"Its earnings report was a largely disappointing one, with profit missing Wall Street's estimates despite record vehicle deliveries. Operating income plunged 40% in the third quarter, reflecting ongoing strains on the electric-vehicle business that's being buffeted by changing US policies. Costs are rising sharply for Tesla, which revealed an impact of more than $400 million last quarter from tariffs. Its operating expenses soared 50% to $3.4 billion in the period."
"Unmitigated Concerns' Proxy advisers Institutional Shareholder Services and Glass Lewis have recommended that investors reject the unprecedented payout to Musk, the value of which is dependent on Tesla reaching a litany of market value thresholds and operational milestones. ISS cited unmitigated concerns with the magnitude and design of the award, while Glass Lewis took issue with its potential to dilute other shareholders' ownership. Musk emphasized, as he has in the past, that sufficient voting control matters more to him than monetary compensation from Tesla."
Elon Musk spent the end of Tesla's earnings call urging investors to approve his $1 trillion pay package and criticizing shareholder advisory firms that opposed it. He said sufficient voting control matters more than monetary compensation and warned against so much control that he couldn't be fired if he became unstable. The call mainly focused on Tesla's artificial intelligence, humanoid robot and self-driving initiatives. Tesla reported disappointing earnings, with profit missing estimates despite record vehicle deliveries and operating income plunging 40% in the third quarter. Tariffs cost more than $400 million last quarter and operating expenses rose 50% to $3.4 billion. ISS and Glass Lewis recommended rejecting the payout, citing magnitude, design and dilution concerns, and the share price fell in premarket trading.
Read at www.mercurynews.com
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