

Investor's Corner
Tesla rises amid reports of China’s reduced auto tariffs, Model 3 production milestone
Tesla shares (NASDAQ:TSLA) are up more than 3% in Monday’s intraday trading, amid news of a possible reduction of auto tariffs for vehicles being exported to China, as well as reports pointing to a recent milestone in Model 3 production.
China’s apparent reduction of its 40% tariffs for American-made vehicles was initially announced by US President Donald Trump on Twitter, following his meeting with Chinese President Xi Jinping during the 2018 G20 meeting in Buenos Aires, Argentina this past weekend. On his social media post, Trump noted that China has agreed to the “reduction and removal” of the 40% duties placed on US-made vehicles entering the Asian country today. China has not confirmed or provided details about its deal with the US President so far.
China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.
— Donald J. Trump (@realDonaldTrump) December 3, 2018
Not long after Trump’s Twitter post, US Treasury Secretary Steven Mnuchin echoed the US President’s announcement in a statement to reporters outside the White House. While Mnuchin pointed out that he could not give the specifics of Trump and Xi’s meeting, he nonetheless noted that the “first part” of the deal was to “reduce the surcharge” on vehicles entering the Asian country.
“The first part was to reduce the surcharge, but yes there have been specific discussions on where auto tariffs will come down to, but I’m not prepared to talk about the specifics,” he said.
A reduction of import tariffs bodes well for Tesla, particularly since its two flagship vehicles have experienced massive price hikes since the US-China trade war began. When the additional duties took effect last July, the prices of the Model S and X were increased by 150,000 yuan ($22,647) to 250,000 yuan ($37,744). This resulted vehicles such as a fully loaded Model S P100D costing 1.47 million yuan ($221,937) in China — far higher than the electric car’s $147,000 price in the United States.
The US-China trade war has challenged Tesla’s operations in the country, as noted by the electric car maker in its third-quarter vehicle production and deliveries report. Late last month, Tesla even rolled out a program that reduced the prices of its vehicles by 12 to 26%, by “absorbing” a significant part of the 40% import tariff placed on its vehicles. Tesla noted that the program was aimed at making the Model S, X, and 3 more affordable for its Chinese customers.
Apart from a possible end to China’s steep 40% tariffs, a leaked email reportedly sent by Elon Musk also pointed to a recent milestone in Model 3 production. In his message, Musk noted that some teams have achieved a production level of 1,000 Model 3 per day. Musk also reportedly called on Tesla employees to help the company achieve a steady output of 1,000 Model 3 per day while maintaining quality.
“If you are able to help in any way with getting Model 3 production to a steady 1000 per day at excellent quality, everyone at the company should please consider this their top priority. Body production currently appears to be our limiting factor, so it needs the most support right now. Please focus on simplification and reducing cycle time first and then uptime,” the leaked email read.
A production rate of 7,000 Model 3 per week would be yet another breakthrough for the electric car maker, particularly as the company prepares to manufacture the $35,000 base variant of the electric sedan. The base Model 3 could prove to be Tesla’s most disruptive vehicle to date, particularly since it is priced competitively against some of the most popular sedans in the market such as the Toyota Camry.
As of writing, Tesla is trading +3.18% at $361.62 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Elon Musk
Tesla executes ‘a must’ with Musk as race to AI supremacy goes on: Wedbush
Dan Ives of Wedbush says Tesla made the right move getting Elon Musk his pay package.

Tesla (NASDAQ: TSLA) executed what Wedbush’s Dan Ives called “a must” this morning as it finalized a new pay package for its CEO Elon Musk.
The move helped give Musk his first meaningful compensation at Tesla since 2017, when the company offered a pay package that was based on performance and proven growth. That package was approved by shareholders on two separate occasions, but was denied to Musk both times by the Delaware Chancery Court.
On Monday, Tesla announced on X that it had created a new package that would give 96 million shares of restricted stock to Musk to compensate him for the “immense value generated for Tesla and all our shareholders.”
🚨 BREAKING: Tesla has announced that its Board has unanimously approved a recommendation from the Special Committee of the Board to grant Elon an award of restricted stock equal to approximately one-third of the compensation he earned under the 2018 CEO Performance Award.
The… https://t.co/g7RKrTymDL pic.twitter.com/dnvkILlz6H
— TESLARATI (@Teslarati) August 4, 2025
The details of the pay package are designed to retain Musk, who has voiced some concerns about his control of Tesla, as “activist shareholders” have used lawsuits to disrupt the previously approved package.
You can read all the details of it here:
Tesla rewards CEO Elon Musk with massive, restricted stock package
Ives says Musk’s retention is ‘a must’
Ives said in a note to investors on Monday that with the raging AI talent war that Tesla made a smart move by doing what it could to retain Musk.
He wrote:
“With the AI talent war now fully underway across Big Tech, we believe this was a strategic move to keep TSLA’s top asset, Musk, would stay focused at the company with his priority being to bolster the company’s growth strategy over the coming years. With this interim award increasing Musk’s voting rights upon this grant, which Musk honed in on and mentioned was increasingly important to incentivize him to stay focused on the matters at hand, this was a strategic move by the Board to solidify Musk as CEO of Tesla over the coming years with this framework for Musk’s pay package and greater voting control removing a major overhang on the story.”
He went on to say:
“While the groundwork is now in place for the next few years, it will be critical for the Tesla Board of Directors to get this long-term compensation strategy in place prior to the company’s November 6th shareholder meeting which would address the elephant in the room and remove a significant overhang on the stock.”
Wedbush maintained its Outperform rating and its $500 price target on the stock.
Elon Musk
Tesla rewards CEO Elon Musk with massive, restricted stock package
Tesla announced a new pay package for Elon Musk that is restricted and will award him nearly $30 billion for contributions to the company.

Tesla has rewarded CEO Elon Musk with a massive, restricted stock package that equates to about $29 billion in shares in an effort to retain him as the head of the company.
It is also a package that aims to reward Musk for leading numerous Tesla projects that have brought billions in value for shareholders over the past seven years. After his 2018 pay package was rejected by a Delaware Chancery Court, Musk started to question his future at the company.
This move, performed by a Special Committee of the Tesla Board, should retain him for several years.
🚨 BREAKING: Tesla has announced that its Board has unanimously approved a recommendation from the Special Committee of the Board to grant Elon an award of restricted stock equal to approximately one-third of the compensation he earned under the 2018 CEO Performance Award.
The… https://t.co/g7RKrTymDL pic.twitter.com/dnvkILlz6H
— TESLARATI (@Teslarati) August 4, 2025
On Monday morning, Tesla shared on X that it had approved a recommendation from a Special Committee comprised of Board Chair Robyn Denholm and fellow board member Kathleen Wilson-Thompson. It aimed to compensate Musk for his “extraordinary work” and reward him after not receiving “meaningful compensation” for the last eight years.
The post stated that “Tesla is committed to honoring its promises in the 2018 CEO Performance Award and intends to compensate its CEO for his future services commensurate with his contributions to our company and shareholders, we have recommended this award as a first step, ‘good faith’ payment to Elon.”
The award includes the following:
- 96 million restricted shares of stock, subject to Elon paying a purchase price upon meeting a two-year vesting term, to be delivered after receipt of antitrust regulatory approval
- The purchase price will be equal to the split-adjusted exercise price of the stock options awarded to Elon under the 2018 CEO Performance Award ($23.34 per share)
- A requirement that Elon serve continuously in a senior leadership role at Tesla during the two-year vesting term
- A pledging allowance to cover tax payments or the purchase price
- A mandatory holding period of five years from the grant date, except to cover tax payments or the purchase price (with any sales for such purposes to be conducted through an orderly disposition in coordination with Tesla); and
- If the Delaware courts fully reinstate the 2018 CEO Performance Award, this interim award will be forfeited or returned or a portion of the 2018 CEO Performance Award will be forfeited. To put it simply, there cannot be any “double dip.” Elon will not be able to keep this new award in addition to the options he will be awarded under the 2018 CEO Performance Award, should the courts rule in our favor
The board added:
“The Special Committee believes now is the right time to take decisive action to recognize the extraordinary value that Elon created for Tesla shareholders. As such, the Board (with Elon and Kimbal Musk recusing themselves) has unanimously approved a recommendation from the Special Committee of the Board to grant Elon an award of restricted stock equal to approximately one-third of the compensation he earned under the 2018 CEO Performance Award.”
Musk and his brother, Kimbal, are both members of the Tesla board. However, both Musk brothers recused themselves from any voting on this pay package.
The move comes as Musk has hinted on several occasions that he is concerned about his control of the company. His current stake in Tesla stands at about 12.8 percent. He has said a few times he would be more comfortable with a 25 percent stake to protect himself against “activist shareholders.”
He commented on it during the Q2 Earnings Call in late July:
“That is a major concern for me, as I’ve mentioned in the past. I hope that is addressed at the upcoming shareholders’ meeting. But, yeah, it is a big deal. I want to find that I’ve got so little control that I can easily be ousted by activist shareholders after having built this army of humanoid robots. I think my control over Tesla, Inc. should be enough to ensure that it goes in a good direction, but not so much control that I can’t be thrown out if I go crazy.”
The pay package should alleviate any concerns that Tesla would lose Musk as its CEO. Retaining him is perhaps the biggest step in ensuring consistent progress is made on several fronts, including AI and Robotics.
Investor's Corner
Tesla tailwinds could drive momentum-filled finish to 2025: analyst
Tesla is heading toward some momentum to finish out the year, one Wall Street firm believes.

Tesla has some tailwinds that could drive it toward a momentum-filled finish to the year, one Wall Street analyst is predicting.
The tailwinds are joined by some minor risks that have impacted the broader electric vehicle market, but overall, this firm believes Tesla has many catalysts moving forward.
Emmanuel Rosner of Wolfe Research believes that Tesla has plenty of things that could drive the stock upward as we approach the end of the year. With Q3 well underway, Tesla has about five months of catalysts to rely on to erase the roughly 18 percent drop in stock price it has so far this year.
At first glance, it is easy to see the things that would have investors bullish on Tesla for the rest of 2025 and even beyond. Initially, the Robotaxi launch and expansion, which spread to Northern California last night, provide potentially huge tailwinds for the company moving forward.
Along with that, and slightly related, are the advancements in Full Self-Driving that the company has made over the past few months.
This includes the potential launch of the FSD suite in regions like Europe and Australia, where the company believes it will make some progress on regulatory approval in the coming months.
Finally, Wolfe says the company’s Optimus project, which is expected to enter scale production sometime next year, is the third catalyst for Tesla moving forward.
With these three projects in motion, Tesla truly can begin to work on rebounding from a rough 2025 on the market.
Rosner writes:
“This name trades more around the narrative than the numbers. And net-net, we tactically see an improving narrative from here. Tesla has several catalysts coming up w/r/t FSD and Robotaxi, including an expansion of their AV service into several new U.S. markets (San Francisco, Nevada, Arizona, Florida, etc.). The company plans to unlock hands-free/eyes-off autonomy for FSD owners in select U.S. locations by YE25. Supervised FSD in China and Europe is expected to launch over the next ~12 months. And, Optimus is expected to enter scale production in 2026.”
Tesla is currently trading around $310 at around 3:20 p.m. on the East Coast.
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