🚨 Tesla Update: FSD Probe Expands, Q3 Earnings Loom, and a Trillion-Do

With the critical Q3 earnings call set for October 22nd, Tesla is navigating a storm of headlines, from a broadening federal safety investigation into its self-driving software to the ongoing saga of Elon Musk’s proposed compensation.¹

FSD Under Fire: NHTSA Expands Probe After Traffic Violations

Federal safety regulators are intensifying their scrutiny of Tesla's Full Self-Driving (FSD) technology.²

Expanded Investigation: The National Highway Traffic Safety Administration (NHTSA) has launched a preliminary evaluation covering nearly 2.9 million Tesla vehicles equipped with FSD.³
The Cause: The probe follows multiple reports of FSD-enabled vehicles engaging in unsafe behavior, including running red lights and maneuvering into opposing lanes of traffic, leading to crashes and injuries.⁴
Safety Concerns: The agency is examining whether the system provides drivers with enough time and warning to intervene when errors occur.⁵

Q3 Earnings Call: Deliveries Set Record, Margins in Focus

Tesla is poised for an interesting earnings release next week, October 22nd.

Record Deliveries: The company previously announced record global deliveries of 497,099 vehicles for Q3, a significant rebound from earlier in the year.⁶
The 'Tax Credit Effect': Analysts suggest the strong delivery numbers may be partially attributed to U.S. consumers rushing to take advantage of the expiring federal EV tax credit.⁷
The Key Metric: Investor attention will be heavily focused on the automotive gross margin to see how aggressive price cuts have impacted profitability.

Musk's Massive Pay Package Heads to Shareholder Vote

The controversy over CEO Elon Musk's compensation continues, with shareholders preparing to vote on a massive new proposal.⁸

$1 Trillion Proposal: Tesla's board has proposed a new 10-year compensation plan potentially valued up to $1 trillion, conditional on the company hitting "Mars-shot" operational and market capitalization targets—including reaching a market value of $8.5 trillion.⁹
Goals: The ambitious targets also include milestones for robotaxi deployment, FSD subscriptions, and Optimus robot sales.
The Context: This proposal comes as the company continues to appeal a Delaware court's decision to strike down Musk's 2018 pay package, calling it "deeply flawed."¹⁰ The new plan is set for a non-binding vote at the annual meeting on November 6th.¹¹

Shanghai Boost: 6-Seater Model Y Drives China Sales

In China, Tesla has seen a much-needed lift in sales numbers, thanks to a new vehicle variant.¹²

China Rebound: Tesla China sales rose in September, breaking a two-month decline.¹³
The Model Y L: The sales boost is attributed to the recent launch of a new, six-seater Model Y L ("Long") variant, which features a stretched wheelbase and a third row of seats, appealing to family buyers in the critical Chinese market.¹⁴
New Option: The company also recently launched a new light grey interior option exclusively for the Model Y L in China.¹⁵