Tesla posts record earnings but on one stock market number Elon Musk’s EV company is still disappointing

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4 years ago

October 21, 2021

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Tesla CEO Elon Musk and Christian Democratic Union (CDU) party leader Armin Laschet visit the construction site of Tesla’s Gigafactory in Gruenheide near Berlin, Germany, August 13, 2021.

Patrick Pleul | Reuters

Tesla CEO Elon Musk has said the fundamental good the electric car maker does will be measured in the acceleration of the world to sustainable energy.

Tesla’s role in the auto industry’s move to electrification is undeniable. Many major automakers are now investing billions in EV and battery manufacturing, and consumer interest in EVs continues to grow. While a Pew Research Center survey this summer found only 7% of U.S. adults currently had an electric or hybrid vehicle, 39% said they were considering an electric vehicle to be the next car they bought.

“One of the many things he did is he pushed the industry toward taking EV seriously,” former Ford CEO Mark Fields said of Musk.

Tesla didn’t surpass 1% share of new car sales until 2018, but during the first half of 2021, Tesla’s share of the all-electric segment of the auto market stood at about two-thirds.

“Profitability as a pure EV maker is an accomplishment in and of itself,” said Driss Lembachar, manager of transportation and infrastructure research at Morningstar’s Sustainalytics.

Tesla‘s stock price, now near-$900, and its rise to a near-$1 trillion company, shows that investors have been rewarded for sticking with a company that five years ago traded under $50 amid constant reporting on financial struggles.

But for ESG analysts including Lembachar, “There is some room for improvement.”

Beyond Tesla earnings and sales

As Tesla gets set to report its latest earnings on Wednesday and demand for its EVs show continued growth, its balance sheet becomes less volatile, and it ramps up manufacturing around the globe — including operations in Europe and China — its success is also an indication that Tesla has passed beyond its roots as a California start-up. It’s becoming a mature automaker. That is one reason ESG experts are watching closely to see how Musk’s company evolves in relation to investor concerns about environmental, social and governance issues.

Yana Kakar, global managing partner emeritus at Dalberg, said when the ESG debate is boiled down to a choice between whether the product a company produces is good, such as a Tesla EV, or the way it produces the product is good, that is a mistake.

“That’s a false dichotomy,” she said. “There is no necessary tradeoff. It is not a zero-sum game.”

How a company produces its products can be a reflection of the same values in the products it creates, and “that is entirely achievable,” Kakar said.

This debate over Tesla has a parallel to the rise of Silicon Valley companies that are “revolutionizing” industries and, as a result, have to keep their focus on that primary goal and not ESG.

“That attitude has been particularly prevalent in Silicon Valley,” said Jaakko Kooroshy, head of sustainable investment research at FTSE Russell. “But investors have come around to the view that a company can continue ‘saving the world’ and also have decent sustainability disclosures, and those disclosures do matter in the context of the company trying to save the world.” He added, “The line from Tesla for a very long time was ‘we are busy here saving the world so who cares about our emissions disclosures and corporate governance mechanisms.”

Tesla shareholders are pressing company on ESG

The recent Tesla annual shareholder meeting showed how investor pressure is being applied to the company, with a measure for diversity, equity and inclusion reporting approved by shareholders over management objections. The vote came shortly after a legal case in which a former Tesla contract worker sued over a hostile work environment and was awarded $137 million.

ESG experts say it is a sign that Tesla shareholders are making their voices heard, but it will be another year before ESG experts and shareholders can assess any changes made by Tesla in response to the shareholder measure. Shareholder measures are non-binding, and though corporate management often enacts changes in response to shareholder wins, it is not always with the scope or comprehensiveness that shareholders expected.

To date, in spite of all of the “good” the company is doing related to climate change, Tesla has not had the best ESG track record.

Paul Tudor Jones’ ESG firm JUST Capital ranks Tesla among the bottom 10% of all companies on ESG — its ESG methodology is weighted more heavily to broad social issues than climate specifically.

FTSE Russell has Tesla ranked last among carmakers globally on ESG issues.

Tesla did not respond to a request for comment on its ESG philosophy.

Environment and climate

ESG rating agencies, in the early days of the industry, don’t yet agree on how to assess Tesla even on the “E” of environment with which it is synonymous.

Lembachar said on the environmental pillar in ESG, “They are one of the best … it goes without saying they produce only cars without emissions, and they have been credited for that.”

But in 2018, FTSE Russell gave Tesla a “zero” on environment because even though its revenue sources are green and its cars are non-emitting, the company didn’t disclose its own operational emissions.

Historically, Tesla did not provide transparency in terms of reporting its Scope 1 and Scope 2 carbon emissions, water use, or waste management. But Tesla has improved as investors pressed for more information and it has started publishing more corporate disclosures in recent years, said Kooroshy, which has led to an improvement in Tesla’s environmental ranking in the FTSE Russell ESG analysis.

How Tesla deals with the waste it generates and its water usage, particularly as it is starting to scale around the world and provide millions of vehicles, does matter, he said. There are many ways to produce EVs, some cleaner and some more problematic, and supply chains and sourcing of raw materials such as cobalt, which goes into batteries, and human rights and labor issues in regions where minerals are sourced, need to be considered by investors as risk factors.

“What is clear is that Tesla has made some improvements, but compared to many of its peers in the auto industry, its environmental reporting is still fairly rudimentary,” Kooroshy said. “They are conscious of, and made commitments to disclose more data points in future, and as they do, when they do, we will see it reflected in those ratings.”

Labor

On balance, social and governance issues remain the major hurdles for Tesla. MCSI places Tesla above average in its rankings, but not as an ESG leader.

“If you look at labor management or product safety quality, we see some issues there,” said Arne Klug, vice president of ESG research at MSCI. “We couldn’t say that the company’s programs, in terms of labor management, or product safety, quality, are really aligned with its growth strategy based on our assessment.”

In March, the National Labor Relations Board ruled that Tesla violated federal labor laws while United Auto Workers and other unions tried to organize at its original plant in Fremont, California. The NLRB also found Tesla guilty of “coercively interrogating” three employees over unionizing activities, illegally firing another and disciplining another.

For JUST Capital, worker issues are one of the primary reasons Tesla gets “tripped” up in its rankings, Whittaker said. How a company supports local communities, what is it doing on diversity, and what it is doing on fair pay and worker issues, are all issues that JUST weighs more heavily than climate alone in its overall ESG rankings because Whittaker said, “the public weighs them highly.”

The labor issues will pose a material risk to Tesla as it expands around the world, Lembachar said, as they do for any company with global operations where a confrontation with a labor force at one site can increase the risk of more general strikes.

“Workforce issues can have more of an effect now that the company is getting out of this start-up stage and expanding around the world and in Europe, where there is a really strong union tradition,” he said. “The company must be prepared for labor-related risks and, according to us, must have stronger labor-related programs prepared to tackle issues related to the expansion of its workforce engine around the world.”

Autopilot as an ESG issue

Tesla is facing investigations from the National Highway Traffic Safety Administration regarding Autopilot, the automated driving technology currently in Tesla’s Models 3, S, X and Y in 2021.

While it may at first not seem obvious how self-driving is an ESG issue, it in fact falls within traditional categories that date all the way back to the days of Ralph Nader and “unsafe at any speed”: product safety and passenger safety.

Lembachar said Tesla’s full self-driving (FSD) is something his firm receives a lot of questions about as an ESG scoring metric, but he says it is simple: “Anything related to passenger safety is product governance and falls under the ‘Social’ pillar. Everything related to recalls, accidents, defects, responsibility of company is product governance.”

He was quick to point out that if self-driving works it may ultimately cut down on accidents by as much as 90%, and Tesla is potentially far ahead of competitors with the technology. But in a period of time when it is being scrutinized as the cause of accidents and fatalities, self-driving remains a product governance negative, and that metric has a heavy weighting for the auto industry. That hits other companies, too, such as GM after its recent recall on electric cars due to battery fire risk. And Lembacher said these issues have a material cost: for GM, more than $1 billion in the case of the recalls. “That is a very material issue,” he said.

Corporate governance and Tesla’ ESG future

Even though tweets may seem ephemeral, Musk’s confrontation with the Securities and Exchange Commission over controversial tweets can negatively impact the company’s corporate governance score.

“In terms of corporate governance, we see the confrontation between Musk and the SEC as problematic,” Lembacher said. “Tweets are problematic when they change the share price and that can be harmful for shareholders … and that’s why the SEC has been flagging it. There is a risk that the regulator at some point will sanction the company and since we are running a risk rating product, we have to flag this issue.”

Questions also remain about the company’s acquisition of SolarCity, which was controlled by Musk’s cousins (a legal case is ongoing brought by shareholders).

The corporate governance issues raise a bigger question about Musk’s impact on ESG ratings.

“It is not enough to say the company is being run by a ‘genius’ and as a result, ‘please don’t ask us too many questions,” Kooroshy said. “There is no doubt about the achievements of this company, particularly about accelerating the transition to sustainable energy. This is stuff for the history books, but at the end of the day, for investors trying to understand how much of a portfolio to invest in this company … not enough, he said. “It’s still not a free pass. … Making these disclosures doesn’t stop them from innovating.”

Kakar said Tesla’s mission of accelerating the transition to sustainable energy, and its focus on that as an argument in its defense, is implicitly a relative statement comparing itself to other automakers, and that is where the false tradeoff comes in. “It is terrific they are making EVs … but relative to the next guy is not the important point, and doesn’t obfuscate responsibility.”

Many ESG investors and ESG investment products today accentuate the “E” and climate specifically. “That’s where the action is at and investors have seen it as a good story, and if you think about environmental performance and climate as the big opportunities, you see Tesla as a big solution and will be attracted to it,” Whittaker said.

But as any company grows in scope and scale, the range of issues they have to contend with changes and investors will ask more about the “how” behind the growing business.

“That’s what is going to happen with Tesla as people become more aware of the social risk of how it operates,” Whittaker said. “It is bound to become more of an issue for investors and more of an operational risk for the company if it doesn’t perform well … more prominent in the overall calculus of company competitiveness and success.”

“That is not to say it won’t do well,” he added. “Musk is an incredible entrepreneur and business leader and I am sure if it becomes an issue he thinks will affect the value of the company or brand, he will respond accordingly. I expect it will become more of an issue for the management team to have to deal with.”

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It’s time to start recommending some Tesla Powerwall alternatives [update]

Published

13 hours ago

July 26, 2025

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It's time to start recommending some Tesla Powerwall alternatives [update]

Great batteries that aren't the Tesla Powerwall

For years, Tesla Powerwall has been the go-to recommendation for “normals” looking for a painless, low-effort experience from their first home solar and battery backup solutions. Its CEO’s recent involvement in controversial politics, however, means that people are now distancing themselves from the once-trailblazing company.

It begs the question: what other home solar battery solutions are there?

UPDATE 26JUL2025: added more options, put everything in alphabetical order.

Electricians and contractors often praise the sleek, energy-dense Tesla Powerwall, for good reasons. But the Powerwall isn’t the only top-shelf home battery on the market, but long wait times, Elon’s antics, and the proliferation of really good integrated alternatives from legacy EV brands might have you shopping for Tesla alternatives already. If that’s you, the next logical step is to re-think the brand’s solar battery offerings as well – here are some of the best options out there.

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As I was putting this list together, I realized there were plenty of ways for me to present this information. “Best batteries ..?” Too opinion-based. “Cheapest batteries ..?” Too much research and a quick descent into Temu-grade nonsense. In the end, I went with the same solution I’ve been using on my 0% EV financing lists: alphabetical order, by brand. Enjoy!

Bluetti EP800 + B500

Bluetti EP800 install photo; via Bluetti.

If you’re in a smaller space or renting and can’t (or don’t want to) add a hardwired battery solution to your home, Bluetti’s EP800 + B500 modular system is a sweet “middle ground” option that combines the Bluetti EP800 off-grid inverter and the company’s B500 battery packs in a floor-standing unit that can be used without a solar roof but also plays well with most rooftop PV options.

The basic EP800 + B500 package offers about 9.9 kWh of capacity for under $9,000 as I type this, and the system can scale up to nearly 20 kWh by adding more B500 packs. The system puts out 7.6 kW of power – more than enough, in other words, to keep some lights on and your fridge and foods (and meds) cold.

What’s more, it works great with Bluetti’s AC300 or AC500 gear if you want an option that’s a bit more portable if you move a lot or plan on moving soon.

EG4 14.3 kWh PowerPro

Two of the home solar installers I talked to in preparing this post mentioned the EG4 14.3kWh batteries, and its specs (on paper, at least) compare nicely with the Powerwall 3.

Battery	Usable capacity (kWh)	Continuous power output (kW)	Roundtrip efficiency	Average price per kWh*	Coupling
Tesla Powerwall 3	13.5	11.5	97.5%	$926	DC or AC
EG4 14.3kWh PowerPro	11.44	10.24	99%	$786	DC

“The EG4 PowerPro solar battery from EG4 Electronics is the strongest alternative to the Tesla Powerwall,” writes Kristina Zagame, from the home solar experts at EnergySage. “(The EG4) has a similar capacity, meaning it’ll last a similar amount of time, and a slightly lower power output, which means it won’t be able to power quite as many devices at the same time. And, based on quotes through EnergySage, EG4 batteries tend to be a bit more affordable compared to Tesla.”

Enphase IQ Battery 10

If you’re looking for a one-brand solution for EV charging and whole-home battery backup but don’t want to be “locked in” to GM or Tesla’s ecosystem, Enphase offers a full line of Made-in-the-USA solutions that could be right for you.

“Energy systems developer Enphase Energy is providing an even more holistic approach to managing home power usage with the introduction of new EV charger technology called the IQ line,” wrote Scooter doll, when the brand first introduced its EV charging solutions back in 2023. “The Enphase IQ is Wi-Fi enabled and integrates seamlessly into a customer’s existing home system that can be controlled with your phone.”

Franklin WH aPower 2

Franklin aPower2 home battery; via Franklin WH.

If you love the sleek, minimalistic styling of the Tesla Powerwall 3 but still prefer to spend your money elsewhere, the Franklin WH aPower 2 offers similarly sleek styling and beats the Tesla offering on usable energy storage capacity by 1.5 kWh. That’s nearly a full day of keeping a modern refrigerator running.

The Franklin is also designed to be easily retrofit into an existing solar system, but it loses out to the Powerwall on price per kWh, at $1,176 (vs. $926 for the Tesla unit).

GM Energy Home System

Arguably the most fully integrated EV + battery backup + solar option out there outside of Tesla, the GM Energy Home System promises to do everything a conventional home solar battery does, plus work seamlessly with your GM EV to provide even more flexibility – whether that means using the electric fuel stored in your EV to hold out that much longer in an emergency, or using the energy stored in your home’s solar battery to power an escape in your EV is up to you.

GM Energy and GM’s car dealers list Qmerit as their installation partner, and they’re great, but if you “already have a guy,” you can order the Home System directly from GM Energy’s website for $12,700 (as I type this).

The GM Energy Home System system includes:

GM Energy PowerBank
GM Energy PowerShift Charger
GM Energy Home Hub & Inverter

StorEn vanadium flow BESS

StorEn Vanadium Flow Batteries — Vanadium flow batteries; via StorEn Technologies.

If lithium-ion’s ten-year cycle life or overhyped fire risk makes you nervous, StorEn Technologies is developing a consumer-focused battery solution based on vanadium flow chemistry. Their system promises to last 25 years or more with no capacity loss, so you can charge and drain the battery fully each day and without stressing about wear … but there are a couple of downsides.

First, they’re not yet available to the general public – only to StorEn’s early investors in (what I understand to be) a sort of quasi-Kickstarter deal.

Second, the StorEn batteries are significantly bulkier than a Powerwall. That said, if you’ve got the room and you’re old enough to realize that 25 years isn’t actually a super long time, the StorEn solution might to be a super compelling, nearly maintenance-free setup that might outlast both your solar panels and the roof they’re mounted on.

So, remember how I started this off saying that I wouldn’t turn this into a “best batteries” post? That’s partly driven by the fact that I’m neither an electrician, a chemical engineer, or someone who’s researched thousands of end-user experience surveys to come up with whatever metrics I’d need to confidently and correctly call one battery “the best.”

Our friends and solar industry experts at EnergySage, though? They’ve got all three of those things on staff, and they really, really like the Villara VillaGrid+.

“The Villara VillaGrid+ stands out as the best battery on the market, scoring highest in EnergySage’s rigorous Equipment Rating System, explains EnergySage’s Kristina Zagame. “That said, (the Villara VillaGrid+) is not necessarily the best Tesla Powerwall alternative. It’s a very different (and much pricier) battery.”

What puts the VillaGrid+ on top? According to Zagame, it all comes down to the battery’s lithium-titanium-oxide, or LTO chemistry. “Unlike more traditional lithium-ion batteries, LTO has better recharge capabilities for longer life cycles, and doesn’t contain any carbon, which makes it extra safe. The only downside is you’ll definitely shell out more money upfront for the VillaGrid+.”

That extra money will also buy some additional peace of mind, as Villara backs its LTO batteries with a 20-year warranty compared to Tesla Powerwall and its (and just about everyone else’s) 10-year deal. I couldn’t find a price, but Villara’s other products, like VillaGrid 5.75 kWh battery, come in at nearly double Powerwall’s per kWh cost. Check out the specs, below, then let us know if you think the novel chemistry and additional warranty are worth it in the comments.

Battery	Usable capacity (kWh)	Continuous power output (kW)	Roundtrip efficiency	Average price per kWh*	Coupling
Tesla Powerwall 3	13.5	11.5	97.5%	$926	DC or AC
Villara VillaGrid+	11.5	10	98.5%	Get quote	DC or AC

Original content from Electrek.

If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.

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Vertical Aerospace completes first ever public airport-to-airport eVTOL flight

Published

15 hours ago

July 26, 2025

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Vertical Aerospace completes first ever public airport-to-airport eVTOL flight

Vertical Aerospace eVTOL completes historic airport-to-airport flight

Air taxi startup Vertical Aerospace achieved a world’s first this week, completing the first flight between two airports through public airspace for an eVTOL at the Royal International Air Tattoo in Gloucestershire, England.

The Royal International Air Tattoo (RIAT) is the world’s largest military airshow, held every July and serving as a public showcase for the latest advancements in aviation technology. It’s fitting, then, that RIAT served as setting for the Vertical VX4 prototype’s first piloted public flight.

The eVTOL aircraft flew 17 miles from the company’s Flight Test Centre at Cotswold Airport to RAF Fairford, a Royal Air Force station used by the US Air Force. The Vertical VX4 reached speeds of 115 mph, and an altitude of 1800 ft, and also marked the first landing at a public location for an aircraft of this type.

The Vertical Aerospace entry was the only battery-electric aircraft present at RIAT 2025, and the flight served as a demonstration of the company’s broader strategy to unlock new hybrid-electric applications for defense, logistics, and special/close support missions where the eVTOL’s (relatively) quiet operations could give it a tactical advantage.

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“RIAT is a global stage for the most advanced, mission-ready aerospace technology, and we’re proud to showcase how electric aviation will support the future of defense,” says Stuart Simpson, CEO of Vertical Aerospace. “Our hybrid-electric roadmap unlocks new capabilities for military operations, and Vertical’s RIAT presence reinforces our commitment to playing a meaningful role in the future of military and special mission aviation.”

Vertical’s VX4 debuted last year, with a 20% increase in the power-to-weight ratio that enables a top cruising speed of 150 mph and transports four passengers plus a pilot up to 100 miles on a single charge.

The inaugural VX4 flight was witnessed by several thousand UK aircraft enthusiasts, and showed how an eVTOL aircraft could integrate with real-world airport operations, building momentum toward more regular, certified deployment.

Electrek’s Take

Archer, BETA, EHang, Joby, XPeng – the list of eVTOL manufacturers seems to be as long as the list of new electric car brands that didn’t exist back when I first started working with EVs back in ::gulp:: the 1990s. The future of regional point-to-point air travel certainly seems to be vertical, and electric.

SOURCE | IMAGES: Vertical Aerospace.

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Honda takes a page from Tesla playbook, launches new insurance business

Published

18 hours ago

July 26, 2025

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Honda takes a page from Tesla playbook, launches new insurance business

Honda launches in-house insurance agency for U.S. drivers

Say what you will about Elon Musk, but Tesla has changed the way that millions of people buy cars and, by extension, car insurance. Now, Honda is taking a page from Tesla’s successful playbook and launching its own in-house insurance business. Enter: Honda Insurance Solutions.

Honda Insurance Solutions is being launched as a fully licensed insurance agency serving the insurance needs of Acura and Honda customers, but it’s not stopping at competitive pricing and coverage options for Honda cars and motorcycles. Honda Insurance Solutions promises to go several steps beyond Tesla’s offering with coverage for trailers, RVs, homes, and even pets.

“Honda Insurance Solutions offers customers access to coverage through a brand they know and trust,” says Petar Vucurevic, President, American Honda Insurance Solutions, LLC and Senior Vice President, American Honda Finance Corporation. “Insurance is a key touchpoint in the vehicle ownership journey, and we aim to deliver a superior experience tailored to the unique needs of each customer, while promoting safer driving and increased peace of mind on the road.”

The company says the launch of its new insurance business is just part of Honda’s broader digital vehicle sales platform strategy, with future plans to integrate insurance offerings into new products.

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Electrek’s Take

It’s important to note some of the key differences between Honda’s insurance offering and Tesla’s. Honda isn’t offering discounts, they’re not bundling insurance premiums into the vehicle financing, and they’re not building their insurance offerings into their dealerships’ checkout/F&I offices. Not yet, anyway.

What Honda is doing right now is deepening relationships with its existing customers and finding ways to make money on products it hasn’t sold them – whether that’s the Harley parked in the garage next to their Prologue or the garage itself.

It’s a smart play. And, once Honda figures out a way to cut franchise dealers out entirely and go to a direct sales model, it’ll look even smarter.

SOURCE | IMAGES: Honda.

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