

Investor's Corner
Elizabeth Warren grills Tesla Board on Elon Musk’s alleged absence
Senator Elizabeth Warren (D, MA) has sent a letter to the Tesla Board of Directors, inquiring if Elon Musk’s alleged absence has negatively impacted investors.
Criticism of Tesla CEO Elon Musk has become common on the CEO’s new social media acquisition, Twitter. Many allege that the Tesla CEO has abandoned his post at the automaker while he has tackled issues at Twitter. Now, according to the New York Times, Sen. Elizabeth Warren of Massachusetts has reached out to the Tesla Board of Directors to see if the CEO’s possible absence has negatively impacted investors.
Sen. Warren’s letter sent on Sunday to Chairman Robyn Denholm begins by stating, “As you know, it is the legal obligation of Tesla’s board to ensure that its CEO is meeting all his legal responsibilities and serving as an effective leader.” To ensure that all of the aforementioned “legal responsibilities” have been met, Sen. Warren included a long list of questions regarding the current circumstance.
According to the New York Times, the questions were as follows. Has Elon Musk diverted resources from Tesla to Twitter, such as software engineers or developers? Is there a potential conflict of interest in Mr. Musk’s ownership of the two companies (NYT states 12 questions pertained to this topic)? Has Mr. Musk “shortchanged” one of the companies to benefit the other?
It remains unclear if the Tesla Board Member responded to the Senator’s inquiry; further, Mr. Musk’s leadership details have not yet been divulged. For instance, while not asked by Sen. Warren, it remains unclear how Mr. Musk has split his time between the two companies or if productivity has been affected at Tesla due to his potential absence.
Elon Musk responded via Twitter but did not answer the Senator’s questions. However, the Twitter CEO may make changes to correct the situation and potentially help slow Tesla’s stock value slide.
The United States has definitely been harmed by having her as a senator lol
— Elon Musk (@elonmusk) December 20, 2022
Elon Musk recently held a poll in which he asked if he should step down from the position of CEO at Twitter, to which he received an affirmative response. Later the same day, CNBC reported that Mr. Musk had begun searching for a replacement, yet in response to CNBC’s tweet, Mr. Musk responded as if that were not the case.
??
— Elon Musk (@elonmusk) December 20, 2022
While many continue to worry about Tesla’s stock price fall, it is essential to recognize that it is far from the only stock to do so. Other notable tech giants and blue chip stocks, like Microsoft, Johnson and Johnson, Uber, Apple, and Netflix, have all seen similar falls in value to varying degrees.
The path forward for Elon Musk, Twitter, and Tesla remains unclear. And while it is clear that Mr. Musk has an incentive to abandon his position at Twitter to return to Tesla and stage what could be an immense stock recovery, it’s not clear if he will do so. Expect eyes to be on Tesla earnings and Elon Musk as we approach the end of the year.
William owns Tesla stock and has money in numerous Index Funds that contain the Tesla stock.
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!
Elon Musk
Tesla blacklisted by Swedish pension fund AP7 as it sells entire stake
A Swedish pension fund is offloading its Tesla holdings for good.

Tesla shares have been blacklisted by the Swedish pension fund AP7, who said earlier today that it has “verified violations of labor rights in the United States” by the automaker.
The fund ended up selling its entire stake, which was worth around $1.36 billion when it liquidated its holdings in late May. Reuters first reported on AP7’s move.
Other pension and retirement funds have relinquished some of their Tesla holdings due to CEO Elon Musk’s involvement in politics, among other reasons, and although the company’s stock has been a great contributor to growth for many funds over the past decade, these managers are not willing to see past the CEO’s right to free speech.
However, AP7 says the move is related not to Musk’s involvement in government nor his political stances. Instead, the fund said it verified several labor rights violations in the U.S.:
“AP7 has decided to blacklist Tesla due to verified violations of labor rights in the United States. Despite several years of dialogue with Tesla, including shareholder proposals in collaboration with other investors, the company has not taken sufficient measures to address the issues.”
Tesla made up about 1 percent of the AP7 Equity Fund, according to a spokesperson. This equated to roughly 13 billion crowns, but the fund’s total assets were about 1,181 billion crowns at the end of May when the Tesla stake was sold off.
Tesla has had its share of labor lawsuits over the past few years, just as any large company deals with at some point or another. There have been claims of restrictions against labor union supporters, including one that Tesla was favored by judges, as they did not want pro-union clothing in the factory. Tesla argued that loose-fitting clothing presented a safety hazard, and the courts agreed.

(Photo: Tesla)
There have also been claims of racism at the Fremont Factory by a former elevator contractor named Owen Diaz. He was awarded a substantial sum of $137m. However, U.S. District Judge William Orrick ruled the $137 million award was excessive, reducing it to $15 million. Diaz rejected this sum.
Another jury awarded Diaz $3.2 million. Diaz’s legal team said this payout was inadequate. He and Tesla ultimately settled for an undisclosed amount.
AP7 did not list any of the current labor violations that it cited as its reason for
Investor's Corner
xAI targets $5 billion debt offering to fuel company goals
Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.
Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.
According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.
Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.
Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.
As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.
Elon Musk
Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge
Tesla’s future lies beyond cars—with robotaxis, humanoid bots & AI-driven factories. Cathie Wood predicts a 9x surge in 5 years.

Cathie Wood shared that Tesla is her top stock pick. During Steven Bartlett’s podcast “The Diary Of A CEO,” the Ark Invest founder highlighted Tesla’s innovative edge, citing its convergence of robotics, energy storage, and AI.
“Because think about it. It is a convergence among three of our major platforms. So, robots, energy storage, AI,” Wood said of Tesla. She emphasized the company’s potential beyond its current offerings, particularly with its Optimus robots.
“And it’s not stopping with robotaxis; there’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period,” she added.
In June 2024, Ark Invest issued a $2,600 price target for Tesla, which Wood reaffirmed in a March Bloomberg interview, projecting the stock to reach this level within five years. She told Bartlett that Tesla’s Optimus robots would drive productivity gains and create new revenue streams.
Elon Musk echoed Wood’s optimism in a CNBC interview last month.
“We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, beginning this fall. And we expect to scale Optimus up faster than any product, I think, in history to get to millions of units per year as soon as possible,” Musk said.
Tesla’s stock has faced volatility lately, hitting a peak closing price of $479 in December after President Donald Trump’s election win. However, Musk’s involvement with the White House DOGE office triggered protests and boycotts, contributing to a stock decline of over 40% from mid-December highs by March.
The volatility in Tesla stock alarmed investors, who urged Musk to refocus on the company. In a May earnings call, Musk responded, stating he would be “scaling down his involvement with DOGE to focus on Tesla.” Through it all, Cathie Wood and Ark Invest maintained their faith in Tesla. Wood, in particular, predicted that the “brand damage” Tesla experienced earlier this year would not be long term.
Despite recent fluctuations, Wood’s confidence in Tesla underscores its potential to redefine industries through AI and robotics. As Musk shifts his focus back to Tesla, the company’s advancements in Optimus and other innovations could drive it toward Wood’s ambitious $2,600 target, positioning Tesla as a leader in the evolving tech landscape.
-
News2 weeks ago
I took a Tesla Cybertruck weekend Demo Drive – Here’s what I learned
-
Elon Musk2 weeks ago
Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge
-
News2 weeks ago
First Tesla driverless robotaxi spotted in the wild in Austin, TX
-
Elon Musk2 weeks ago
X account with 184 followers inadvertently saves US space program amid Musk-Trump row
-
Elon Musk2 weeks ago
Tesla CEO Elon Musk reveals new details about Robotaxi rollout
-
Elon Musk1 week ago
Tesla sues former Optimus engineer for stealing trade secrets
-
News1 week ago
SpaceX produces its 10 millionth Starlink kit
-
News1 week ago
Tesla Robotaxi just got a big benefit from the U.S. government