Elon Musk's Threats Worked - TechCrunch Mobility

TechCrunch Mobility: Elon Musk's Pay Package and Tesla's Future

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Recent news confirms Elon Musk’s approval of a $1 trillion compensation package. Extensive coverage of this significant shareholder vote has been provided, including reports from TechCrunch. But what are the implications of this decision?

Power, Control, and Tesla's Trajectory

While the package centers on financial compensation, it fundamentally concerns power and control within Tesla. Musk has consistently emphasized the necessity of maintaining control over the company, even referencing scenarios like a robotic workforce to justify his position.

The potential consequences of denying Musk this control were stark; he indicated a willingness to depart if his authority was challenged. Shareholders were unwilling to contemplate a Tesla operating without Elon Musk’s leadership.

The value of this package is directly linked to Tesla achieving specific operational, profitability, and market capitalization milestones. Each milestone reached will result in the delivery of 35.3 million shares to Musk.

For example, the initial milestone requires a market capitalization of $2 trillion. Currently, Tesla’s market capitalization is approximately $1.5 trillion.

The Disconnect Between Stock Price and Fundamentals

Tesla operates uniquely, where its share price isn’t always correlated with underlying financial performance. It’s common for Tesla’s stock to increase based on Musk’s statements during earnings calls, even if the quarterly results are not exceptional. This likely presents a challenge for competing automotive manufacturers.

Therefore, the product and profit goals tied to this compensation package are particularly noteworthy. These goals encompass delivering 20 million Tesla vehicles, securing 10 million active Full Self-Driving subscriptions, deploying 1 million robots, and operating 1 million robotaxis commercially within the next decade.

A survey regarding these ambitious goals is available at the end of this article.

Announcements from the Shareholder Meeting

Beyond celebrating the approval of his pay package, Musk utilized the shareholder meeting to unveil several forecasts and commitments. He announced the commencement of Cybercab production in April and suggested the potential need for a large-scale semiconductor fabrication facility.

He also postponed the release of the Roadster 2 once again, initially unveiled as a prototype in 2017. The production version is now slated for unveiling on April 1, 2026 – coinciding with April Fools’ Day.

It’s important to note that Master Plan 4, which formed the core of Tesla’s argument for shareholder approval of the $1 trillion package, remains lacking in detailed specifics.

Initial Updates

Several interesting developments are currently in progress, though none are prepared for release at this time.

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Recent Investment Activity

Beta Technologies, a company focused on electric aviation, successfully launched its initial public offering (IPO) despite a government shutdown. This was facilitated by some regulatory flexibility provided by the Securities and Exchange Commission (SEC).

The company debuted on the New York Stock Exchange, securing a substantial $1 billion in funding. While the initial stock performance wasn’t explosive, it avoided the declines seen in some recent IPOs.

Shares were priced at $34, exceeding the anticipated range of $27 to $33. A total of 29.9 million shares were sold, resulting in the $1 billion raise and a valuation of $7.4 billion. The stock concluded its first day at $36, maintaining this level the subsequent day, though it has since settled around $31.

The long-term success of Beta Technologies hinges on the successful commercialization of its aviation technologies. Future performance, including share price, will be closely monitored.

Notable transactions from the past week include…

Archer Aviation secured $650 million through a stock offering, issuing 81.25 million shares. These funds are earmarked to support the $126 million acquisition of Hawthorne Airport, a key location in Los Angeles.

However, investors reacted negatively, causing shares to fall by over 12.6% on Friday. Hawthorne Airport is noteworthy for its proximity to Elon Musk’s facilities, including the Tesla Design Studio and SpaceX, and has hosted several product unveilings, such as the Tesla Semi.

Evotrex, a startup innovating in the RV travel trailer market with a hybrid gas-electric design, has emerged from stealth mode. The company has raised $16 million in seed funding led by Anker, alongside investments from Unity Ventures, Kylinhall Partners, and Vision Plus Capital – all Chinese early-stage venture firms.

TVS Motor, a prominent Indian motorcycle manufacturer, divested its entire ownership in ride-hailing service Rapido. The sale, valued at ₹2.88 billion (approximately $32 million), was completed with Accel and MIH Investments, the investment arm of Prosus.

Lucid Motors received a significant financial boost from its primary investor, Saudi Arabia’s sovereign wealth fund. The loan agreement’s limit was increased from $750 million to approximately $2 billion, providing the company with financial stability through 2027.

Rivian released its third-quarter earnings report this week, alongside an intriguing development. The company has established a new venture, Mind Robotics, focused on industrial AI and robotics. This follows the earlier spin-off of a micromobility company, Also. Mind Robotics has already secured $115 million in seed funding, led by Eclipse, with Jiten Behl, an Eclipse partner and former Rivian employee, also being a key investor in Also.

Industry Updates and Key Developments

Bryant Walker Smith, a professor at the University of South Carolina specializing in law and engineering, has consistently served as a key resource for governments and safety bodies concerning automated driving technologies – particularly regarding public communication strategies. He recently published a noteworthy paper titled “Self-Driving” Means Self-Driving, which warrants attention.

Automaker News

Ford leadership is currently evaluating the potential discontinuation of the F-150 Lightning electric truck.

Executive Shifts at Lucid

Lucid is undergoing significant changes in its executive structure while actively seeking a permanent Chief Executive Officer. Eric Bach, the company’s chief engineer, is departing after more than ten years of service. Additionally, Jeri Ford, formerly the VP of Quality, is retiring.

Further changes include the departure of James Hawkins, who held the position of VP of Engineering. In response, Emad Dlala, currently Senior Vice President of Powertrain, will assume responsibility for all “Engineering and Digital” operations.

Luminar Faces Challenges

Luminar is experiencing financial difficulties, recently receiving an eviction notice for one of its offices located in Orlando, Florida.

Lyft Reports Positive Results

Lyft announced a profitable third quarter, reporting earnings of $46.1 million. This represents a substantial improvement compared to the $12.4 million loss reported during the same period last year. Ridership increased by 15% year-over-year, reaching 248.8 million, and revenue grew by 11% to $1.69 billion.

Rivian’s Financial Performance

Rivian released its third-quarter earnings report. While the company continues to operate at a loss, the revenue figures were well-received by investors. Revenue increased by 78% year-over-year, totaling $1.56 billion. However, a significant Q3 loss of $1.17 billion was also reported, a 6% increase from the $1.1 billion loss in the prior year.

Waymo Expansion Plans

Waymo intends to introduce its robotaxi service to Detroit, Las Vegas, and San Diego. This expansion signifies a rapid acceleration of Waymo’s deployment strategy. At TechCrunch Disrupt last month, co-CEO Tekedra Mawakana projected that the company aims to provide 1 million robotaxi trips per week by the end of 2026.

Currently, Waymo is completing over 250,000 trips weekly, as reported in April.

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