{"id":128468,"title":"Tesla Shares Fall Nearly 4% in Early Frankfurt Trading","publisher":"Share Talk","author":"sharetalk","published":"2025-10-23T08:34:10+00:00","modified":"2025-10-23T08:36:05+00:00","canonical_url":"https://www.share-talk.com/tesla-shares-fall-nearly-4-in-early-frankfurt-trading/","markdown_url":"https://www.share-talk.com/tesla-shares-fall-nearly-4-in-early-frankfurt-trading.md","json_url":"https://www.share-talk.com/tesla-shares-fall-nearly-4-in-early-frankfurt-trading.json","category":"Automobiles, Parts & Engineering","categories":["Automobiles, Parts & Engineering","Blogs","Technology","Technology, Media & Telecoms"],"tags":["automaker","BYD","cars","china","Cybertruck","Donald Trump","electric car","Elon Musk","EVs","federal government","Huangpu River","Model 3","Model Y","shanghai","ShareHolders","Tesla","USA","vehicles"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/03/Elon-Musk.webp?fit=1200%2C800&ssl=1","format":"news","language":"en-GB","content":"**Tesla Shares Fall 4% in Frankfurt After Earnings Miss Despite Record Sales**\n\n**Tesla** shares **fell nearly 4%** in **early Frankfurt trading** this morning after the **electric vehicle maker** reported **quarterly earnings** that **missed Wall Street expectations**, despite achieving **record vehicle sales**.\n\nThe company’s results were hit by a **rush of electric vehicle purchases** ahead of the **expiry of a US tax credit**, as well as **declining margins** due to lower car prices and rising investment costs.\n\n**Victoria Scholar**, Head of Investment at **interactive investor**, said investors were unimpressed despite strong top-line growth:\n\n> “Tesla shares are under pressure in Frankfurt after investors shrugged off a 12% increase in third quarter revenue to $28.10 billion, beating analysts’ expectations. Instead, they were disappointed by its earnings per share, which hit 50 cents — below forecasts of 54 cents. Net income also plunged by 37% year-on-year to $1.37 billion, driven by lower electric vehicle prices.”\n\nScholar added that Tesla is also contending with **higher costs from its AI and robotics investments** and **headwinds linked to the expiry of EV tax credits** in the US.\n\nThe results highlight the **profitability challenges** Tesla faces amid **intensifying competition** in the global EV market and its **pivot toward next-generation technologies**.\n\n### **Elon Musk Urges Tesla Investors to Approve $1 Trillion Pay Deal Ahead of Key Vote**\n\n**Elon Musk** has called on **Tesla shareholders** to back his **$1 trillion pay package**, defending the controversial proposal during the closing minutes of the company’s **third-quarter earnings call** overnight.\n\nThe compensation plan, which will be **voted on next month**, would grant Musk **tranches of Tesla stock** tied to a series of **ambitious performance milestones** — potentially making it one of the largest executive pay deals in corporate history.\n\nAddressing investors, Musk insisted the proposal was **not about personal wealth**, but about ensuring he retains sufficient **voting power and influence** over Tesla’s long-term direction.\n\n> “The point is… there needs to be enough voting control to give a strong influence. But not so much that I can’t be fired if I go insane,” Musk said.\n\nThe remarks highlight the **delicate balance of power** between Musk and Tesla’s board as the company navigates an era of **slowing margins**, **intense EV competition**, and **heavy investment** in **AI and robotics**.\n\nThe proposed deal has drawn **sharp criticism** from governance experts and institutional investors, who argue it risks **over-concentrating control** in Musk’s hands. However, supporters claim it aligns his incentives with **long-term shareholder value creation**, given Tesla’s growth ambitions in **autonomous driving**, **AI infrastructure**, and **robotics technology**."}