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9 News
05-08-2025
- Automotive
- 9 News
Tesla hands the world's richest man a $44 billion payday
Your web browser is no longer supported. To improve your experience update it here Tesla has given Elon Musk a stock grant of $US29 billion ($44.79 billion) as a reward for years of 'transformative and unprecedented" growth despite a recent foray into right-wing politics that has hurt its sales, profits and its stock price. In giving its billionaire chief executive 96 million in restricted shares, the electric car company noted that Musk had not been paid in years because a Delaware court rejected his 2018 compensation package. The award comes eight months after a judge revoked the 2018 pay package a second time. Tesla has appealed the ruling. Elon Musk will wield more control of Tesla after being handed 96 million more shares in the company. He is pictured speaking at a conservative conference earlier this year. (AP) Tesla on Monday (Tuesday AEST) called the grant a 'first step, good faith' way of retaining Musk and keeping him focused, citing his leadership of SpaceX, xAI and other companies. Musk said recently that he needed more shares and control to stop activist shareholders from ousting him. 'Rewarding Elon for what he has done and continues to do for Tesla is the right thing to do,' the company said in a regulatory filing, citing an increase of $US735 billion in Tesla's value on the stock market since 2018. Tesla shares have plunged 25 per cent this year largely due to blowback over Musk's affiliation with US President Donald Trump. But Tesla also faces intensifying competition from both the big Detroit car makers, and from China. In its most recent quarter, Tesla reported that quarterly profits plunged from $US1.39 billion to $US409 million. Revenue also fell and the company fell short of even the lowered expectations on Wall Street. Investors have grown increasingly worried about the trajectory of the company after Musk had spent so much time in Washington this year, becoming one of the most prominent officials in the Trump administration in its bid to slash the size of the US government. Tesla vehicles at the company's store in Warminster, Pennsylvania, last month. (Bloomberg) The electric vehicle maker said in the regulatory filing that Musk must first pay Tesla $US23.34 a share of restricted stock that vests, which is equal to the exercise price per share of the 2018 pay package. In December, Delaware Chancellor Kathleen McCormick reaffirmed her earlier ruling that Tesla must revoke Musk's multibillion-dollar pay package. She found that Musk engineered the landmark pay package in sham negotiations with directors who were not independent. The rulings came in a lawsuit filed by a Tesla stockholder who challenged Musk's 2018 compensation package. That pay package carried a potential maximum value of about $US56 billion, but that sum has fluctuated over the years based on Tesla's stock price. Musk appealed the order in March. A month later Tesla said in a regulatory filing that it was creating a special committee to look at Musk's compensation as CEO. Musk has been one of the richest people in the world for several years. Wedbush analyst Dan Ives feels Musk's stock award may alleviate some Tesla shareholder concerns. 'We believe this grant will now keep Musk as CEO of Tesla at least until 2030 and removes an overhang on the stock,' Ives wrote in a client note. 'Musk remains Tesla's big asset and this comp issue has been a constant concern of shareholders once the Delaware soap opera began.' Under pressure from shareholders last month, Tesla scheduled an annual shareholders meeting for November to comply with Texas state law. A group of more than 20 Tesla shareholders, which have watched Tesla shares plummet, said in a letter to the company that it needed to at least provide public notice of the annual meeting. finance World TESLA elon musk CONTACT US Auto news: Honda here to stay in Australia, announces growth plans.
7NEWS
23-04-2025
- Automotive
- 7NEWS
Musk to spend more time with Tesla as profits dive
Elon Musk says he will dedicate more time to Tesla starting in May after the company reported a big drop in first-quarter profit. The company has faced a backlash faced angry protests over Musk's leadership of a federal government jobs-cutting group that has divided the country and sparked protests. Tesla's first-quarter profits have plunged by more than two-thirds amid a backlash against Elon Musk's electric car company that has hurt sales and sent its stock plunging. The Austin, Texas, company on Tuesday said quarterly profits fell by 70 per cent to to $US409 million ($A638 million), or 12 cents a share - far below analyst estimates. Tesla's revenue fell nine per cent to $US19.3 billion ($A30.1 billion) in the January through March period, below Wall Street's forecast. Along with his involvement with the US government and DOGE, Musk has publicly supported far-right politicians in Europe and alienated potential buyers there also. Many investors have also complained Musk is too distracted with his Trump administration role to be running Tesla and that he should either relinquish his position as CEO or abandon his advisory role in Washington. Tesla stock has fallen more than 40 per cent in 2025 but rose slightly in after-hours trading. Morningstar analyst Seth Goldstein said earlier reports of plunging sales that had tanked the stock made the results almost predictable. 'They're not particularly surprising given that deliveries were down,' Goldstein said, adding that the company is still generating cash. 'It was good to see positive cash flow.' Tesla will hold a conference call to review the quarterly results and give a company update later Tuesday afternoon. Tesla investors will be listening closely for updates on several strategic initiatives. The company is expected to roll out a cheaper version of its best-selling vehicle, the Model Y SUV later in the year. Tesla has also said it plans to start a paid driverless robotaxi service in Austin, Texas, in June. The company that once dominated EVs is also facing fierce competition for the first time. Earlier in 2025 Chinese EV maker BYD announced it had developed an electric battery charging system that can fully power up a vehicle within minutes. And Tesla's European rivals have begun offering new models with advanced technology that is making them real alternatives, just as popular opinion in Europe has turned against Musk. Investors expect Tesla will be hurt less by the Trump administration's tariffs than most US car companies because it makes most of its US cars domestically. But Tesla won't be completely unscathed. It sources some materials from abroad that will now face import taxes. Retaliation from China will also hurt Tesla. The company was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.
Sydney Morning Herald
22-04-2025
- Automotive
- Sydney Morning Herald
Tesla's profits plummet to five-year low as Musk pays the price of Trump
Tesla's profits have plummeted to a five-year low as the electric car company counts the cost of Elon Musk's alliance with Donald Trump and the US president's trade war. The electric car company's net income slumped by 71per cent to $US409 million ($261 million) in the three months to the end of March, marking its least profitable quarter since 2020. Sales came in at $US19.3 billion, down 9 per cent and well below market estimates. The figures lay bare the financial impact of Tesla chief Elon Musk's enthusiastic support for Donald Trump. Left-wing drivers have mounted a boycott of the company's cars in response to Musk's decision to take a position in the Trump White House and the president's tariffs are also impacting the business. 'Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,' the electric carmaker warned. Tesla also admitted that 'changing political sentiment' was damaging sales. Deliveries of its vehicles fell 13 per cent in the first three months of the year, Tesla reported earlier in April. The company warned that the twin impact of tariffs and boycotts 'could have a meaningful impact on demand for our products in the near term.' The slump has prompted questions over whether the billionaire's association with Mr Trump's MAGA movement has done permanent damage to the company. The results came hours after Scott Bessent, the US Treasury Secretary, said that America's trade war with China was not sustainable, telling a JPMorgan investor summit there was 'a big deal to be done.' The admission is a sign that officials are growing wary of the economic cost of Trump's aggressive trade war, which has prompted a sell-off of US stocks, debt and the US dollar.
The Age
22-04-2025
- Automotive
- The Age
Tesla's profits plummet to five-year low as Musk pays the price of Trump
Tesla's profits have plummeted to a five-year low as the electric car company counts the cost of Elon Musk's alliance with Donald Trump and the US president's trade war. The electric car company's net income slumped by 71per cent to $US409 million ($261 million) in the three months to the end of March, marking its least profitable quarter since 2020. Sales came in at $US19.3 billion, down 9 per cent and well below market estimates. The figures lay bare the financial impact of Tesla chief Elon Musk's enthusiastic support for Donald Trump. Left-wing drivers have mounted a boycott of the company's cars in response to Musk's decision to take a position in the Trump White House and the president's tariffs are also impacting the business. 'Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,' the electric carmaker warned. Tesla also admitted that 'changing political sentiment' was damaging sales. Deliveries of its vehicles fell 13 per cent in the first three months of the year, Tesla reported earlier in April. The company warned that the twin impact of tariffs and boycotts 'could have a meaningful impact on demand for our products in the near term.' The slump has prompted questions over whether the billionaire's association with Mr Trump's MAGA movement has done permanent damage to the company. The results came hours after Scott Bessent, the US Treasury Secretary, said that America's trade war with China was not sustainable, telling a JPMorgan investor summit there was 'a big deal to be done.' The admission is a sign that officials are growing wary of the economic cost of Trump's aggressive trade war, which has prompted a sell-off of US stocks, debt and the US dollar.
Perth Now
22-04-2025
- Automotive
- Perth Now
Tesla Q1 profit falls by 70 per cent amid Musk backlash
Tesla's first-quarter profits have plunged by more than two-thirds amid a backlash against Elon Musk's electric car company that has hurt sales and sent its stock plunging. The Austin, Texas, company on Tuesday said quarterly profits fell by 70 per cent to to $US409 million ($A638 million), or 12 cents a share - far below analyst estimates. Tesla's revenue fell nine per cent to $US19.3 billion ($A30.1 billion) in the January through March period, below Wall Street's forecast. The disappointing results come as the company struggles to sell cars to consumers angry over Musk's leadership of a federal government jobs-cutting group that has divided the country and sparked protests. Musk also has publicly supported far-right politicians in Europe and alienated potential buyers there also. Many investors have also complained Musk is too distracted with his Trump administration role to be running Tesla and that he should either relinquish his position as CEO or abandon his advisory role in Washington. Tesla stock has fallen more than 40 per cent in 2025 but rose slightly in after-hours trading. Morningstar analyst Seth Goldstein said earlier reports of plunging sales that had tanked the stock made the results almost predictable. "They're not particularly surprising given that deliveries were down," Goldstein said, adding that the company is still generating cash. "It was good to see positive cash flow." Tesla will hold a conference call to review the quarterly results and give a company update later Tuesday afternoon. Tesla investors will be listening closely for updates on several strategic initiatives. The company is expected to roll out a cheaper version of its best-selling vehicle, the Model Y SUV later in the year. Tesla has also said it plans to start a paid driverless robotaxi service in Austin, Texas, in June. The company that once dominated EVs is also facing fierce competition for the first time. Earlier in 2025 Chinese EV maker BYD announced it had developed an electric battery charging system that can fully power up a vehicle within minutes. And Tesla's European rivals have begun offering new models with advanced technology that is making them real alternatives, just as popular opinion in Europe has turned against Musk. Investors expect Tesla will be hurt less by the Trump administration's tariffs than most US car companies because it makes most of its US cars domestically. But Tesla won't be completely unscathed. It sources some materials from abroad that will now face import taxes. Retaliation from China will also hurt Tesla. The company was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.
