Tesla has the highest total revenue of any US company for the third quarter ending September 30, 2023, $28 billion. That’s a 12% increase from this time last year. The electric vehicle maker reported record revenue growth. Profits fell 37% over that same period.
That makes Tesla’s stock market valuation just shy of $1.4 trillion. What’s driving this surge? This increase is primarily driven by investors’ intense confidence in CEO Elon Musk. At the same time and under the same leadership, Tesla is rolling out some very radical plans. The company envisions itself as a future global leader in artificial intelligence (AI) and robotics. These ambitions have received an admirable amount of attention from stakeholders, investors included, which has only strengthened the company’s position in the market.
Aside from the fact that profits have fallen due to numerous reasons, though revenue figures have skyrocketed. Higher expenses due to tariffs and current research projects have played a role in this decline. Tesla is raising the standards of innovation in AI and robotics. While that’s a great position to be in, it has to continue to be strategic with its increasing costs to remain in the black.
In November, Tesla shareholders will vote on a new pay package for Musk that could be worth $1 trillion. This proposed compensation package underscores the high expectations placed on Musk as he leads the company through its transformative goals. The result of this vote has the potential to radically alter not just Musk’s fate in Tesla’s boardroom, but the company’s strategic path forward.