Connect with us

News

Tesla shareholder that has made 11x on its investment votes against Musk pay package

Published

on

It’s official: The California Public Employees’ Retirement System will vote against Tesla CEO’s $56 billion pay package on Thursday at the company’s annual shareholder meeting, despite making 11x on its investment.

CalPERS says it owned nearly 9.2 million shares of Tesla stock as of June 7, and will not support Musk’s pay package ratification for several reasons:

  • The value is approximately $46 billion, accounting for the cost to exercise the options, which is larger than the last four years of Tesla’s aggregate net income of $33.8 billion (2020-2023).
  • The award would be highly dilutive to existing shareowners and reduce their ownership proportion.
  • While the award does have a five-year holding period, it is concentrated in a single individual.
  • Compared with other high-performing companies over the same period, the Tesla option award is nearly 140 times the annual pay opportunity for other high-performing CEOs.
  • The payout rewards short-term growth and not sustained profitability. Tesla’s value has fallen by more than half from its peak in 2021.

Its Global Equities Investment Director, Drew Hambly, also said:

“We do not think a payout based on short-term market exuberance is warranted without sustained performance. Additionally, this deal concentrates power in a single shareholder and was negotiated by board members whose independence from Tesla’s CEO is questionable. For these reasons, CalPERS could not support the deal in 2018 and remains opposed today.”

RELATED: 

Advertisement

Florida Pension Board votes for Elon Musk’s 2018 CEO Performance Award

CalPERS has seen an 11x growth on its investment since 2018, but believes Musk’s pay package would be “excessive compared to executives at peer companies” and would impact shareholders. It also said the pay package isn’t tied to Tesla’s long-term profitability, as it has already been earned and does not incentivize Musk to perform better in the future.

Marcie Frost, CEO of CalPERS, also said:

“This exorbitant compensation package is at odds with CalPERS’ longstanding views on executive pay. The compensation is excessive when compared to executives at peer companies, highly dilutive to shareholders, and isn’t tied to the long-term profitability of Tesla…While we agree that Mr. Musk is entitled to be well compensated for his work, we also believe that a pay package should be commensurate to a company’s performance with reasonable salary caps. These features are absent in the deal as structured.”

Advertisement

Musk said recently that he was disappointed in CalPERS decision to vote against ratifying his pay package.

“CalPERS broke the deal. Shame on them, they have no honor.”

CalPERS is also doing something else, which is related to the decision in the pay package case. It said it filed an objection against the lawyers who represented the shareholder that first challenged Musk’s pay package, as their requested $5.6 billion in fees taken in the form of Tesla stock is “exorbitant and would dilute shareholders’ interest in Tesla.”

The Shareholder Meeting is scheduled for tomorrow.

Advertisement

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Advertisement
Comments

News

Tesla Model X shocks everyone by crushing every other used car in America

The Model X is one of Tesla’s flagship models, the other being the Model S. Earlier this year, Tesla confirmed it would discontinue production of both the Model S and Model X to make way for Optimus robot production at the Fremont Factory in Northern California.

Published

on

Credit: Tesla Asia | X

The Tesla Model X was the fastest-selling used vehicle in the United States in the first quarter of the year, crushing every other used car in America.

iSeeCars data for the first quarter shows that the Model X was the fastest-selling used car, lasting just 25.6 days on the market on average, two days better than that of the second-place Lexus RX 350h. The Cybertruck, Model Y, and Model S, in seventh, ninth, and thirteenth place, respectively, also made the list.

The Model X is one of Tesla’s flagship models, the other being the Model S. Earlier this year, Tesla confirmed it would discontinue production of both the Model S and Model X to make way for Optimus robot production at the Fremont Factory in Northern California.

Tesla brings closure to flagship ‘sentimental’ models, Musk confirms

Advertisement

Bringing closure to these two vehicles signaled the end of the road for the cars that have effectively built Tesla’s reputation for luxury and high-end passenger vehicles.

Relying on the sales of its mass market Model Y and Model 3, as well as leaning on the success of future products like the Cybercab, is the angle Tesla has chosen to take.

Teslas are also performing extremely well as a whole on the resale market. iSeeCars data shows that, “while the average price of a 1- to 5-year-old non-Tesla EV fell 10.3% in Q1 2026 year-over-year, the average price of a used Tesla was essentially flat at 0.1% lower across the same period. Traditional gas car prices dropped 2.8% during this same period.”

Additionally, market share for gas cars has dropped nearly 3 percent since the same quarter last year. Tesla has remained level, while the non-Tesla EV market share has increased 30 percent, mostly due to more models available.

Advertisement

Nevertheless, those non-Tesla EVs have seen their value drop by over 10 percent, while Tesla’s values have remained level.

Executive Analyst Karl Brauer said:

“Used electric vehicles without a Tesla badge have lost more than 10% of their value in the past year. This compares to stable values for Teslas and hybrids, and a modest 2.8% drop for traditional gasoline vehicles.”

Teslas, as well as non-luxury hybrids, are displaying the strongest resistance in the face of faltering demand, the publication says. But the more impressive performance is that of the Model X alone.

Advertisement

Tesla’s decision to stop production of the Model X may have played some part in the vehicle’s pristine performance in Q1. With the car already placed at a premium price point, used models are already more appealing to consumers. Perhaps second-hand versions were more than enough for those who wanted a Model X, and only a Model X.

Continue Reading

Cybertruck

Tesla Cybertruck’s head-scratching trim sold terribly, recall documents reveal

The head-scratching offering was only available for a few months, and evidently, it did not sell very well, which we all suspected. New recall documents on the vehicle from the National Highway Traffic Safety Administration (NHTSA) now reveal just how poorly it sold.

Published

on

Credit: Tesla

After Tesla decided to build a Rear-Wheel-Drive Cybertruck trim back in 2025, which was void of many features and only featured a small discount.

The head-scratching offering was only available for a few months, and evidently, it did not sell very well, which we all suspected. New recall documents on the vehicle from the National Highway Traffic Safety Administration (NHTSA) now reveal just how poorly it sold.

The recall deals with a potentially separating wheel stud and potentially impacts 173 Cybertruck units with the 18-inch steel wheels. The Cybertruck RWD was the only trim level to feature these, and the 173 potentially impacted units represent a portion of the population of pickups. Therefore, it’s not the entire number of RWD Cybertruck sold, but it could show how little interest it gathered.

The NHTSA document states:

Advertisement

“On affected vehicles, higher severity road perturbations and cornering may strain the stud hole in the wheel rotor, causing cracks to form. If cracking propagates with continued use and strain, the wheel stud could eventually separate from the wheel hub.”

Only 5 percent are expected to be impacted, meaning less than 10 units will have the issue if the NHTSA and Tesla estimates are correct. Nevertheless, the true story here is how terribly the RWD Cybertruck sold.

Tesla ended production and stopped offering the RWD Cybertruck to customers last September. For just $10,000 less than the All-Wheel-Drive trim, Tesla offered the RWD Cybertruck with just one motor, textile seats instead of leather, only 7 speakers instead of 15, no Rear Touchscreen, no Powered Tonneau Cover for the truck bed, and no 120v/240v outlets.

Tesla brings closure to head-scratching Cybertruck trim

Advertisement

For just $10,000 more, at $79,990, owners could have received all of those premium features, as well as a more capable All-Wheel-Drive powertrain that featured Adaptive Air Suspension. The discount simply was not worth the sacrifices.

Orders were few and far between, and sources told us that when it was offered, sales were extremely tempered because customers could not see the value in this trim level.

Even Tesla’s most loyal supporters thought the offering was kind of a joke, and the $10,000 extra was simply worth it.

Advertisement

Cybertruck RWD Recall by Joey Klender

Continue Reading

News

Tesla Semi sends clear message to Diesel rivals with latest move

The truck is being built at a dedicated facility in Sparks, Nevada, just next to its Gigafactory Nevada facility.

Published

on

Credit: Tesla

Tesla has officially launched Semi production at what will be a mind-boggling rate of approximately 50,000 units per year.

The truck is being built at a dedicated facility in Sparks, Nevada, just next to its Gigafactory Nevada facility.

The company finally announced on April 29 that the first Tesla Semi truck has rolled off its new high-volume production line at the factory. This marks the transition from limited pilot builds to scaled manufacturing for the Class 8 all-electric heavy-duty truck, nearly nine years after its dramatic 2017 unveiling.

Tesla initially promised high-volume deliveries by 2019–2020, but battery supply constraints and prioritization for passenger vehicles delayed progress. The new 1.7-million-square-foot factory, purpose-built next to Gigafactory Nevada’s 4680 cell production lines, resolves those bottlenecks through deep vertical integration.

The Semi uses Tesla’s structural battery packs with cylindrical 4680 cells manufactured on-site. This integration enables efficient supply, reduced logistics costs, and the potential for high output. The factory is designed for an eventual annual capacity of approximately 50,000 trucks, positioning Tesla to address growing demand in long-haul freight electrification.

Advertisement

Tesla is using a redesigned Cybertruck battery cell to mitigate Semi challenges

Operating economics favor the Semi through dramatically lower fuel and maintenance costs compared to traditional diesel rigs, and companies involved in a pilot program for the Semi with Tesla have shown that.

Electricity is far cheaper than diesel on a per-mile basis, while the electric powertrain features fewer moving parts, reducing service intervals and lifetime expenses. Early deployments with customers like PepsiCo and others have validated these advantages in real-world service.

The Nevada factory’s ramp-up is targeted for full volume output before the end of June 2026, aligning with broader Tesla production goals for 2026. This includes parallel efforts on other new vehicles while expanding the Megacharger infrastructure to support widespread adoption.

Advertisement

By localizing battery and truck production, Tesla gains advantages in cost, quality control, and scalability that many competitors sourcing cells externally lack. The start of high-volume Semi production represents a pivotal step in Tesla’s strategy to electrify heavy transportation, potentially accelerating the shift toward zero-emission freight across North America and beyond.

As output increases, the Semi could reshape long-haul logistics with its combination of performance, efficiency, and sustainability.

Continue Reading