Business Insights and Market Implications Summary

Waymo Recall

• 1,200 vehicles recalled due to a software defect causing minor collisions with obstacles.
• Affected vehicles use the fifth-generation automated driving software.
• A software update has been released and deployed to all affected vehicles.
• The NHTSA is investigating 22 incidents involving Waymo's fifth-generation software.
• Despite scrutiny, Waymo reports its vehicles have fewer crashes than traditional vehicles.
• Waymo continues to expand its services, providing 250,000 paid trips weekly and planning expansion to Atlanta, Miami, and Washington, D.C.

Tesla CEO Pay

• Tesla's board is exploring a new compensation package for Elon Musk, potentially involving stock options.
• The board has formed a special committee, including Robyn Denholm and Kathleen Wilson-Thompson, to address the issue.
• Tesla is contesting the rescission of its $55 billion 2018 compensation package through appeals and new legislation.

Tesla Expansion

• Tesla opened a new dealership and service center in Flower Mound on May 12, 2025, offering sales and service.
• Tesla renewed an 82,000-square-foot lease for its Santa Monica, California, service shop, starting January 2026.
• The Los Angeles County industrial market remains strong due to proximity to the Ports of L.A. and Long Beach and high demand, benefiting Tesla's operations in California.