Investor's Corner

Tesla’s (TSLA) fundamental difference on Wall St., and competitors can’t keep up

(Photo: Andres GE)

Published

5 years ago

December 12, 2020

Joey Klender

Tesla has enjoyed a significant rally on Wall Street in 2020. The meteoric rise of a once-small, likely unsuccessful automotive company is truly a prime example of the American economy working to the advantage of the dreamer. At one time, Tesla was out of money and had to plead for investors to funnel in more funds to keep its doors open. Years later, the company is the hottest stock in the American economy, up 650% on the year, despite not having more than two operational car production facilities.

Some may ask: Why is this small, relatively new car company running amok in the industry? What do they have that the competitors don’t? Why is Tesla so much more appealing to investors now than any other company? There are a lot of responses that may adequately answer any of these questions. But the real answer that generally covers all of these bases is that Tesla is more about the message than the money. While the supremely high valuation spells something as large as Apple or Facebook, Tesla is leading a charge in an industry full of attractive names. The fact is, Tesla has the shiniest name of all.

Perhaps, in the field of sustainable energy companies, there may be some real players that hold significant amounts of power. But the fact is, none of the names, or Tesla, were taken seriously up until a few years ago. Sustainable energy and the idea of sourcing power from the sun, wind, and other clean outlets was not a broadly accepted idea in the United States. While wind farms and solar panels have existed all over this country, the idea of powering anything from a house to a business with something other than coal or natural gas wasn’t a big thing, especially in Pennsylvania, where I am from.

But now, the idea of having sustainable sources of energy are translating into a nationwide phenomenon. And when trends begin to turn, the investor begins to see dollar signs. The thing is this: the sustainable energy movement is here, and it’s been here, and it’s only going to get bigger. More people will begin using solar panels because they’re becoming more affordable for the average American to purchase. More people will begin driving electric cars because they are becoming more affordable, they require less maintenance, and there are more environmental advantages. This is where the industry of sustainable energy becomes more competitive, and more companies are looking for their slice of the pie.

How Tesla’s Solar program has become the cheapest in the US

The problem for companies that have a history of using non-sustainable products is that their name is tarnished, and it would require a new identity to expunge the investor’s mind of negative thoughts. On the other hand, the companies that don’t have that past, like Tesla, for example, bring a conditioned picture of an electric car and sustainable products to the investor’s head. And the average investor will be more prone to purchase products from an exciting and somewhat proven company than from one that is transitioning from gas to electric and basically has to reestablish itself from the ground up.

The sentiment on companies that have a sustainable name has changed. Once “dead end” companies that have exploded into real industry players, they are more appealing to the common investor. People are not thinking about their dollars right now; they’re thinking about the future. Tesla’s mission is about the future, and people are investing their money in TSLA shares because they know where the future is headed. They also know who is leading them there, and that is the company that is going to get the shares bought and see the stock price increase. Clean energy has been around for decades, but it’s always been a second-thought because gas and oil have provided jobs and economic stability. There’s no reason that the U.S. sustainable energy market can’t do the same thing, and it will if jobs are kept on American soil.

The act of having investors forget about the sustainable energy movement is over, and Tesla has essentially ended the stigma on clean energy stocks, proving they can be winners and big ones at that.

Tesla’s effort in R&D and innovation also has helped the stock price, obviously. But, the common investor is also driving up demand for the stock. That’s why TSLA’s $5 billion offering was snapped up in a matter of a day and a handful of hours.

Investor's Corner

Shareholder group urges Nasdaq probe into Elon Musk’s Tesla 2025 CEO Interim Award

The SOC Investment Group represents pension funds tied to more than two million union members, many of whom hold shares in TSLA.

Published

1 week ago

August 22, 2025

Simon Alvarez

Credit: xAI/X

An investment group is urging Nasdaq to investigate Tesla (NASDAQ:TSLA) over its recent $29 billion equity award for CEO Elon Musk.

The SOC Investment Group, which represents pension funds tied to more than two million union members—many of whom hold shares in TSLA—sent a letter to the exchange citing “serious concerns” that the package sidestepped shareholder approval and violated compensation rules.

Concerns over Tesla’s 2025 CEO Interim Award

In its August 19 letter to Nasdaq enforcement chief Erik Wittman, SOC alleged that Tesla’s board improperly granted Musk a “2025 CEO Interim Award” under the company’s 2019 Equity Incentive Plan. That plan, the group noted, explicitly excluded Musk when it was approved by shareholders. SOC argued that the new equity grant effectively expanded the plan to cover Musk, a material change that should have required a shareholder vote under Nasdaq rules.

The $29 billion package was designed to replace Musk’s overturned $56 billion award from 2018, which the Delaware Chancery Court struck down, prompting Tesla to file an appeal to the Delaware Supreme Court. The interim award contains restrictions: Musk must remain in a leadership role until August 2027, and vested shares cannot be sold until 2030, as per a Yahoo Finance report.

Even so, critics such as SOC have argued that the plan does not have of performance targets, calling it a “fog-the-mirror” award. This means that “If you’re around and have enough breath left in you to fog the mirror, you get them,” stated Brian Dunn, the director of the Institute for Comprehension Studies at Cornell University.

They don’t even HAVE an investment with Tesla. They are just a political activist group using a loose relationship with a “coalition of unions” to write letters to advance an agenda that IS NOT making Tesla and AI, robotics and energy leader. Their letter does not include any…— Amy (@_SFTahoe) August 21, 2025

SOC’s Tesla concerns beyond Elon Musk

SOC’s concerns extend beyond the mechanics of Musk’s pay. The group has long questioned the independence of Tesla’s board, opposing the reelection of directors such as Kimbal Musk and James Murdoch. It has also urged regulators to review Tesla’s governance practices, including past proposals to shrink the board.

SOC has also joined initiatives calling for Tesla to adopt comprehensive labor rights policies, including noninterference with worker organizing and compliance with global labor standards. The investment group has also been involved in webinars and resolutions highlighting the risks related to Tesla’s approach to unions, as well as labor issues across several countries.

Tesla has not yet publicly responded to SOC’s latest letter, nor to requests for comment.

The SOC’s letter can be viewed below.

Nasdaq+Letter Tsla Socig Final by Simon Alvarez

Investor's Corner

Tesla investors may be in for a big surprise

All signs point toward a strong quarter for Tesla in terms of deliveries. Investors could be in for a surprise.

Published

2 weeks ago

August 14, 2025

Joey Klender

(Credit: Tesla)

Tesla investors have plenty of things to be ecstatic about, considering the company’s confidence in autonomy, AI, robotics, cars, and energy. However, many of them may be in for a big surprise as the end of the $7,500 EV tax credit nears. On September 30, it will be gone for good.

This has put some skepticism in the minds of some investors: the lack of a $7,500 discount for buying a clean energy vehicle may deter many people from affording Tesla’s industry-leading EVs.

Tesla warns consumers of huge, time-sensitive change coming soon

The focus on quarterly deliveries, while potentially waning in terms of importance to the future, is still a big indicator of demand, at least as of now. Of course, there are other factors, most of them economic.

The big push to make the most of the final quarter of the EV tax credit is evident, as Tesla is reminding consumers on social media platforms and through email communications that the $7,500 discount will not be here forever. It will be gone sooner rather than later.

It appears the push to maximize sales this quarter before having to assess how much they will be impacted by the tax credit’s removal is working.

Delivery Wait Time Increases

Wait times for Tesla vehicles are increasing due to what appears to be increased demand for the company’s vehicles. Recently, Model Y delivery wait times were increased from 1-3 weeks to 4-6 weeks.

This puts extra pressure on consumers to pull the trigger on an order, as delivery must be completed by the cutoff date of September 30.

Delivery wait times may have gone up due to an increase in demand as consumers push to make a purchase before losing that $7,500 discount.

More People are Ordering

A post on X by notable Tesla influencer Sawyer Merritt anecdotally shows he has been receiving more DMs than normal from people stating that they’re ordering vehicles before the end of the tax credit:

Anecdotally, I’ve been getting more DMs from people ordering Teslas in the past few days than I have in the last couple of years. As expected, the end of the U.S. EV credit next month is driving a big surge in orders.

Lease prices are rising for the 3/Y, delivery wait times are… pic.twitter.com/Y6JN3w2Gmr

— Sawyer Merritt (@SawyerMerritt) August 13, 2025

It’s not necessarily a confirmation of more orders, but it could be an indication that things are certainly looking that way.

Why Investors Could Be Surprised

Tesla investors could see some positive movement in stock price following the release of the Q3 delivery report, especially if all signs point to increased demand this quarter.

We reported previously that this could end up being a very strong rebounding quarter for Tesla, with so many people taking advantage of the tax credit.

Whether the delivery figures will be higher than normal remains to be seen. But all indications seem to point to Q3 being a very strong quarter for Tesla.

Elon Musk

Tesla bear Guggenheim sees nearly 50% drop off in stock price in new note

Tesla bear Guggenheim does not see any upside in Robotaxi.

Published

2 weeks ago

August 14, 2025

Joey Klender

Credit: Tesla

Tesla bear Guggenheim is still among the biggest non-believers in the company’s overall mission and its devotion to solving self-driving.

In a new note to investors on Thursday, analyst Ronald Jewsikow reiterated his price target of $175, a nearly 50 percent drop off, with a ‘Sell’ rating, all based on skepticism regarding Tesla’s execution of the Robotaxi platform.

A few days ago, Tesla CEO Elon Musk said the company’s Robotaxi platform would open to the public in September, offering driverless rides to anyone in the Austin area within its geofence, which is roughly 90 square miles large.

Tesla CEO Elon Musk confirms Robotaxi is opening to the public: here’s when

However, Jewsikow’s skepticism regarding this timeline has to do with what’s going on inside of the vehicles. The analyst was willing to give props to Robotaxi, saying that Musk’s estimation of a September public launch would be a “key step” in offering the service to a broader population.

Where Jewsikow’s real issue lies is with Tesla’s lack of transparency on the Safety Monitors, and how bulls are willing to overlook their importance.

Much of this bullish mentality comes from the fact that the Monitors are not sitting in the driver’s seat, and they don’t have anything to do with the overall operation of the vehicle.

Musk also said last month that reducing Safety Monitors could come “in a month or two.”

Instead, they’re just there to make sure everything runs smoothly.

Jewsikow said:

“While safety drivers will remain, and no timeline has been provided for their removal, bulls have been willing to overlook the optics of safety drivers in TSLA vehicles, and we see no reason why that would change now.”

He also commented on Musk’s recent indication that Tesla was working on a 10x parameter count that could help make Full Self-Driving even more accurate. It could be one of the pieces to Tesla solving autonomy.

Jewsikow added:

“Perhaps most importantly for investors bullish on TSLA for the fleet of potential FSD-enabled vehicles today, the 10x higher parameter count will be able to run on the current generation of FSD hardware and inference compute.”