Elon Musk

Norway’s $2 trillion sovereign wealth fund, a major Tesla shareholder, opposes Elon Musk’s proposed $1 trillion pay package due to concerns about its size, dilution, and key person risk mitigation. Norges Bank Investment Management (NBIM) has already voted against the plan, citing concerns about governance implications. The news impacted Tesla shares, trading 2.4% lower premarket. The shareholder vote is a crucial test of investor confidence and could have broader ramifications for executive compensation in the tech industry. Critics argue the plan incentivizes short-term gains at the expense of long-term sustainability.

Elon Musk addressed the long-delayed Tesla Roadster, aiming for an unveiling “hopefully before the end of the year,” after OpenAI CEO Sam Altman publicly expressed frustration with his long-standing reservation. Altman’s experience highlights growing impatience surrounding the car. Observers suggest Altman’s complaint prompted Musk’s comments. The Roadster, planned as a high-performance EV, aims to reclaim performance benchmarks amid competition. This news coincides with a crucial shareholder vote on Musk’s substantial pay package, marking a pivotal moment for Tesla.

Wikipedia founder Jimmy Wales is skeptical of Elon Musk’s Grokipedia, citing concerns about the reliability of Large Language Models (LLMs) used to generate its content and potential bias. Wales argues that LLMs are prone to errors and fabricating sources, unlike Wikipedia’s community-driven accuracy. He defends Wikipedia’s reliance on mainstream sources against Musk’s claims of “woke bias.” While not dismissing AI’s potential entirely, Wales believes current LLMs are inadequate for building trustworthy knowledge repositories and worries about the rise of AI-generated misinformation.

xAI, Elon Musk’s AI company, has launched Grokipedia, an AI-driven encyclopedia challenging Wikipedia. Powered by the Grok AI model, it aims to be a less biased resource. The initial launch faced technical difficulties but is now accessible with over 885,000 articles. Unlike Wikipedia’s volunteer-based content creation, Grokipedia’s content is AI-generated, raising questions about accuracy and sourcing. While Musk touts Grokipedia as an “anti-woke” alternative, its reliance on Wikipedia as a source has been noted. Wikipedia’s co-founders have expressed skepticism and criticism, highlighting the challenges of AI-generated knowledge.

Tesla’s Board Chair urges shareholders to approve Elon Musk’s $1T compensation package, citing his vital role in the company’s future, particularly AI and robotics. The board argues that rejecting the package could devalue Tesla. ISS recommends against it, and the “Take Back Tesla” campaign raises ESG concerns. The vote includes board re-elections. The decision hinges on Musk’s continued vision and influence versus concerns over excessive compensation and potential brand damage. Increased voting power for Musk is also under consideration.

Elon Musk criticized proxy advisory firms ISS and Glass Lewis, labeling them “corporate terrorists” for influencing shareholder votes, particularly regarding his compensation package. These firms hold significant sway over institutional investors, especially with growing passive investment. Critics, including Musk, worry about their lack of nuance and potential to undermine corporate governance. Proponents argue they provide valuable research for investors lacking resources. The debate underscores a fundamental question about the control of publicly traded companies and the growing role of proxy advisors.

Tesla’s AI5 chip, crucial for its autonomous driving efforts, will be manufactured by Samsung in Texas and TSMC in Arizona. Tesla aims for “excess production” to power its data centers. While Tesla will still utilize Nvidia’s GPUs for AI model training, the AI5 chip, unveiled in 2024, represents a move towards vertical integration and custom silicon. Designed for Tesla’s specific needs, the AI5 aims for superior performance-per-dollar by removing legacy components, potentially challenging Nvidia’s dominance in the AI chip market.

Tesla’s Q3 earnings call left investors uneasy as Elon Musk avoided discussing key financial metrics like EV demand and tariff impacts. The stock dipped after-hours. Musk focused on future robotaxis and humanoid robots (Optimus), claiming they’ll revolutionize society. However, autonomous driving efforts remain limited. FSD adoption is low, and revenue lags. Musk also emphasized his control over the “robot army,” criticizing proxy advisors against his pay plan. Tesla’s brand perception and investor confidence appear to be declining.

Tesla’s Q3 revenue beat expectations with a 12% increase, but earnings fell short, leading to a stock dip. Profitability declined due to price cuts and increased operating expenses driven by AI investments. The expiration of EV tax credits and slumping European sales, influenced by Musk’s public persona and competition, added complexity. Tesla is focusing on long-term projects like Cybercab, Optimus robots, and Robotaxi expansion, but offered limited guidance, concerning investors about their Full Self-Driving system. Energy generation and storage saw significant growth, fueled partly by Musk’s AI venture, xAI.

A public dispute has erupted between SpaceX CEO Elon Musk and acting NASA Administrator Sean Duffy over delays in SpaceX’s lunar lander development for the Artemis III mission. Duffy stated SpaceX is “behind” schedule, prompting Musk to publicly criticize Duffy’s competence. NASA seeks strategies from SpaceX and Blue Origin to accelerate progress and may award additional contracts to diversify the Human Landing System (HLS). The Artemis program, facing delays and challenges including a government shutdown, aims to establish a sustained lunar presence, while balancing public-private partnerships and ensuring mission success.