If Elon Musk can increase Tesla's market value 12-fold in the next 10 years, he may be entitled to a maximum of $56 billion in stock awards (likely lower if more shares are sold to the public). This, along with the ballooning of Musk's existing $12 billion share in his company, and his stake in SpaceX and other companies, could help Musk become a Kardashev I trillionaire alongside Jeff Bezos:
A new payment plan for the CEO was approved by Tesla (TSLA) shareholders Wednesday, a spokesperson confirmed. The incentive-based package essentially states that if Musk hits a series of performance milestones between now and January 2028, and he drives his electric car company's market value 12 times higher — taking it from $54 billion to $650 billion — he'll become astronomically rich.
Now, if Musk does drive a 12-fold increase in Tesla's market value, that doesn't necessarily mean the price of a single share in the company will be 12 times larger. The company can do things like issue new stock that could dilute the value of existing shares. But let's assume Musk's Tesla stock would grow at least 10 times more valuable. That would mean just the shares Musk owns today would be worth $120 billion.
Plus, reaching the agreed upon milestones means Musk would get additional stock awards. According to the new compensation plan, Tesla estimates the value of the stock awards to be $2.6 billion, using accounting methods for estimating the cash value of stock options. But if Tesla's market value balloons just as the payment plan hopes, those stock awards could be worth nearly $56 billion, according to a public filing.
Also at Reuters, Fortune, and CNBC.
Related: Tesla Fires Hundreds of Employees
Tesla Burns More Cash, Fails to Meet Production Targets
Tesla Sued Over Alleged Racism; Deliveries Pushed Back; Semi Truck to be Unveiled
Tesla Semi Truck Will Have a 500+ Mile Range
Tesla Delivers on 100 MW Australian Battery Promise
Elon Musk Vows to Build Tesla Pickup Truck 'Right After' Model Y
Woz Likes his Tesla, Doesn't Trust Elon
Tesla Creating Huge Virtual Power Plant
Elon Musk Expects to Do Coast-to-Coast Autonomous Tesla Drive in 3 to 6 Months
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Tesla has fired several hundred of its employees following performance evaluations. Tesla recently conducted the biggest expansion of its workforce in the company's history, and is struggling to increase production of its Model 3 sedan:
Tesla Inc. has fired an undetermined number of employees following a series of performance evaluations after the company significantly boosted its workforce with the purchase of solar panel maker SolarCity Corp.
The departures are part of an annual review, the Palo Alto, California-based company said in an email, without providing a number of people affected. The maker of the Model S this week dismissed between 400 and 700 employees, including engineers, managers and factory workers, the San Jose Mercury News reported on Oct. 13, citing unidentified current and former workers.
"As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures," the company said in the statement. "Tesla is continuing to grow and hire new employees around the world."
The company has more than 2,000 job openings on its careers website.
The dismissals come after Tesla said it built just 260 Model 3 sedans during the third quarter, less than a fifth of its 1,500-unit forecast. The company has offered scant detail about the problems it's having producing the car. The vehicle's entry price starts at $35,000, roughly half the cost of Tesla's least-expensive Model S sedan.
Also at NYT, Reuters, and The Mercury News.
Auto production is hard:
Having racked up its first quarter of burning through more than $1 billion of cash in the three months ending in June, Tesla topped that with $1.4 billion of negative free cash flow in the third quarter. In the past two quarters, therefore, Tesla has burned through more cash than the previous six combined. More importantly, it has burned through roughly four out of every five of the $3.2 billion dollars it has raised since late March through selling new equity and convertible debt and its debut in the high-yield bond market.
Consequently, debt has soared. Even just using debt with recourse to the company, on a net basis it has almost tripled since the start of the year to $3.36 billion.This would matter less if the primary objective of sucking in most of that external funding -- mass production of the Model 3 -- was fast approaching. Instead, it has receded further.
When Musk first talked about production targets for the Model 3 in 2016, they implied Tesla would be producing roughly 3,800 to 7,600 a week in the second half of 2017. By July of this year, Musk was guiding toward production hitting about 5,000 a week by the end of December. I estimated at the time that this implied a second-half average of maybe 1,400 a week.
Now, Musk estimates production might hit 5,000 a week by the end of the first quarter of 2018. As for this year, it might be in "the thousands" by the time New Year's Eve rolls around. He refused to say what the current run rate was. But I would estimate Tesla will be lucky to produce 10,000 Model 3 vehicles in total this year, or an average of 400 a week for the second half -- roughly 5 to 10 percent of the original guidance. As for the earlier target of 10,000 a week in 2018 ...
Also at NYT and MarketWatch.
Previously: Tesla Adds Lots of Certified Pre-Owned Model S Vehicles for Under $40,000 with New Warranty
Time to Bash Tesla Model 3
Tesla Reportedly Teaming Up With AMD for Custom AI Chip
Tesla Fires Hundreds of Employees
Tesla has been sued by an employee for alleged racist harassment and termination for complaining:
Tesla Inc.'s production floor is a "hotbed for racist behavior," an African-American employee claimed in a lawsuit in which he alleged black workers at the electric carmaker suffer severe and pervasive harassment. The employee says he's one of more than 100 African-American Tesla workers affected and is seeking permission from a judge to sue on behalf of the group. He's seeking unspecified general and punitive monetary damages as well as an order for Tesla to implement policies to prevent and correct harassment.
[...] The lawsuit was filed on behalf of Marcus Vaughn, who worked in the Fremont factory from April 23 to Oct. 31. Vaughn alleged that employees and supervisors regularly used the "N word" around him and other black colleagues. Vaughn said he complained in writing to human resources and Musk and was terminated in late October for "not having a positive attitude."
Although customers who have reserved a Tesla Model 3 (at a cost of $1000) have seen their delivery dates pushed back, they apparently remain loyal to the company:
Even as the company led by Elon Musk struggles with manufacturing bottlenecks and pushes back production targets by at least a quarter, many reservation holders aren't budging. Bloomberg News contacted 20 consumers who paid deposits for the Model 3 and none had canceled their orders. Regardless of the concerns raised by slower output and an uncertain future for U.S. electric-car tax credits, Nomura analyst Romit Shah predicts the affinity for Tesla Inc. products will prevail. "We believe there is a real passion for the brand," Shah wrote in a report to clients that reiterated a $500 price target for Tesla shares, the highest on Wall Street. "It is bigger than loyalty because much of the enthusiasm comes from people who have never owned a Tesla. The only comparable we see is the iPhone."
Finally, Elon Musk says that the Tesla Semi Truck will be unveiled during a live webcast at 8 PM on Thursday, and that it will "blow your mind clear out of your skull and into an alternate dimension".
Previously: Elon Musk Says Tesla Pickup and Semi-Trucks Are Coming
Time to Bash Tesla Model 3
Tesla Discussing Autonomous Semi Truck Testing in Nevada
Tesla Fires Hundreds of Employees
Tesla Burns More Cash, Fails to Meet Production Targets
Elon Musk has unveiled the Tesla Semi Truck. It supposedly boasts a single-charge range of over 500 miles, more than what analysts had expected. Tesla could begin producing the vehicles by the end of 2019 (assuming it isn't delayed):
The truck can go from zero to 60 miles per hour in five seconds without a trailer, and in 20 seconds when carrying a maximum load of 80,000 pounds, less than a third of the time required for a diesel truck, he said.
He gave no price for the truck but hinted that it would be costly. "Tesla stuff is expensive," Mr. Musk said, drawing another cheer from the crowd, gathered at an airfield outside of Los Angeles. But he also said the electric truck would be less expensive to operate, in part because it has fewer components that require regular maintenance (no engine, transmission or drive shaft). Instead, the truck, called the Tesla Semi, is powered by a giant battery beneath the cab. It has two rear axles, each outfitted with two electric motors, one for each wheel. Its acceleration and uphill speeds will allow it to cover more distance in less time than diesel trucks, he added.
As a result, Tesla is estimating it will cost $1.26 per mile to operate, compared with $1.51 a mile for a diesel truck. The cost can fall further — to 85 cents a mile, according to Tesla — if groups of trucks travel together in convoys, which reduces wind drag. "This beats rail," Mr. Musk said.
In typical Tesla fashion, the truck is a sharp departure from industry norms. The cabin is spacious enough for a driver and passenger to stand. The driver's seat is in the center of the cab, not on the left side. It is flanked by two laptop-size video screens providing navigation and scheduling data as well as images of blind spots and other areas around the truck. It will be equipped with radar sensors, cameras and processors to enable drivers to use a version of Autopilot, the advanced driver-assistance system featured in Tesla cars such as the Model S and the new Model 3.
Tesla will also produce a new version of the Tesla Roadster that can go from 0-60 in 1.9 seconds.
Also at BBC, TechCrunch, and Firstpost.
Pre-conference coverage at Bloomberg
Previously: Tesla Sued Over Alleged Racism; Deliveries Pushed Back; Semi Truck to be Unveiled
Tesla has switched on "the world's largest battery" in South Australia:
The world's largest lithium ion battery has begun dispensing power into an electricity grid in South Australia. The 100-megawatt battery, built by Tesla, was officially activated on Friday. It had in fact provided some power since Thursday due to demand caused by local hot weather.
South Australia has been crippled by electricity problems in recent times. Tesla boss Elon Musk famously vowed to build the battery within 100 days - a promise that was fulfilled. "This is history in the making," South Australian Premier Jay Weatherill said on Friday. The battery would prevent a repeat of a notorious incident last year where the entire state lost power, Mr Weatherill said.
Mr Musk has described it as three times more powerful than the world's next biggest battery.
The capacity is 129 MWh, and the battery can deliver 100 MW of power.
The record will not stand long. Hyundai is building a 50% more powerful battery system in Ulsan, South Korea.
Also at CNN, The Guardian, and RenewEconomy.
Tesla has been hyping up the prospect of an electric pickup truck for a long time (you're looking at an artist's rendering above), but when can you expect to see it? You might have a clearer idea. As part of a call for feedback, Elon Musk has promised that the pickup will be made "right after" the Model Y crossover arrives between 2019 and 2020. We'd take that commitment with a grain of salt (remember how Tesla expected widescale Model 3 deliveries to start in 2017?), but it at least gives you an idea of what the EV maker is shooting for.
Source: https://www.engadget.com/2017/12/26/elon-musk-promises-to-make-tesla-pickup-truck-after-model-y/
https://www.investopedia.com/news/steve-wozniak-turns-tesla-critic-doesnt-trust-elon-musk/
Steve Wozniak spoke recently at the Nordic Business Forum in Stockholm. A clipping from the end of the short article,
After years of upgrades and new sensors, Woz sees Tesla as a company that has made major promises and delivered well under the bar. "I love that car, but the trouble is Elon Musk is portrayed in a lot of moves with a lack of faith and trust," he said. "What he says, can you really believe in him? Is he just a good salesman, like Jobs, and may not be there [in the end]?"
Wozniak went as far as to suggest that "every other car manufacturer in the world," including Audi and BMW, "are actually ahead of Tesla for self-driving cars." He then praised his Chevy Bolt EV, which he prefers to drive for everyday life.
It doesn't seem that long ago that Woz was calling out Toyota for problems with the cruise control on his Prius, but here's an update from 2010 -- https://gizmodo.com/5462205/steve-wozniak-update-on-his-prius-problems
Submitted via IRC for Bytram
But now instead of being a large centralized battery system using Tesla's Powerpacks, the new project announced today is using Tesla's residential battery system, the Powerwall, to create decentralized energy storage, which basically results in creating a massive virtual power plant.
South Australia Premier Jay Weatherill announced the deal today – the biggest of its kind by far.
The 50,000 homes in the state will be fitted with 5 kW solar arrays and 13.5 kWh Tesla Powerwall 2 battery systems.
It will result in at least 650 MWh of energy storage capacity distributed in the state.
Tesla said in a statement:
"When the South Australian Government invited submissions for innovation in renewables and storage, Tesla's proposal to create a virtual power plant with 250 megawatts of solar energy and 650 megawatt hours of battery storage was successful. A virtual power plant utilises Tesla Powerwall batteries to store energy collectively from thousands of homes with solar panels. At key moments, the virtual power plant could provide as much capacity as a large gas turbine or coal power plant."
It will function much like Tesla's giant Powerpack system, which charges when demand and electricity rates are low and discharges when demand and prices are high.
Aims to install 5 kW solar arrays and 13.5 kWh Tesla Powerwall 2 battery systems in 50,000 homes by 2022.
Source: https://electrek.co/2018/02/04/tesla-powerwall-solar-virtual-power-plant/
Tesla had aimed to do a cross-country U.S. drive in one of its vehicles using fully autonomous driving capabilities by the end of last year. Obviously it didn't make that goal, or you'd have heard about it. Instead, Tesla CEO Elon Musk now says he anticipates being able to make the trip within three months, or six months at the long end.
Specifically, Musk said on an earnings call in response to a question about the autonomous drive that they'd "probably" be able to "do a coast-to-coast drive in three months, six months at the outside." When asked whether this feature would then be immediately available to customers, he did say that it "will be a feature that's available to customers," without commenting directly on timing of availability.
Musk admitted that he'd "missed the mark on that front," regarding the original autonomous drive demonstration, but he qualified that Tesla "could've done the coast-to-coast drive [last year] but that the company "would've had to do too much custom code, effectively gaming it." It would've resulted in a feature that others could have used in their vehicles as well, but only for that exact cross-country route.
Source: TechCrunch
Tesla's stock dropped despite "better than expected" quarterly numbers, probably due to either the company posting its worst quarterly loss ever, or a conference call in which Elon Musk complained about "boring, bonehead questions" and much more:
Tesla Inc. Chief Executive Elon Musk held a long, odd earnings conference call Wednesday in which he insulted analysts, the media, federal regulators and people who died behind the wheel of his cars, and then told anyone concerned about volatility not to invest in his company. Unsurprisingly, volatility ensued, as Tesla shares dropped quickly during an increasingly bizarre call with the very analysts and media whom Musk attacked.
Tesla on Wednesday disclosed the largest quarterly loss in the history of a company known far and wide for losing vast sums of money, with a net loss of almost $785 million. The numbers still managed to beat expectations that have been repeatedly lowered for more than a year, which led Musk to take a victory lap on Twitter after losing more than three quarters of a billion dollars in three months.
(Score: 3, Informative) by Gaaark on Friday March 23 2018, @12:52AM (1 child)
Get a room, already!
Sheeesh.
--- Please remind me if I haven't been civil to you: I'm channeling MDC. ---Gaaark 2.0 ---
(Score: 2) by driverless on Friday March 23 2018, @09:59PM
Huh, that's no big feat. If I manage to increase my company's market value 12,000,000-fold in the next 10 years and get on TV I'll become a Kardashian Level I trillionaire as well.
(Score: 5, Interesting) by bob_super on Friday March 23 2018, @01:11AM (6 children)
Reminder: it requires Tesla to be more valuable than most of the legacy car manufacturers, combined.
The guy has a huge goal to meet, and gets a huge reward if it is met, making all the shareholders very very happy. Isn't that what the Street always says should happen?
Considering the taxes on that money, and the history of the guy in re-investing his cash into new ideas which keep the US ahead, that's not the most shocking outcome for such an insane success.
What's actually novel is that if he screws up, he gets nothing. That would be frowned upon by most.
(Score: 0) by Anonymous Coward on Friday March 23 2018, @01:21AM (2 children)
He'd have to screw up pretty royally to wind up with absolutely nothing. Even if he doesn't hit any of the milestones (each of which will reportedly award him more stock), he already owns ~22% of all the existing shares in the company.
(Score: 5, Insightful) by bob_super on Friday March 23 2018, @01:29AM (1 child)
True.
But tell that to all the executives who already own enough of their company to be at least millionaires if not billionaires, yet get pay packages with 7-figure incomes, guaranteed grants every year, and a golden parachute.
(Score: 0) by Anonymous Coward on Friday March 23 2018, @09:56PM
(Score: 0, Troll) by Anonymous Coward on Friday March 23 2018, @04:01AM
Also keep in mind how little he's contributed to society in order to get that much money.
Most of the businesses aren't profitable, some of them will never be profitable. The only one that's done really well was PayPal and that's more or less a parasite that contributes nothing that can't be had by less evil companies.
(Score: 3, Insightful) by JoeMerchant on Friday March 23 2018, @04:07AM (1 child)
With >$12B in the bank, he can play those games.
And another $56B isn't money at that point, it's power.
🌻🌻 [google.com]
(Score: 2) by HiThere on Friday March 23 2018, @04:42PM
Yes. That's worrying. OTOH, it's less worrying than the folks who have that kind of power right now. At least he's been using it in interesting, and possibly important, ways so far. (I'll admit I'd like to leave out that "possibly", but we need to face the fact that real failure is a possibility.)
Javascript is what you use to allow unknown third parties to run software you have no idea about on your computer.
(Score: 2) by fishybell on Friday March 23 2018, @01:14AM
Lots of assumptions here.
(Score: 2, Insightful) by Anonymous Coward on Friday March 23 2018, @01:24AM (5 children)
Obscene, per Google: offending against moral principles; repugnant (extremely distasteful; unacceptable)
What the fuck is immoral or repugnant about people freely giving him their money?
It's nobodies decision but the shareholders, fuck this obscene headline.
(Score: 0, Troll) by Anonymous Coward on Friday March 23 2018, @03:00AM (4 children)
The Musky One must be discredited to the public. He's not marching lock-step with the war drums the establishment is beating. We need people frightened, frantic, and always fearful.
What I wouldn't give to see the war propaganda in that other timeline where Clinton won. Don't get me wrong, we'd still be heading straight for World War III. I just want to see what the propaganda was like.
I'm frustrated with this propaganda actually. It's so banal. Yet, will it work? Unless
(Score: 4, Informative) by takyon on Friday March 23 2018, @03:17AM (3 children)
https://www.reuters.com/article/us-tesla-ceo/tesla-shareholders-approve-ceo-musks-2-6-billion-compensation-plan-idUSKBN1GX0C0 [reuters.com]
Is it propaganda? Not really. The skepticism in Tesla is well-founded. They are selling expensive electric cars, can't hit production targets, and are going up against much bigger car companies who are starting to seriously produce their own electric cars. The company has probably lost the Chinese market [bloomberg.com].
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 0) by Anonymous Coward on Friday March 23 2018, @04:06AM
I think most of the Teslas they're selling are going to Seattle where the last thing we need are more vehicles on the road. But, at least they're electric, so they're super efficient at running over the blind, elderly and homeless.
(Score: 0) by Anonymous Coward on Friday March 23 2018, @02:37PM (1 child)
Then he won't hit the targets and won't get the money. Where's the problem, again?
(Score: 0) by Anonymous Coward on Friday March 23 2018, @10:01PM
Pretty sure that was what was said about his previous pay package . . .
(Score: 4, Insightful) by Justin Case on Friday March 23 2018, @01:28AM (4 children)
Are there allegations he stole this money? Engaged in force or fraud? Bilked the taxpayers? Bribed Congress to choke his competition?
If so, let's hear them.
If not, how is accepting money people give you willingly and freely in exchange for a product they consider valuable "obscene"?
(Score: 5, Funny) by takyon on Friday March 23 2018, @01:32AM (1 child)
Ok, changed it for you and triggered AC above.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 0, Flamebait) by cocaine overdose on Friday March 23 2018, @01:52AM
(Score: 0, Troll) by cocaine overdose on Friday March 23 2018, @02:02AM (1 child)
I think if people want to celebrate downies, that's fine. Giving downies billions of dollars is a tad bit extreme and some may even cal it "obscene."
(Score: 0) by Anonymous Coward on Saturday March 24 2018, @02:56AM
Sure seems as if he's building an external sci-fi world to me.
Shame he's only a metaphorical faggot, children will take up too much of his time otherwise. That and who doesn't want a piece of Elong's dong?
(Score: -1, Troll) by cocaine overdose on Friday March 23 2018, @02:18AM (6 children)
I would like to be the first to say: Musk is a homosexual. And if you want to have his small, South African package in your mouth, you can go > V > ^ > > ^ V > > THAT A WAY [ycombinator.com]
(Score: -1, Troll) by Anonymous Coward on Friday March 23 2018, @02:37AM (5 children)
And it's irrelevant in both cases. Well, actually, a comment poster being a moron is somewhat relevant.
Oh well, carry on.
(Score: -1, Troll) by cocaine overdose on Friday March 23 2018, @02:41AM (4 children)
(Score: 0, Informative) by Anonymous Coward on Friday March 23 2018, @02:49AM (3 children)
You seem familiar with "man odor". Hm...
(Score: 0, Troll) by cocaine overdose on Friday March 23 2018, @02:58AM (2 children)
https://soylentnews.org/comments.pl?noupdate=1&sid=24662&page=1&cid=656363#commentwrap
(Score: 0) by Anonymous Coward on Friday March 23 2018, @04:27AM (1 child)
This troll is starting to seem very familiar! Anti-musk? Really bad sex-related posts? Not to bright, and dropped on his head when very small? Checks out, all of it. Set mods to kill.
(Score: 0, Troll) by cocaine overdose on Friday March 23 2018, @08:25AM
Chin up, fellow. ACs are the last bastion of good speech. Cherish your place, before the barbarians come to take your wives and eat your children.
(Score: 3, Interesting) by takyon on Friday March 23 2018, @02:50AM
It has more from the detractors.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 0) by Anonymous Coward on Friday March 23 2018, @05:14AM (1 child)
It doesn't exist. The whole system is ludicrous. All they have are ass wipers who think the crumbs will make them rich too. But, as long as the illusion works, it's all good... ciao, babe!
(Score: 0) by Anonymous Coward on Friday March 23 2018, @05:48AM
Was this your suicide letter?
(Score: 0, Offtopic) by Anonymous Coward on Friday March 23 2018, @06:32AM (1 child)
I'd rather take a submission from aristarchus/jmorris/khallow over this travesty of a story. Please, drive this site further into the ground, I think we're about 2.5 feet in anyway. 6 ft or bust!
(Score: 1, Flamebait) by takyon on Friday March 23 2018, @06:42AM
Fuck you too pal
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 4, Insightful) by Freeman on Friday March 23 2018, @03:22PM
Considering most of his compensation is based on the fact that he doesn't run the company into the ground seems like a really good thing. All I seem to hear about is XYZ CEO getting huge payments while the company goes in the toilet. That may just be the media filter focusing on all the crazy / bad things, though. I really don't care about Tesla, but I do hope Musk is successful. If only to further his plans with SpaceX.
Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
(Score: 0) by Anonymous Coward on Friday March 23 2018, @10:31PM
https://arstechnica.com/information-technology/2018/03/elon-musk-deletes-tesla-spacex-facebook-pages-after-cambridge-analytica-news/ [arstechnica.com]
Good call.