Investor's Corner
Elon Musk’s post as Tesla’s chairman is on the line at 2018 shareholders meeting
Tesla (NASDAQ:TSLA) is set to hold its 2018 Annual Shareholders Meeting at the Computer History Museum in Mountain View, CA on Tuesday. During the event, which is set to begin at 2:30 p.m. PST, shareholders are expected to hold a vote on a number of executive decisions that can affect the course of the company, including Elon Musk’s position as chairman of Tesla’s board.
Back in April, Tesla shareholder Jing Zhao, who owns 12 shares of the company’s common stock, submitted a proposal to remove and replace Musk as chairman. Musk had been serving as chairman of Tesla’s board for 14 years, starting his tenure in the position back in 2004. According to Zhao’s proposal, having Musk serve as both chairman and CEO at the same time would not be effective for the company as it begins to wade into far more competitive markets. The Tesla shareholder also cited Musk’s involvement with SpaceX and The Boring Company as potential sources of “conflicts” down the road.
Zhao’s proposal got support from proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis. The two agencies also supported the Union-affiliated investment adviser CtW Investment Group’s initiative, which called for the removal of three Tesla board members — Antonio Gracias, James Murdoch, and Kimbal Musk — in the upcoming shareholders meeting over their lack of relevant experience.
Elon Musk, however, might have some powerful supporters when the vote does happen on Tuesday. In a statement to Reuters, Morningstar analyst David Whiston noted that the chances of Musk being voted out of his chairman’s position are rather slim, considering that Tesla’s big investors are fully supporting the serial tech entrepreneur.
“I doubt they would vote against Elon because if you don’t believe in Elon, why are you in the stock?” he said.
One of Tesla’s Top 20 investors echoed the Morningstar analyst’s prediction. Speaking to the publication, the shareholder noted that they are “making a bet” on Elon Musk. The investor also compared Musk to past visionaries in the tech industry, such as Apple’s Steve Jobs.
“We’re making a bet on Elon Musk. These people are geniuses. You either believe in him or you don’t,” the investor said.
Ultimately, the results of Tuesday’s votation might be determined by the votes cast by funds run by T. Rowe Price Group and Fidelity Investments, both of which could be considered as wild cards among Tesla’s investors. T. Rowe Price owned about 9% of Tesla stock as of the end of March, while Fidelity Investments commanded 8%, making them two of Tesla’s biggest shareholders. A vote from these firms supporting or objecting to Musk’s removal from his chairman post could sway the decision either way.
Musk debuted the production ready Model 3 on June 28 and handed over the first 30 vehicles.
Tesla’s is currently taking on its biggest challenge to date — mass-producing the Model 3, its most disruptive vehicle yet. The compact electric car has had multiple setbacks over the past few quarters, but developments over the past month have been encouraging. Tesla, for one, has maintained its goal of producing the 5,000 Model 3 per week by the end of Q2 2018. Orders for the dual-motor AWD and Performance Model 3 have also been opened for reservation holders.
The company has also registered more than 18,000 new Model 3 VINs in May, a feat that took Tesla until March 2018 to accomplish. A leaked email from Elon Musk also revealed that Tesla has been producing a consistent rate of 500 Model 3 per day, or 3,500 vehicles per week. Lastly, reports at the end of May suggested that Tesla had flown in six airplanes’ worth of new robots and equipment from Europe in order to help address bottlenecks at Gigafactory 1.
Tesla shares are down 15% over the past 12 months, contrasting with the S&P 500 index, which has gained 12% and the Dow Jones Industrial Average, which has gained 16% during the same period.
As of writing, Tesla stock is trading up 1.55% at $296.35 per share.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
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