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Tesla’s new chairman stands behind Elon Musk’s Twitter use: ‘He uses it wisely’

(Photo: MKBHD/YouTube)

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Tesla Chairman Robyn Denholm is speaking out in support of CEO Elon Musk and his polarizing Twitter use. In a rare interview, the new chair of Tesla’s board of directors defended Musk, stating that from her point of view, the CEO’s behavior on Twitter has been satisfactory.

“Twitter is part of everyday business for many executives today. From my perspective, he uses it wisely,” she said.

Denholm’s comments about the Tesla CEO followed a speech at the American Chamber of Commerce in Sydney, Australia on Wednesday. Addressing the ongoing issue between Elon Musk and the Securities and Exchange Commission, Denholm noted that she believes Tesla has been doing its best to comply with the terms of last year’s settlement with the agency.

“We believe we’ve done everything that we need to do under the settlement, but obviously it’s going to the court and it will go from there. I don’t think he poses any challenges. The company is running very well, and the board itself is very engaged. We meet with him all the time,” she added.

The new Tesla chair was appointed by the company last November following Elon Musk and the SEC’s settlement over the CEO’s now-infamous “funding secured” tweet, which resulted in a short-lived attempt to take the company private. As part of the agreement, Musk agreed to relinquish his position as chairman of Tesla’s board of directors.

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Denholm, a member of the company’s board since 2014, was selected as Musk’s replacement, though she has largely remained under the radar until her recent comments. Denholm is still serving as the chief financial officer of Australian telecom firm Telstra, a position she is set to relinquish on May 6. She is expected serve as Tesla’s Chairman on a full-time basis after.

Denholm’s words of support for Elon Musk comes amidst the CEO and the SEC’s ongoing skirmish. The SEC has argued that Musk must be held in contempt over a tweet posted last February 19 which stated that Tesla would make “around 500k cars” this year. The figure echoed Musk’s statements from the Q4 2018 earnings call last January, but the CEO nonetheless explained in a follow-up tweet that the 500k estimate would be true for Tesla’s annualized run rate.

The SEC has claimed that the Twitter post violates Musk’s settlement last September, which demanded that tweets with material information to Tesla shareholders must go through a review process before they are posted. Musk’s legal team countered that the CEO’s estimates in the February 19 tweet are not material information at all, since the estimated figures have been made public since the fourth quarter earnings call.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Investor's Corner

Barclays lifts Tesla price target ahead of Q3 earnings amid AI momentum

Analyst Dan Levy adjusted his price target for TSLA stock from $275 to $350, while maintaining an “Equal Weight” rating for the EV maker.

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Credit: Tesla China

Barclays has raised its price target for Tesla stock (NASDAQ: TSLA), with the firm’s analysts stating that the electric vehicle maker is approaching its Q3 earnings with two contrasting “stories.” 

Analyst Dan Levy adjusted his price target for TSLA stock from $275 to $350, while maintaining an “Equal Weight” rating for the EV maker.

Tesla’s AI and autonomy narrative

Levy told investors that Tesla’s “accelerating autonomous and AI narrative,” amplified by CEO Elon Musk’s proposed compensation package, is energizing market sentiment. The analyst stated that expectations for a Q3 earnings-per-share beat are supported by improved vehicle delivery volumes and stronger-than-expected gross margins, as noted in a TipRanks report.

Tesla has been increasingly positioning itself as an AI-driven company, with Elon Musk frequently emphasizing the long-term potential of its Full Self-Driving (FSD) software and products like Optimus, both of which are heavily driven by AI. The company’s AI focus has also drawn the support of key companies like Nvidia, one of the world’s largest companies today.

Still cautious on TSLA

Despite bullish AI sentiments, Barclays maintained its caution on Tesla’s underlying business metrics. Levy described the firm’s stance as “leaning neutral to slightly negative” heading into the Q3 earnings call, citing concerns about near-term fundamentals of the electric vehicle maker.

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Barclays is not the only firm that has expressed its concerns about TSLA stock recently. As per previous reports, BNP Paribas Exane also shared an “Underperform” rating on the company due to its two biggest products, the Robotaxi and Optimus, still generating “zero sales today, yet inform ~75% of our ~$1.02 trillion price target.” BNP Paribas, however, also estimated that Tesla will have an estimated 525,000 active Robotaxis by 2030, 17 million cumulative Optimus robot deliveries by 2040, and more than 11 million FSD subscriptions by 2030.

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BNP Paribas Exane initiates Tesla coverage with “Underperform” rating

The firm’s projections for Tesla still include an estimated 525,000 active Robotaxis by 2030.

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Credit: Tesla China

Tesla (NASDAQ: TSLA) has received a bearish call from BNP Paribas Exane, which initiated coverage on the stock with an Underperform rating and a $307 price target, about 30% below current levels. 

The firm’s analysts argued that Tesla’s valuation is driven heavily by artificial intelligence ventures such as the Robotaxi and Optimus, which are both still not producing any sales today.

Tesla’s valuation

In its note, BNP Paribas Exane stated that Tesla’s two AI-led programs, the Robotaxi and Optimus robots, generate “zero sales today, yet inform ~75% of our ~$1.02 trillion price target.” The research firm’s model projected a maximum bull-case valuation of $2.7 trillion through 2040, but after discounting milestone probabilities, its base-case valuation remained at $1.02 trillion.

The analysts described their outlook as optimistic toward Tesla’s AI ventures but cautioned that the stock’s “unfavorable risk/reward is clear,” adding that consensus earnings expectations for 2026 remain too high. Tesla’s market cap currently stands around $1.44 trillion with a trailing twelve-month revenue of $92.7 billion, which BNP Paribas argued does not justify Tesla’s P/E ratio of 258.59, as noted in an Investing.com report.

Tesla and its peers

BNP Paribas Exane’s report also included a comparative study of the “Magnificent Seven,” finding Tesla’s current market valuation as rather aggressive. “Our unique comparative analysis of the ‘Mag 7’ reveals the extreme nature of TSLA’s valuation, as the market implicitly says TSLA’s 2035 earnings (~55% of which will be driven by Robotaxi & Optimus, w/ zero sales now) have the same level of risk & value-appropriation as the ‘Mag 6’s’ 2026 earnings,” the firm noted.

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The firm’s projections for Tesla include an estimated 525,000 active Robotaxis by 2030, 17 million cumulative Optimus robot deliveries by 2040 priced above $20,000 each, and more than 11 million Full Self-Driving subscriptions by 2030. Interestingly enough, these seem to be rather optimistic projections for one of the electric vehicle maker’s more bearish estimates today.

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Investor's Corner

Tesla’s comfort level taking risks makes the stock a ‘must own,’ firm says

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Credit: Tesla

Tesla (NASDAQ: TSLA) had coverage initiated on it by a new firm this week, and analysts said that the company’s comfort level with taking risks makes it a “must own” for investors.

Melius Research and analyst Rob Wertheimer initiated coverage of the stock this week with a $520 price target and a “Buy” rating. The price target is about 20 percent higher than the current trading price as shares closed at $435 on Wednesday, up 1.38 percent on the day.

Wertheimer said in the note to investors that introduced their opinion on Tesla shares that the company has a lot going for it, including a prowess in AI, domination in its automotive division, and an incredible expertise in manufacturing and supply chain.

He wrote:

“We see Tesla shares as a must-own. The disruptive force of AI will wreck multitrillion-dollar industries, starting with auto. Under Musk’s leadership, the company is comfortable taking risks. It has manufacturing scale and supply chain expertise that robotics startups possess more by proxy. It can rapidly improve and scale autonomy in driving, the first major manifestation of AI in the physical world.”

However, there were some drawbacks to the stock, according to Wertheimer, including its valuation, which he believes is “challenging” given its fundamentals. He said the $1 trillion market cap that the company represented was “guesswork,” and not necessarily something that could be outlined on paper.

This has been discussed by other analysts in the past, too. Yale School of Management Senior Associate Dean Jeff Sonnenfeld recently called Tesla the “biggest meme stock we’ve ever seen,” by stating:

“This is the biggest meme stock we’ve ever seen. Even at its peak, Amazon was nowhere near this level. The PE on this, well above 200, is just crazy. When you’ve got stocks like Nvidia, the price-earnings ratio is around 25 or 30, and Apple is maybe 35 or 36, Microsoft around the same. I mean, this is way out of line to be at a 220 PE. It’s crazy, and they’ve, I think, put a little too much emphasis on the magic wand of Musk.”

Additionally, J.P. Morgan’s Ryan Brinkman said:

“Tesla shares continue to strike us as having become completely divorced from the fundamentals.”

Some analysts covering Tesla have said they believe the stock is traded on narrative and not necessarily fundamentals.

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