Investor's Corner
Tesla shareholders urge Board to take legal action against misleading media reports
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.”
Maybe it is time to do so https://t.co/2i4q5QZOUn— Elon Musk (@elonmusk) January 2, 2025
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
Ok— Elon Musk (@elonmusk) January 3, 2025
- Tesla CEO Elon Musk has seemingly supported the shareholders’ efforts, responding with a short “Ok” on X.
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Tesla bear Michael Burry got blunt with his beliefs over the company’s valuation, which he called “ridiculously overvalued” in a newsletter to subscribers this past weekend.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry, who was the inspiration for the movie The Big Short, and was portrayed by Christian Bale.
Burry went on to say, “As an aside, the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots — until competition shows up.”
Tesla bear Michael Burry ditches bet against $TSLA, says ‘media inflated’ the situation
For a long time, Burry has been skeptical of Tesla, its stock, and its CEO, Elon Musk, even placing a $530 million bet against shares several years ago. Eventually, Burry’s short position extended to other supporters of the company, including ARK Invest.
Tesla has long drawn skepticism from investors and more traditional analysts, who believe its valuation is overblown. However, the company is not traded as a traditional stock, something that other Wall Street firms have recognized.
While many believe the company has some serious pull as an automaker, an identity that helped it reach the valuation it has, Tesla has more than transformed into a robotics, AI, and self-driving play, pulling itself into the realm of some of the most recognizable stocks in tech.
Burry’s Scion Asset Management has put its money where its mouth is against Tesla stock on several occasions, but the firm has not yielded positive results, as shares have increased in value since 2020 by over 115 percent. The firm closed in May.
In 2020, it launched its short position, but by October 2021, it had ditched that position.
Tesla has had a tumultuous year on Wall Street, dipping significantly to around the $220 mark at one point. However, it rebounded significantly in September, climbing back up to the $400 region, as it currently trades at around $430.
It closed at $430.14 on Monday.
Investor's Corner
Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected.
Mizuho analyst Vijay Rakesh lowered Tesla’s (NASDAQ:TSLA) price target to $475 from $485, citing potential 2026 EV subsidy cuts in the U.S. and China that could pressure deliveries. The firm maintained its Outperform rating for the electric vehicle maker, however.
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected. The U.S. accounted for roughly 37% of Tesla’s third-quarter 2025 sales, while China represented about 34%, making both markets highly sensitive to policy shifts. Potential 50% cuts to Chinese subsidies and reduced U.S. incentives affected the firm’s outlook.
With those pressures factored in, the firm now expects Tesla to deliver 1.75 million vehicles in 2026 and 2 million in 2027, slightly below consensus estimates of 1.82 million and 2.15 million, respectively. The analyst was cautiously optimistic, as near-term pressure from subsidies is there, but the company’s long-term tech roadmap remains very compelling.
Despite the revised target, Mizuho remained optimistic on Tesla’s long-term technology roadmap. The firm highlighted three major growth drivers into 2027: the broader adoption of Full Self-Driving V14, the expansion of Tesla’s Robotaxi service, and the commercialization of Optimus, the company’s humanoid robot.
“We are lowering TSLA Ests/PT to $475 with Potential BEV headwinds in 2026E. We believe into 2026E, US (~37% of TSLA 3Q25 sales) EV subsidy cuts and China (34% of TSLA 3Q25 sales) potential 50% EV subsidy cuts could be a headwind to EV deliveries.
“We are now estimating TSLA deliveries for 2026/27E at 1.75M/2.00M (slightly below cons. 1.82M/2.15M). We see some LT drivers with FSD v14 adoption for autonomous, robotaxi launches, and humanoid robots into 2027 driving strength,” the analyst noted.
Tesla stock (NASDAQ: TSLA) has landed an elusive “must own” status from Wall Street firm Melius, according to a new note released early this week.
Analyst Rob Wertheimer said Tesla will lead the charge in world-changing tech, given the company’s focus on self-driving, autonomy, and Robotaxi. In a note to investors, Wertheimer said “the world is about to change, dramatically,” because of the advent of self-driving cars.
He looks at the industry and sees many potential players, but the firm says there will only be one true winner:
“Our point is not that Tesla is at risk, it’s that everybody else is.”
The major argument is that autonomy is nearing a tipping point where years of chipping away at the software and data needed to develop a sound, safe, and effective form of autonomous driving technology turn into an avalanche of progress.
Wertheimer believes autonomy is a $7 trillion sector,” and in the coming years, investors will see “hundreds of billions in value shift to Tesla.”
A lot of the major growth has to do with the all-too-common “butts in seats” strategy, as Wertheimer believes that only a fraction of people in the United States have ridden in a self-driving car. In Tesla’s regard, only “tens of thousands” have tried Tesla’s latest Full Self-Driving (Supervised) version, which is v14.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
When it reaches a widespread rollout and more people are able to experience Tesla Full Self-Driving v14, he believes “it will shock most people.”
Citing things like Tesla’s massive data pool from its vehicles, as well as its shift to end-to-end neural nets in 2021 and 2022, as well as the upcoming AI5 chip, which will be put into a handful of vehicles next year, but will reach a wider rollout in 2027, Melius believes many investors are not aware of the pace of advancement in self-driving.
Tesla’s lead in its self-driving efforts is expanding, Wertheimer says. The company is making strategic choices on everything from hardware to software, manufacturing, and overall vehicle design. He says Tesla has left legacy automakers struggling to keep pace as they still rely on outdated architectures and fragmented supplier systems.
Tesla shares are up over 6 percent at 10:40 a.m. on the East Coast, trading at around $416.
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