TechCrunch Mobility: Elon Musk’s threat worked

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Did you hear that? Elon Musk received a $1 trillion compensation package. Of course I did. Because articles about this highly anticipated vote are being reported everywhere, including here on TechCrunch. But what does this actually mean?

Yes, it’s about money, but it’s more about power and control. You may remember that Mr. Musk has repeatedly talked about the need to control Tesla and presented various scenarios to make that point, including an army of robots.

And the stakes were high. He threatened to leave if he couldn’t control it. Shareholders couldn’t and didn’t want to imagine Tesla without Elon.

Musk’s money, power and control will all increase if Tesla reaches milestones based on operating, adjusted earnings and market capitalization. If the goal is met, each tranche will give Musk 35.3 million shares. For example, the first tranche milestone is $2 trillion market cap. Tesla’s market capitalization currently stands at approximately $1.5 trillion.

Tesla is a strange animal whose stock price often has nothing to do with its actual fundamentals. It’s not unusual for Tesla’s stock price to rise because of comments made by Musk on an earnings call, even if quarterly results aren’t that great. I think this is very frustrating for other car manufacturers.

That’s why I’m more interested in some of the products and adjusted profit targets associated with this package. Goals include delivery of 20 million Tesla vehicles, 10 million active fully self-driving subscriptions, delivery of 1 million robots, and commercial operation of 1 million robotaxis within 10 years. Scroll to the bottom to take part in the survey regarding these goals.

Musk used the shareholder meeting for more than just a victory lap, but the atmosphere was certainly there. He made a number of predictions and promises, including that CyberCab production would begin in April and that the company may need to build a “huge” semiconductor manufacturing plant. He also returned to the Roadster 2, which was first unveiled as a prototype vehicle in 2017. The production version is scheduled to be released on April 1, 2026, yes, April Fools’ Day.

Reminder: Master Plan 4, the centerpiece of Tesla’s proposal to shareholders for approval of a $1 trillion pay package, is still woefully lacking in detail.

small bird

We are working on some spicy items, but nothing is ready yet. In the meantime, don’t forget that our email is always open for tips.

Any tips? Email Kirsten Korosec at kirsten.Korosec@techcrunch.com, email my Signal at korosec.07, or email Sean O’Kane at sean.okane@techcrunch.com.

Great deal!

Electric aviation startup Beta Technologies pushed through with its IPO despite the government shutdown thanks to some relaxed rules courtesy of the SEC. The company raised a huge amount of $1 billion and went public on the New York Stock Exchange.

And while the stock didn’t soar on the first day of trading, it didn’t fall either. This is what has happened with several recent IPOs.

The Vermont-based company priced its IPO stock at $34, above its expected range of $27 to $33. Beta Technologies sold 29.9 million shares, raising $1 billion at a valuation of $7.4 billion. The stock closed at $36 and remained at that level the next day. The stock price has since fallen to about $31.

Of course, this is a long game, and Beta Technologies is still working on commercializing its aviation products. Let’s take a look at the company’s status and stock price one year from now.

Other sales that caught our attention this week…

Archer Aviation has raised $650 million through a stock offering of 81.25 million shares, funding the $126 million acquisition of Hawthorne Airport, a strategically important airport in Los Angeles. Shareholder reaction was not positive, with the stock price down more than 12.6% on Friday.

Fun fact: aside from having a great restaurant, this airport is in Elon Musk’s backyard. Tesla Design Studio and SpaceX are right next door, and the airport has been used for various product launches, including the Tesla Semi.

Evotrex, a startup developing hybrid RV travel trailers with integrated gas engines, has come out of stealth with $16 million in seed funding from Anker and early-stage Chinese venture firms Unity Ventures, Kylinhall Partners, and Vision Plus Capital.

Indian two-wheeler giant TVS Motor has sold its entire stake in ride-hailing company Rapido to MIH Investment, the investment arm of Accel & Prosus, for 2.88 billion pounds (approximately $32 million).

Saudi Arabia’s sovereign wealth fund, which is the majority shareholder in Lucid Motors, has raised the cap on its loan agreement from $750 million to about $2 billion, giving the company liquidity until 2027.

Rivian announced its third-quarter results this week, but in the midst of those results, something troubling happened. The company spun off another company. This time it’s an industrial AI and robotics venture company called Mind Robotics. Remember, earlier this year Rivian spun off a micromobility company called “Also.” Mind Robotics has already raised $115 million in a seed round led by VC firm Eclipse. Jiten Behl, a partner at Eclipse who previously worked at Rivian, is also a major backer.

Notable reads and other trivia

Bryant Walker-Smith, an associate professor at the University of South Carolina School of Law and (courtesy) School of Engineering, has long been a go-to expert and advisor to governments and safety organizations on autonomous driving, particularly on how to communicate with the public. He published a paper last month and it would be a shame not to share it here. It’s called “self-driving” and means autonomous driving.

Ford executives are considering whether to retire the F-150 Lightning truck.

Lucid continues its search for a permanent CEO and is in the midst of a management shake-up. Eric Buck, the EV maker’s chief engineer, is leaving the company after more than 10 years, and Jeri Ford, vice president of quality, is also leaving the company. TechCrunch also learned that former VP of Engineering James Hawkins has also left the company. Meanwhile, Emad Dolala, senior vice president of powertrain, will be promoted to a position overseeing all aspects of “engineering and digital.”

Luminar continues to struggle. The company recently received an eviction notice for one of its offices in Orlando, Florida.

Lyft had a profitable third quarter, including a profit of $46.1 million. This is good news considering it reported a loss of $12.4 million in the same period last year. Lyft also saw ridership increase (15% year-over-year to $248.8 million) and revenue grew 11% year-over-year to $1.69 billion.

Rivian announced its third quarter earnings, and although the company is still operating at a loss, the earnings results appeased Wall Street. The company’s revenue increased 78% year over year to $1.56 billion, which is no small thing. However, the company’s third-quarter loss was $1.17 billion, up 6% from the $1.1 billion loss in the same period last year.

Waymo plans to launch robotaxi services in Detroit, Las Vegas, and San Diego. If it seems like Waymo is growing fast, you’d be right. Don’t forget, at TechCrunch Disrupt last month, Waymo co-CEO Tekedra Mawakana said that by the end of 2026, “we will be able to offer one million trips a week.” Waymo hasn’t released its weekly numbers since April, when the number of weekly trips exceeded 250,000.

One more thing…

It’s time to vote! Sign up for our newsletter to participate. Have any questions? Email kirsten.Korosec@techcrunch.com.