and 13.7 GWh of storage for the quarter. Consensus sits around 43 to 45 cents per share on roughly $27.8 billion in revenue, according to Zacks, after a Q2 report that missed on EPS. Goldman Sachs, which holds a Neutral rating and a $360 target, argues the outlook for Robotaxi, FSD and Optimus will matter more to the stock than the quarter itself.
The call also lands six days after the rescheduled Roadster event, which Tesla will stream on X on Thursday, October 15, at 7:55 p.m. CT. If the Roadster shows up with a production date or a SpaceX thruster package, expect it to climb the voting list before the deadline.
Elon Musk
FAA kicks off review of SpaceX’s bid to fly Starship nearly every day
FAA is reviewing SpaceX’s plan for 456 Starship launches a year, up from 25 today.
The FAA said Tuesday that it will prepare an environmental impact statement on SpaceX’s proposal to run as many as 456 Starship launches and 912 landings a year from Starbase, Texas. SpaceX is currently authorized for 25 launches and 50 landings annually, which makes the request roughly 18 times the existing ceiling. The notice of intent is set to publish in the Federal Register on Wednesday.
The plan comes in two phases. Phase 1 would allow up to 100 launches and 200 landings a year, on any day and at any hour. Phase 2, which the FAA says could arrive within several years, would raise the limit to the full 456 launches, still at any hour but only on weekdays. The agency noted that 912 landings is the upper limit for the Texas facility no matter where a given mission begins, and that Starship and Super Heavy could come down at the launch site or in the Gulf and open ocean.
A draft statement will be released for public comment at a later date, and the FAA has not said when. According to the Federal Registar, written comments are due November 30 on regulations.gov under docket FAA-2026-12808, with in person scoping meetings on November 17 in Brownsville and November 19 in Port Isabel, plus a virtual session on November 18. The review will weigh air quality, wildlife, coastal resources, water, noise, and aviation, and the FAA said any increase beyond this proposal would need its own separate review.
The numbers look large next to what Starbase has actually done. Starship has flown three times from Texas this year, including Flight 14 on September 28, the first orbital flight, which deployed 26 Starlink V3 satellites. Bloomberg reported that Starbase has never launched more than five times in a calendar year. The current cap of 25 comes from an FAA approval in May 2025. In February, the agency also approved up to 44 Starship launches a year from Launch Complex 39A in Florida, so Phase 1 in Texas alone would more than double that allowance.
Musk has said Starship could eventually fly more than once per hour within less than a decade, per Bloomberg. The nearer term target is Flight 15. Musk said on October 10 that it is hopefully four to six weeks away and will try to catch the ship with the tower, as Teslarati covered. That flight still runs under the existing 25 launch limit, and so would every Starbase launch for as long as the new review takes.
As of mid morning Pacific time on Tuesday, SpaceX had not posted about the filing on its own account.
Investor's Corner
Elon Musk drops a Thanksgiving hint about Starship’s biggest test yet
Elon Musk says Starship Flight 15 will try to catch the ship itself, a first.
Elon Musk says SpaceX’s next Starship flight will try something nobody has done before, by catching the ship itself. Speaking to roughly 2,000 people at the X Takeover event at Giga Texas on Saturday, Musk said Flight 15 is about four to six weeks away and “probably launches a little bit before Thanksgiving, is my guess.”
That is a slip from earlier reporting, which had pointed to a launch as early as October 19. Musk explained why the date keeps moving. “We’re making a bunch of improvements to the rocket between every flight,” he said, adding that there are often hundreds, sometimes thousands, of small changes. This time the list is short, “but some of them take a fair bit of work and we’ve got to go inside the tank to make some of these changes.”
“We’re going to try to catch the ship, which is a super big deal,” Musk said. “If we do so, that’ll be the first time that there’s been full recovery of an orbital class rocket.” SpaceX has already caught the Super Heavy booster with the tower’s mechanical arms, and has talked about catching the ship since late 2025, but the upper stage has never been caught.
Musk also laid out what comes after. “The next big milestone would be to refly both the booster and the ship,” he said, describing a Flight 16 where “all parts of an orbital rocket are reflown.”
The reason SpaceX wants this comes down to cost and cadence. Every Starship ship so far has ended its flight in the ocean, and SpaceX expects most of those water landings to end in fireballs. A ship that returns to Starbase intact can be inspected and flown again. SpaceX’s IPO filing, says Starship V3 is designed to deliver 100 metric tons to orbit in a fully reusable configuration, that SpaceX aims to cut the cost to reach orbit by 99% or more versus the historical average, and that tower catches should allow “multiple launches per day.”
The payoff goes beyond cheaper launches. The next generation Starlink V3 satellites are too large for Falcon 9 and can only fly on Starship, which can carry up to 60 per flight. Flight 14 on September 28 deployed the first 26 of them after Starship reached orbit despite an early engine shutdown, as Teslarati reported. Musk blamed engine computer software, and said the heat shield “was extremely robust,” which he claimed in August had solved Starship’s biggest challenge.
NASA’s Moon plans depend on the same capability. NASA’s inspector general has described a lander mission that needs a propellant depot in low Earth orbit and more than 10 tanker flights, with SpaceX targeting one tanker launch every six days. That schedule only works if ships and boosters come back fast and fly again. Also, ship to ship propellant transfer has not been attempted yet.
One interesting hurdle yet to be explored is bringing the ship back to the launch site, with reentry over land, which will undoubtedly come with a lot of aviation safety reviews.
