Kurt-Erik Karlsen

MCSE 2003, MCITP 2008, HP AIS/ASE, Symantec BE 10/12, VMWare VCE 3

[Tesla @Tesla]

Q2 2026 Earnings Call https://t.co/zZS6ii2TWK

[Tesla @Tesla]

Q2 Shareholder Update → https://t.co/u0UcDOuMNa

Highlights
– Cybercab began production at Gigafactory Texas

– Tesla Semi remains on track for volume production this year at our new factory in Nevada

– Making continued progress with battery pack capacity expansion (the main limiting factor to near-term vehicle production volume increase)

– Megafactory Texas is nearing completion (start of production planned for this year)

– More customers are now opting to subscribe to FSD at the time of vehicle purchase!

– Robotaxi rollout continued in the US. Now live in 7 major metros

– Construction of Optimus at Fremont Factory began after decommissioning the Model S & X lines. Planned production later this year

From here, there remains much hard work as we aim to revolutionize transportation, energy and productivity through our leading real-world AI. Scaling will be non-linear and we are focused on long-term value creation.

We’ve never been more optimistic about the future.

Automotive
– Record deliveries in several markets: South Korea, Australia, Colombia, Japan, Taiwan, Thailand, Portugal, the Philippines, Chile, Slovenia & Lithuania

– We launched the Model YL in the US in July and have seen a positive response from customers

Energy generation and storage
– Record energy storage deployments in EMEA, supported by record deployments from Megafactory Shanghai, which continues to ramp production

– On track to begin production of Megapack 3 & Megablock this year at our new Megafactory Texas

– Powerwall 3P (three-phase) is now available in Germany and is designed to meet the power needs of German homes with a single unit

Robotics
– Installing the first-generation lines for Optimus at Fremont Factory, where we expect to start production soon

– The initial Optimus builds will be used in our Optimus Academy for training data collection and further functionality development

– Additionally, we continued site development at Gigafactory Texas with building construction now in full swing

AI Training Compute
– More than doubled our onsite compute in Texas (in terms of MW of compute) during the first half of 2026

– Cortex 2 supports the development of both vehicle and humanoid robot autonomy software & will ramp further over the rest of the year

Battery
– Ramping new battery & material factories, including vehicle pack capacity in Berlin, cathode material production and lithium refining in Texas and LFP cells in Nevada for our energy storage products

– Increasing production of 4680 cells to support ramping Cybercab & Tesla Semi plus increased production of Model Y

Other Supporting Infrastructure
– Added over 2,400 net new Supercharging stalls, growing the network by 17% year-over-year

AI Software
– Started rolling out FSD v14 lite to early-access customers in the US & South Korea with AI3 hardware

This software build distills the driving behavior from AI4’s v14 series into both the camera & compute configuration of AI3, bringing destination options & speed profiles. It also addresses challenging driving scenarios with improved proactive & reactive responsiveness

AI Inference Compute
– Making progress on construction & equipment procurement for our semiconductor fab in Austin

Automotive and Other Software
– Rolled out Summer Release:
Self-Driving stats are now available in the mobile app

Grok can make phone calls, search & play music, and adjust climate controls, among other things

Automatic Navigation expands beyond home & work to support any destination based on personal habits and schedule

Robotaxi
– Started production of Cybercab, our purpose-built autonomous EV designed to be the workhorse of our Robotaxi fleet

– Began offering employee rides in Cybercabs on our GFTX campus in July

– Preparing for expansion of our Robotaxi service to additional US metros: testing, permitting & first responder training

– Expanded unsupervised rides to the entire Austin metro area & launched unsupervised rides in Miami, Orlando & Tampa in July

FSD Supervised
– Record net new subscriptions in Q2

– Record FSD attach rates in North America, with over half of new deliveries including FSD subscriptions

– Received additional approvals in Lithuania, Estonia, Denmark & Belgium, with customers in these countries driving over 50 million kilometers (31 million miles) on FSD as of July

[Tesla Europe, Middle East & Africa @teslaeurope]

Also, Grok now available in all of Europe

[Kurt-Erik Karlsen @kekarlsen]

@teslaeurope @grok does it include Norway?

[Kees Roelandschap @KRoelandschap]

FSD in Europe 🇪🇺

The wait is finally over!!!

I knew it was coming and I expected it to be 23:59

YES

[Kurt-Erik Karlsen @kekarlsen]

I’m incredibly excited about this, it truly has the potential to be both life-changing and life-saving. I hope it reaches the rest of the EU as soon as possible, and that we see quick approval and adoption in Norway as well. Congratulations to the Tesla team!

[Elon Musk @elonmusk]

First (supervised) FSD approval in Europe!

Congratulations to the Tesla team and thank you to the regulatory authorities in the Netherlands for all the hard work required to make this happen.

[Elon Musk @elonmusk]

First (supervised) FSD approval in Europe!

Congratulations to the Tesla team and thank you to the regulatory authorities in the Netherlands for all the hard work required to make this happen.

[Tesla Owners Club Nederland 🇳🇱 @TeslaOwnersNL]

It's finally here! 😎Our Final Countdown to the imminent arrival of FSD in Europe @Tesla lightshow! Perfectly orchestred by @Teslalightshows, powered by @enhauto and greatly hosted at @RDWnl's test center in Lelystad 🇳🇱 Enjoy!
@teslaeurope @TeslamagazineNL @elonmusk @mayemusk

[SpaceX @SpaceX]

Announcing TERAFAB: the next step towards becoming a galactic civilization https://t.co/xTA70LOU0e

[Tesla @Tesla]

TERAFAB: the next step to becoming a galactic civilization

Together with @SpaceX & @xAI, we're building the largest chip manufacturing facility ever (1TW/year) – combining logic, memory & advanced packaging under one roof.

To harness as much power as possible from the Sun, we need to send 100 million tons of solar capture into space – per year.

This requires massive scale.

– Capability to launch millions of tons of mass into orbit

– Solar-powered AI satellites

– Millions of @Tesla_Optimus robots to help build it out

All of these need chips: 100-200GW of chips for Optimus alone, plus terawatts for solar-powered AI satellites.

That's more than all the chip manufacturers in the world combined can provide today, or even by 2030 (based on projected production growth).

We're building TERAFAB to close the gap between today’s chip production & the future's demand – a future among the stars

https://t.co/tHumlppgMm

[Elon Musk @elonmusk]

SpaceX

[Tesla @Tesla]

Announcing TERAFAB: the next step towards becoming a galactic civilization https://t.co/IDKey07mJa

[Tesla Europe, Middle East & Africa @teslaeurope]

Come experience FSD Supervised on your local roads!  

Ride along in the passenger seat to experience how it handles real-world traffic & the most stressful parts of daily driving, making the roads safer for all

Available now in Italy, France & Germany – more coming soon

[Tesla Europe, Middle East & Africa @teslaeurope]

Tesla has been working hard toward shipping Full Self-Driving (Supervised) in Europe for over 12 months now. We have given FSD demos to regulators of almost every EU country. We have requested early access, pilot release programs or exemptions where possible.

We have developed & shared detailed safety evidence for FSD, now public in our latest Safety Report. And we have driven over 1 million kilometers safely on EU roads across 17 different countries (internal testing). 

Our main path to success is partnering with the Dutch approval authority RDW to gain exemption for the feature. This involves proving compliance with existing regulations (UN-R-171 DCAS) + filing an exemption (EU Article 39) for yet-to-be-regulated behaviors like Level 2 systems off-highway, system-initiated lane changes with hands-off the wheel etc. 

Some of these regulations are outdated and rules-based, which makes FSD illegal in its current form. Changing FSD to be compliant with these rules would make it unsafe and unusable in many cases. While we have changed FSD to be maximally compliant where it is logical and reasonable, we won't sacrifice the safety of a proven system or materially deteriorate customer usability. 

As a result, we are gathering evidence to get exemptions on a specific rule-by-rule basis. Unfortunately, the real world fleet-proven safety wins alone are considered insufficient. 

Currently, RDW has committed to granting Netherlands National approval in February 2026. Please contact them via link below to express your excitement & thank them for making this happen as soon as possible. Upon NL National approval, other EU countries can immediately recognize the exemption and also allow rollout within their country. Then we will bring it to a TCMV vote for official EU-wide approval. 

We're excited to bring FSD to our owners in Europe soon!

https://t.co/FhoK0xX81r

[Tsla Chan @Tslachan]

$TSLA
BREAKING: Tesla unveiled its next generation of energy products.

It is a MegaBlock!

[SpaceX @SpaceX]

Watch Starship's tenth flight test → https://t.co/UIwbeGoo2B https://t.co/gbQv9akMO9

[Muskonomy @muskonomy]

🚨BREAKING: Grok Finance is coming soon💰

• Trading stock charts
• Financials & income statements
• Balance sheets & cash flow
• Quarterly & annual data
• Chat with stock data

Launching soon on Grok Web.

[Teslaconomics @Teslaconomics]

Believe it or not, a long time ago, elevators had human operators. Someone would stand there, pull a lever, and physically guide you to your floor.

When the first button operated elevators came out, people were freaking out.

“No one’s driving it?!”, “No way am I getting in that without a human!” they thought.

But over time, the fear faded.

Now, you press a button without a second thought, trusting the system completely.

That’s exactly what will happen with Tesla Robotaxis in my honest opinion.

At first, people will hesitate, unsure about a ride with no driver. But soon, it’ll feel just as normal as calling an elevator. You’ll enter a destination on your phone, a Tesla will arrive, and then you press a button on your phone, and it’ll take you safely to your destination.

No human.

No small talk.

No steering wheel.

No pedals.

Just seamless, safe, stress-free travel.

Remember, at times, the future feels scary, until one day it becomes second nature.

Then you wonder how anyone ever lived without it and for how long people have been gambling with their lives driving a vehicle manually.

And this time Tesla Robotaxis will be no different, except with this technology, you’ll be able to get driven autonomously anywhere, not just within a building.

[Nic Cruz Patane @niccruzpatane]

Tesla is the most

Undervalued
Underappreciated
Underrated
Unstoppable

Company in the world.

[Tesla @Tesla]

A Letter to Our Shareholders on the 2025 CEO Interim Award

Dear Fellow Tesla Shareholders,

Today we announce an important first step in compensating Elon Musk for his extraordinary work at Tesla. As you know, Elon has not received meaningful compensation for eight years since the 2012 CEO Performance Award was last earned in 2017. Despite overwhelming support from you in 2018 and again in 2024, our legal efforts continue in the Delaware courts to reinstate the 2018 CEO Performance Award. Despite these legal challenges, we can all agree that Elon has delivered the transformative and unprecedented growth that was required to earn all milestones of the 2018 CEO Performance Award. This growth has translated into immense value generated for Tesla and all our shareholders.

To recognize what Elon has accomplished and the extraordinary value he delivered to Tesla and our shareholders, we believe we must take action to honor the bargain that was struck in 2018. After all, “a deal is a deal.” Thus, as evidence that Tesla is committed to honoring its promises in the 2018 CEO Performance Award and intends to compensate its CEO for his future services commensurate with his contributions to our company and shareholders, we have recommended this award as a first step, “good faith” payment to Elon.

Delaware litigation continues to loom over us after seven years.

As we told you last year, the 2018 CEO Performance Award resulted in a $2.3 billion stock-based compensation charge to Tesla but brought about $735 billion of increased market capitalization. Despite delivering such extraordinary returns, that award continues to be in legal limbo despite two separate shareholder votes supporting it by large margins. Furthermore, we have no clear timeline for resolution, as we are still waiting not only for a ruling, but a hearing date to be heard in front of the Delaware Supreme Court.  Rewarding Elon for what he has done and continues to do for Tesla is the right thing to do.

Retaining Elon Is More Important Than Ever Before

Today, Tesla is at a critical inflection point that has the potential to create continued extraordinary value for you, the shareholders. Through Elon’s unique vision and leadership, Tesla is transitioning from its role as a leader in the electric vehicle and renewable energy industries to grow towards becoming a leader in AI, robotics and related services. To succeed, it requires a leader who combines strategic foresight, adaptability, and relentless execution to outperform competition and inspire the team. Elon has demonstrated these unmatched leadership abilities time and time again with his unparalleled track record of delivering shareholder value since he joined as a founding figure and spearheaded the transformation of our extraordinary company.

And while these impending changes are exciting, the outcomes are not guaranteed. It is imperative to retain and motivate our extraordinary talent, beginning with Elon. The war for AI talent is intensifying, with recent months including multi-billion-dollar acquisitions of companies and nine-figure cash compensation packages for non-founder, individual AI engineers. Even among this group of highly talented individuals, no one matches Elon’s remarkable combination of leadership experience, technical expertise, and, arguably most importantly, decades-long proven track record of building the most revolutionary and profitable businesses across different industries. While we recognize that Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging, including his leadership roles at xAI, SpaceX, Neuralink, X Corp., and The Boring Company as well as his other interests, we are confident that this award will incentivize Elon to remain at Tesla and focus his unmatched leadership abilities on further creating shareholder value for Tesla shareholders and attracting and retaining talent at Tesla. To be clear, losing Elon would not only mean the loss of his talents but also the loss of a leader who is a magnet for hiring and retaining talent at Tesla.

The Special Committee believes now is the right time to take decisive action to recognize the extraordinary value that Elon created for Tesla shareholders. As such, the Board (with Elon and Kimbal Musk recusing themselves), has unanimously approved a recommendation from the Special Committee of the Board to grant Elon an award of restricted stock equal to approximately one-third of the compensation he earned under the 2018 CEO Performance Award.

The award provides the following provisions:

• 96 million restricted shares of stock, subject to Elon paying a purchase price upon meeting a two-year vesting term, to be delivered after receipt of antitrust regulatory approval;
• The purchase price will be equal to the split adjusted exercise price of the stock options awarded to Elon under the 2018 CEO Performance Award ($23.34 per share);
• A requirement that Elon serve continuously in a senior leadership role at Tesla during the two-year vesting term;
• A pledging allowance to cover tax payments or the purchase price;
• A mandatory holding period of five years from the grant date, except to cover tax payments or the purchase price (with any sales for such purposes to be conducted through an orderly disposition in coordination with Tesla); and
• If the Delaware courts fully reinstate the 2018 CEO Performance Award, this interim award will be forfeited or returned or a portion of the 2018 CEO Performance Award will be forfeited. To put it simply, there cannot be any “double dip.” Elon will not be able to keep this new award in addition to the options he will be awarded under the 2018 CEO Performance Award should the courts rule in our favor.

The Special Committee, consisting of the two of us, was formed earlier this year to consider how best to retain and incentivize Elon in a manner that aligned with the best interests of the Company. The Special Committee and the Board deliberated carefully over the decision to grant this interim award against the backdrop of the ever-intensifying AI talent war and Tesla’s position at a critical inflection point. We believe it directly addresses a top concern and priority for shareholders and the Board alike: energizing and focusing Elon on Tesla so he can propel Tesla into its next era of growth, while we continue the legal campaign to have the 2018 CEO Performance Award reinstated. This interim award is structured to incrementally increase his voting rights upon grant, which he has repeatedly told us—and shareholders have confirmed—is an important part of incentivizing him to stay focused on the critical work we are doing here at Tesla. We believe this is a vital consideration, and we used the tools currently available to us—our existing equity incentive plan—to grant this award.

We would also like to stress that prior to recommending this award, we reviewed your letters, read your X posts, and considered the direct feedback we have received from many of you in order to align our recommendation with your expressed views. From those communications, we know that one of your top concerns is keeping Elon’s energies focused on Tesla. This award is a critical first step toward achieving that goal, although it is limited by the capacity of our current equity incentive plan. As such, we are also working on next steps to address that issue. Still, while our work remains ongoing, we feel it is important to communicate directly and transparently with you all, our shareholders and Tesla’s owners.

The Special Committee continues our work to address a longer-term CEO compensation strategy, which we plan to put to a shareholder vote at the November 6 annual meeting.

Thank you for your continued support of Tesla and stay tuned for more information as we get closer to our shareholder meeting.

Very truly yours,

Robyn Denholm & Kathleen Wilson-Thompson

Members of the Special Committee of the Board of Directors