Elon Musk

Elon Musk’s AI startup, xAI, is nearing a $15 billion funding round at a $230 billion pre-money valuation. This follows earlier reports of a $15 billion raise that Musk initially denied. A large portion of the funds will be used to acquire GPUs for training large language models. The deal highlights the strong investor interest in AI, mirroring substantial funding rounds and valuations for companies like OpenAI and Anthropic. xAI’s Grok chatbot and Grokipedia have also drawn attention, alongside xAI’s merger with X.

Coinbase joins Tesla and SpaceX in leaving Delaware, spurred by concerns over legal uncertainties highlighted by a court ruling against Elon Musk’s compensation. While Nevada emerges as a popular alternative, data indicates Delaware remains a dominant incorporation hub, attracting many new entities despite the high-profile departures. Delaware defends its business-friendly environment built on decades of established corporate code and experienced judiciary, citing its commitment to adapting to modern business needs.

Tesla shareholders approved a substantial compensation package for CEO Elon Musk, potentially worth $1 trillion in stock over the next decade. While approved, support decreased slightly compared to a similar 2018 plan. Excluding insider holdings, roughly 66.9% of shares voted for the plan, down from 73% previously. Concerns included slower sales growth, Musk’s political views, and increased competition. Despite these factors, investors see Musk as crucial to Tesla’s success and were unwilling to risk his departure. The plan’s size and milestones attracted criticism from proxy advisory firms.

Elon Musk announced Tesla may build its own “gigantic” chip fabrication plant (“Tesla terra fab”) to meet growing AI and robotics demands. Currently relying on TSMC and Samsung, Tesla could also partner with Intel. Musk envisions a capacity of 100,000 wafer starts per month, scaling to 1 million, potentially disrupting the semiconductor landscape. This signifies a major shift to vertical integration. Musk also announced the production of Cybercab in April, reinforcing Tesla’s commitment to AI and robotics as drivers of economic growth.

This CNBC Morning Squawk newsletter highlights five key market insights: Elon Musk’s potential $1T Tesla compensation pending Optimus robot success, AI stock retreat amid valuation concerns, Trump’s negotiated prescription obesity drug savings, no federal bailout for OpenAI despite revenue projections, and Target’s retail strategy reset to improve the in-store experience. The labor market uncertainty and Target’s operational overhaul are also noted.

Tesla shareholders approved Elon Musk’s compensation package, potentially worth nearly $1 trillion, awarding stock options tied to ambitious performance goals, including market capitalization and profitability targets. The vote also addressed Tesla’s potential investment in xAI, but next steps are under deliberation. Despite opposition from advisory firms, the board actively campaigned for approval, emphasizing Musk’s crucial role. The plan lacks restrictions on Musk’s political activities or time commitment to Tesla, despite ongoing debate regarding his controversial statements on sales. A Delaware court ruling on a previous pay package adds further complexity.

US job losses surged in October, particularly in the tech sector, sparking concerns about stability and the impact of automation. Meanwhile, Elon Musk secured shareholder approval for a massive compensation package contingent on Tesla’s growth, contrasting with broader tech layoffs. Tech stocks, including Nvidia, experienced declines, reflecting market volatility and investor anxieties. Gulf monarchies are investing heavily in AI, aiming to diversify their economies amid fluctuating oil prices, facing both opportunities and risks.

Tesla shareholders will vote on a massive compensation package for CEO Elon Musk, potentially worth nearly $1 trillion in stock over the next decade. The board argues Musk’s leadership is crucial for Tesla’s future, particularly in robotics and AI. Some investors oppose the plan, citing its size, dilution concerns, and Musk’s other ventures, particularly growing political engagement. The vote follows a court ruling invalidating Musk’s previous pay plan. The new plan contains ambitious targets related to market cap, vehicle deliveries, and earnings.

Tesla’s German sales plummeted in October 2025, despite overall EV market growth. Only 750 units were sold, a 50% year-over-year decrease. Analysts attribute this decline to several factors: Elon Musk’s polarizing image impacting brand perception, increased competition from European and Chinese automakers offering cheaper EVs, and the discontinuation of EV purchase incentives. Tesla introduced a lower-cost Model Y in response, but its impact remains unclear. A planned government incentive program in 2026 may boost overall EV adoption but won’t necessarily favor Tesla.

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.