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Tesla shareholders urge Board to take legal action against misleading media reports

Credit: Tesla Asia/X

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Misleading reports about Tesla and its leadership have pretty much been the norm for a very long time, but a number of TSLA shareholders are drawing the line in the sand. 

As per the shareholders in a letter to the Tesla Board of Directors, now is the time to hold news media outlets that publish misleading reports about the electric vehicle maker accountable.

The trigger:

  • Last week, a Tesla Cybertruck loaded with explosives was detonated in front of a Trump hotel in Las Vegas. The vehicle’s driver died and seven others were injured.
  • Elon Musk quickly clarified on X that the incident was the result of explosives that were detonated from the bed of the Cybertruck. Thus, the explosion was not in any way related to a fault in the all-electric pickup. 
  • Authorities later credited the Cybertruck for containing the explosion and preventing more damage in the area.
  • Despite this, news reports about the incident framed the narrative as a Cybertruck explosion killing one person.
  • Some headlines included “1 dead after a Cybertruck explodes outside Trump Hotel in Las Vegas,” “Tesla Cybertruck explodes outside Trump Las Vegas Hotel, killing driver,” and “Tesla Cybertruck explosion in front of Trump Hotel in Las Vegas leaves 1 dead, 7 injured.”

Musk’s comments:

  • Amid complaints from users on X and some Tesla shareholders that the story of the Cybertruck’s detonation was being misrepresented, Elon Musk mused that perhaps it is time for the electric vehicle maker to take legal action against media outlets that seemingly sabotage Tesla.
  • “Maybe it is time to do so,” Musk wrote in a response to X user Robby Starbuck, who called out the headlines about the incident.

Tesla shareholders’ letter:

  • Tesla shareholders have supported the idea of holding news outlets accountable. 
  • In a letter, the shareholders called on the Board of Directors to file legal action against media outlets that misrepresent Tesla news. 
  • Following is the TSLA shareholders’ letter: 
    • Dear Members of the Board:
    • As concerned Tesla shareholders, we are writing to express our deep concern regarding what appears to be a pattern of materially misleading press coverage about Tesla, its products, and operations. We believe these articles are negatively impacting shareholder value and warrant the Board’s attention.
    • Of particular concern are recent articles regarding the criminal event where firework mortars and camp fuel canisters exploded in the bed of a Cybertruck in Las Vegas. The reporting contained numerous apparent inaccuracies. These three articles were the most mentioned by us shareholders with regards to inaccurate reporting:
    • [to be filled out with survey results]
    • [to be filled out with survey results]
    • [to be filled out with survey results]
    • These and other major media outlets have often published articles containing factual inaccuracies about Tesla’s business operations, product capabilities, and market position.
    • While we all fully support and value press freedom, we believe there is a clear distinction between protected speech and demonstrably false statements that harm shareholder interests and our company.
    • We respectfully request that the Board commissions an independent analysis of recent press coverage to identify potentially actionable cases of material misrepresentation and evaluates potential legal remedies available to protect shareholder interests. We understand that engaging in legal action against press outlets requires careful consideration of multiple factors, including First Amendment protections, litigation costs, and potential public relations implications. However, we believe the Board has a fiduciary duty to evaluate all available options to protect shareholder interests when faced with demonstrably false information that may be damaging to the company’s value.
    • We would appreciate the Board’s consideration of these concerns and look forward to hearing your response on how Tesla plans to address this issue moving forward.
    • Sincerely,
    • Tesla Shareholders

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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

Tesla Board member and Airbnb co-founder loads up on TSLA ahead of robotaxi launch

Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member’s purchase.

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(Credit: Tesla)

Tesla Board member and Airbnb Co-Founder Joe Gebbia has loaded up on TSLA stock (NASDAQ:TSLA). The Board member’s purchase comes just over a month before Tesla is expected to launch an initial robotaxi service in Austin, Texas.

Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member in a post on social media.

The TSLA Purchase

As could be seen in a Form 4 submitted to the United States Securities and Exchange Commission (SEC) on Monday, Gebbia purchased about $1.02 million worth of TSLA stock. This was comprised of 4,000 TSLA shares at an average price of $256.308 per share.

Interestingly enough, Gebbia’s purchase represents the first time an insider has purchased TSLA stock in about five years. CEO Elon Musk, in response to a post on social media platform X about the Tesla Board member’s TSLA purchase, gave a nod of appreciation for Gebbia. “Joe rocks,” Musk wrote in his post on X.

Gebbia has served on Tesla’s Board as an independent director since 2022, and he is also a known friend of Elon Musk. He even joined the Trump Administration’s Department of Government Efficiency (DOGE) to help the government optimize its processes.

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Just a Few Weeks Before Robotaxi

The timing of Gebbia’s TSLA stock purchase is quite interesting as the company is expected to launch a dedicated roboatxi service this June in Austin. A recent report from Insider, citing sources reportedly familiar with the matter, claimed that Tesla currently has 300 test operators driving robotaxis around Austin city streets. The publication’s sources also noted that Tesla has an internal deadline of June 1 for the robotaxi service’s rollout, but even a launch near the end of the month would be impressive.

During the Q1 2025 earnings call, Elon Musk explained that the robotaxi service that would be launched in June will feature autonomous rides in Model Y units. He also noted that the robotaxi service would see an expansion to other cities by the end of 2025. “The Teslas that will be fully autonomous in June in Austin are probably Model Ys. So, that is currently on track to be able to do paid rides fully autonomously in Austin in June and then to be in many other cities in the US by the end of this year,” Musk stated. 

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Investor's Corner

Tesla hints at ‘Model 2’ & next-gen EV designs

Tesla’s Q1 2025 update confirms new models this year, with production tied to existing factory lines. Could it be time for the Model 2 debut?

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(Credit: Tesla)

During its Q1 2025 earnings call, Tesla executives hinted at the much-rumored “Model 2” and other next-gen EV designs.

Tesla slightly addressed whether or not it will be pushing forward with the debut of new models later this year in its latest earnings call. The company’s product development executive, Lars Moravy, shared some details about Tesla’s design process and the upcoming affordable models.

“We’re still planning to release models this year. As with all launches, we’re working through, like, the last minute issues that pop up. We’re knocking them down one by one. At this point, I would say that the ramp might be a little slower than we had hoped initially…But there’s nothing that’s blocking us from starting production within the next, within the timeline laid out in the opening remarks.

“And I will say it’s important to emphasize that, as we’ve said all along, the full utilization of our factories is the primary goal for these new products. And so the flexibility of what we can do within the form factor and, you know, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we’ve been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that’s why we’re focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.”

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In January, Tesla’s Chief Financial Officer Vaibhav Taneja teased several new product introductions for this year. There is at least one product that most Tesla supporters and investors are hoping to see: the company’s affordable vehicles, which have been dubbed by the EV community as the “Model 2” or “Model Q.”

Before Tesla’s Robotaxi event last year, many speculated that the company would also unveil its affordable next-gen vehicle. Gene Munster from Deepwater had expected Tesla to release a stripped-down version of the Model 3 as its affordable vehicle during the Robotaxi event. In the end, Tesla unveiled its Robotaxi vehicle and its Robovan design.

It’s been a while since the Robotaxi event, and Tesla has kept mum about its affordable vehicle. Considering its Q1 2025 performance, TSLA investors look forward to catalysts that could boost the stock.

The “Model 2” has been labeled a potential catalyst for Tesla. As such, TSLA investors and supporters have been itching for news about the new affordable vehicle. The main questions surrounding the “Model 2” revolve around its design and price. Based on Moravy’s statement, the “Model 2’s” design will heavily depend on Tesla’s current assembly lines and supply chain structures.

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Elon Musk

Tesla regains Piper Sandler’s confidence with Robotaxi plans & Q1 Results

Piper Sandler says Tesla delivered the best-case scenario for bulls. $TSLA has catalysts ahead to silence the bears.

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(Credit: Tesla)

Tesla gained Piper Sandler analyst Alexander Potter’s confidence following its Q1 2025 earnings call. Piper Sandler reaffirmed its Overweight rating and $400 TSLA price target, signaling optimism for the company’s robotaxi and affordable vehicle launches expected this year. The firm’s stance reflects Tesla’s resilience amid market challenges.

Despite expectations of weak Q1 financials, Tesla’s stock edged up in after-hours trading, defying skepticism. Piper Sandler’s Alexander Potter noted that the results met the hopes of Tesla supporters, particularly as the company held firm on its timelines. Potter emphasized that anticipation for robotaxi details and new vehicle launches should keep critics at bay, supporting the $400 target.

“In our preview last week, we predicted that (at best) Q1 would be a non-event. With the stock trading up slightly in the after-hours session, it appears our best-case scenario has materialized. Considering generally weak Q1 financials, we think this is the best result that TSLA bulls could’ve reasonably hoped for.

“In our view, the most important Q1 takeaway is this: Tesla didn’t hedge expectations re: launching Robotaxis or lower-priced vehicles in 1H25. With <2 months until the end of June, investors can look forward to some interesting catalysts in the weeks ahead. In our view, this alone should be enough to keep the bears at bay, at least until we have a better idea re: the details of Tesla’s new products, as well as the scale/scope of the Robotaxi launch,” wrote Potter.

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Wedbush Securities’ Dan Ives, a longtime TSLA bull, echoed Potter’s optimism for Tesla. Ives raised his price target for Tesla stock from $315 to $350 with a BUY rating. His Tesla upgrade came after Elon Musk’s announcement during the Q1 earnings call that he would reduce his involvement with DOGE, signaling a sharper focus on Tesla.

Tesla’s steady Q1 performance and unwavering commitment to its 2025 roadmap, including the Robotaxi launch and lower-priced models, bolster investor confidence. Piper Sandler’s analysis underscores Tesla’s ability to navigate a competitive electric vehicle market while advancing its technological edge. The upcoming Robotaxi launch and affordable vehicle introductions are pivotal, with analysts expecting these initiatives to drive stock value through 2025.

As Tesla prepares for these milestones, its stock movement reflects market trust in Musk’s vision. With Piper Sandler and Wedbush reaffirming bullish outlooks, Tesla’s strategic moves will remain under close scrutiny, positioning the company to capitalize on its innovation pipeline in a dynamic industry landscape.

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