

Investor's Corner
Top 10 questions Tesla investors want answered in the Q3 2022 earnings call
Tesla (NASDAQ:TSLA) is holding its third-quarter earnings call after markets close tomorrow, October 19, 2022. As in previous quarters, Tesla investors have voted for the top questions that they want the company’s executives to answer at the upcoming Q3 2022 earnings call.
As noted by Say, the questions that Tesla investors have submitted for the third quarter earnings call represent inquiries from retail and institutional investors.
Following are the Top 10 questions from Institutional Tesla investors:
- Given the stringent battery content and assembly requirements for consumer tax credit eligibility under the Inflation Reduction Act, can you speak to Tesla’s ability to meet those thresholds in each of 2023, 2024, and 2025 with your existing and planned supply chain?
- What updates can you offer on the backlog and recent order intake trends, especially outside of the US (and specifically in China)?
- Do you still expect 50% annualized growth for the foreseeable future? Is this also true for specifically the Chinese domestic market? Do you expect to need to cut vehicle prices or offer incentives in any market to sustain demand, or has demand remained stable or is even rising?
- Can you tell us more about the product + feature roadmap beyond new models and FSD, and specifically for the interior and powertrain of existing vehicle models?
- We keep hearing of the dire energy crisis in Germany this Winter. What are Tesla’s plans to combat power cuts, and will there be any delays in the ramp-up in production from Giga Berlin because of this?
- How is production planning going for the Cybertruck? What is the initial Phase 1 production target? When can we expect an update on pricing and final design?
- What is the progress of the 4680 cell ramp, and what factors determine whether vehicles get 2170 vs. 4680 cells, and how will that change in the next year?
- Can you share a little bit more on the production ramp targets for the Semi now that production has started?
- Can you talk about how Tesla could adjust if we were to enter a prolonged recession, including new product prioritization, investment flexibility (new factory, factory expansion, service/support infrastructure), productivity/cost measures, and demand stimulation alternatives?
- The progression from Tesla’s first platform with S / X to the second platform with 3 / Y led to a 50% reduction in COGS. When do you see Tesla’s third platform being released, and what level of COGS reduction could you achieve?
The following are the Top 10 questions from Retail Tesla investors.
- You had said previously that FSD Hardware 4 would most likely come first in Cybertruck. Is that still the current plan? Do you expect there to be an upgrade path for Hardware 3 cars to Hardware 4?
- Is a share buyback being considered at the moment?
- How have Tesla’s battery cell production and material sourcing plans evolved with the recent passage of the Inflation Reduction Act that includes production credits for batteries and EVs?
- Do you see deliveries softening in Q4 due to people waiting to take delivery after 1/1/23 when the new tax credits take effect?
- Where’s/When’s the next Gigafactory being built?
- Any new updates on Tesla Solar Roof, new efficiencies, and spread across the US?
- Is Robotaxi/FSD rollout still on track for year-end in the USA?
- The rising cost of FSD is a big factor in people not upgrading to a new version. I have a 2020 Model Y with FSD and won’t upgrade to a 2023 because I can’t afford $15k FSD. I also cannot get $15k resale value for my old one. Will you allow transferring FSD to new cars?
- What are the major obstacles Tesla is facing in achieving a 10K/week run rate at Giga Berlin and Giga Austin?
- What is your forward-looking guidance on demand in the early half of 2023, given the macroeconomic situation we find ourselves in?
Tesla’s Q3 2022 earnings call will be held at 5:30 p.m. Eastern Time on Wednesday, October 19, 2022. A webcast of the Q3 2022 earnings call is linked here.
Disclaimer: I am long TSLA.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
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.”

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.
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.
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.
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.

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.

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
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.

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.
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.
-
News7 days ago
Tesla is overhauling its Full Self-Driving subscription for easier access
-
Elon Musk1 week ago
Elon Musk shares unbelievable Starship Flight 10 landing feat
-
Elon Musk1 week ago
Elon Musk reveals when SpaceX will perform first-ever Starship catch
-
Elon Musk1 week ago
SpaceX Starship Flight 10 was so successful, it’s breaking the anti-Musk narrative
-
Elon Musk3 days ago
Tesla’s next-gen Optimus prototype with Grok revealed
-
News4 days ago
Tesla appears to be mulling a Cyber SUV design
-
News1 week ago
Tesla expands crazy new lease deal for insane savings on used inventory
-
News1 week ago
Tesla talks Semi ramp, Optimus, Robotaxi rollout, FSD with Wall Street firm