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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 could save $2.5B by replacing 10% of staff with Optimus: Morgan Stanley

Jonas assigned each robot a net present value (NPV) of $200,000.

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Credit: Tesla Optimus/X

Tesla’s (NASDAQ:TSLA) near-term outlook may be clouded by political controversies and regulatory headwinds, but Morgan Stanley analyst Adam Jonas sees a glimmer of opportunity for the electric vehicle maker. 

In a new note, the Morgan Stanley analyst estimated that Tesla could save $2.5 billion by replacing just 10% of its workforce with its Optimus robots, assigning each robot a net present value (NPV) of $200,000.

Morgan Stanley highlights Optimus’ savings potential

Jonas highlighted the potential savings on Tesla’s workforce of 125,665 employees in his note, suggesting that the utilization of Optimus robots could significantly reduce labor costs. The analyst’s note arrived shortly after Tesla reported Q2 2025 deliveries of 384,122 vehicles, which came close to Morgan Stanley’s estimate and slightly under the consensus of 385,086.

“Tesla has 125,665 employees worldwide (year-end 2024). On our calculations, a 10% substitution to humanoid at approximately ($200k NPV/humanoid) could be worth approximately $2.5bn,” Jonas wrote, as noted by Street Insider.

Jonas also issued some caution on Tesla Energy, whose battery storage deployments were flat year over year at 9.6 GWh. Morgan Stanley had expected Tesla Energy to post battery storage deployments of 14 GWh in the second quarter.

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Musk’s political ambitions

The backdrop to Jonas’ note included Elon Musk’s involvement in U.S. politics. The Tesla CEO recently floated the idea of launching a new political party, following a poll on X that showed support for the idea. Though a widely circulated FEC filing was labeled false by Musk, the CEO does seem intent on establishing a third political party in the United States. 

Jonas cautioned that Musk’s political efforts could divert attention and resources from Tesla’s core operations, adding near-term pressure on TSLA stock. “We believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities which may add further near-term pressure to TSLA shares,” Jonas stated.

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Investor's Corner

Two Tesla bulls share differing insights on Elon Musk, the Board, and politics

Two noted Tesla bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

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Credit: Tesla

Two noted Tesla (NASDAQ:TSLA) bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

While Wedbush analyst Dan Ives called on Tesla’s board to take concrete steps to ensure Musk remains focused on the EV maker, longtime Tesla supporter Cathie Wood of Ark Invest reaffirmed her confidence in the CEO and the company’s leadership.

Ives warns of distraction risk amid crucial growth phase

In a recent note, Ives stated that Tesla is at a critical point in its history, as the company is transitioning from an EV maker towards an entity that is more focused on autonomous driving and robotics. He then noted that the Board of Directors should “act now” and establish formal boundaries around Musk’s political activities, which could be a headwind on TSLA stock. 

Ives laid out a three-point plan that he believes could ensure that the electric vehicle maker is led with proper leadership until the end of the decade. First off, the analyst noted that a new “incentive-driven pay package for Musk as CEO that increases his ownership of Tesla up to ~25% voting power” is necessary. He also stated that the Board should establish clear guidelines for how much time Musk must devote to Tesla operations in order to receive his compensation, and a dedicated oversight committee must be formed to monitor the CEO’s political activities.

Ives, however, highlighted that Tesla should move forward with Musk at its helm. “We urge the Board to act now and move the Tesla story forward with Musk as CEO,” he wrote, reiterating its Outperform rating on Tesla stock and $500 per share price target.

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Tesla CEO Elon Musk has responded to Ives’ suggestions with a brief comment on X. “Shut up, Dan,” Musk wrote.

Cathie Wood reiterates trust in Musk and Tesla board

Meanwhile, Ark Investment Management founder Cathie Wood expressed little concern over Musk’s latest controversies. In an interview with Bloomberg Television, Wood said, “We do trust the board and the board’s instincts here and we stay out of politics.” She also noted that Ark has navigated Musk-related headlines since it first invested in Tesla.

Wood also pointed to Musk’s recent move to oversee Tesla’s sales operations in the U.S. and Europe as evidence of his renewed focus in the electric vehicle maker. “When he puts his mind on something, he usually gets the job done,” she said. “So I think he’s much less distracted now than he was, let’s say, in the White House 24/7,” she said.

TSLA stock is down roughly 25% year-to-date but has gained about 19% over the past 12 months, as noted in a StocksTwits report.

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Investor's Corner

Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries

Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.

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Credit: Tesla China

Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report. 

Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.

Tesla’s Q2 results

Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.

In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.

Tesla’s stock is still volatile

Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump. 

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Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.

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