Tesla Motors has released a performance report indicating a significant decline in profits. However, CEO Elon Musk shifted the focus of the earnings call towards defending his billion-dollar compensation package, vehemently criticizing shareholder advisory firms that oppose it.

According to previous reports, Tesla's operating profit fell by 40% in the third quarter, failing to meet Wall Street expectations, highlighting ongoing pressures in its core electric vehicle business. After the earnings report, Musk abruptly interrupted the Chief Financial Officer's remarks at the conclusion of the call to defend his hefty compensation plan, emphasizing the importance of voting power to him.

The dismal performance and the unusual statements from management elicited a negative response from the market. Following the earnings announcement, Tesla's stock price dropped by 5.53%. Despite a nearly 9% increase in stock value year-to-date, its performance still lags behind the 14% rise of the S&P 500 index.

This dramatic conclusion stood in stark contrast to the earlier parts of the call, which focused on topics like artificial intelligence, humanoid robots, and autonomous driving. The crux of this issue, Musk's compensation plan, will be put to a vote at the annual shareholder meeting in Austin on November 6.

Under disappointing performance, advisory firms unanimously oppose the billion-dollar compensation Tesla's latest earnings report reveals that the company is facing severe financial challenges. Despite achieving record-high vehicle deliveries, operating profit in the third quarter still plunged by 40%.

The report indicates that the company's costs are rising sharply. Just last quarter, the impact of tariffs exceeded $400 million. During the same period, Tesla's operating expenses surged by 50%, reaching $3.4 billion. This series of data reflects the immense pressure the company's electric vehicle business is under in a rapidly changing U.S. policy environment.

Ahead of the shareholder vote, two influential shareholder advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis, have recommended that investors reject Musk's unprecedented compensation plan. According to reports, ISS expressed "irremediable concerns" regarding the scale and design of the award. Glass Lewis stated that the plan could dilute other shareholders' ownership. The value of this compensation plan is directly tied to Tesla's ability to meet a series of market capitalization and operational milestones.

"Not wanting to be ousted": Musk's Defense In the face of opposition, Musk passionately defended himself during the earnings call. He interrupted the CFO’s closing statements, stating he needs "enough voting control to have a strong influence but not so much that I go crazy and can't be fired."

Musk emphasized that for him, sufficient voting control is more important than monetary compensation:

"I just feel uncomfortable building a robot army here and then getting kicked out because of ISS and Glass Lewis's stupid suggestions, which they clearly don't understand at all."

After Musk concluded his remarks, Tesla's CFO Vaibhav Taneja resumed his closing statement, praising the special committee for the outstanding job done in designing the compensation plan. "The compensation won't be rewarded until shareholders see substantial returns," Taneja stated, urging shareholders twice to support the plan.

According to the Bloomberg Billionaires Index, the 54-year-old Musk is the world's richest person, with a net worth of approximately $455 billion.