Investor's Corner
Op-Ed: Tesla faces a unique challenge–a growing number of investors who no longer believe in Elon Musk
Tesla’s (TSLA:NASDAQ) Proxy Statement 2024 revealed that the company is asking shareholders to approve two big proposals at the upcoming annual meeting of stockholders in June: Tesla’s reincorporation to Texas and the ratification of Musk’s 2018 compensation plan, which was rescinded by a Delaware judge in late January. Considering the sentiments of the Tesla community online today, it would appear that the electric vehicle maker will be facing a rather unique situation in June — a growing group of shareholders who have grown to dislike Elon Musk.
Elon Musk has never really behaved like a conventional CEO, not for Tesla or any company that he leads or has led in the past. Tesla will also never have 100% of his time, as he is also the CEO of SpaceX, and he is involved with his other companies like Neuralink, The Boring Company, xAI, and X, formerly Twitter. For years, Musk and the Tesla community seemed to have maintained an agreement that such a setup was agreeable. But with Tesla stock down 40% year-to-date, sentiments surrounding Musk have become quite negative.
Negative Sentiments
These sentiments became quite evident after Tesla announced that it was looking to ratify Musk’s 2018 compensation package, and they became even more prominent when the company went live with https://www.supportteslavalue.com/, a dedicated website that encourages shareholders to support the company’s proposals. Such sentiments were quite notable in the r/TeslaMotors subreddit, a group with over 2.7 million members. When a user posted a link to https://www.supportteslavalue.com/, the vast majority of the comments claimed that they would be voting against the ratification of Musk’s 2018 compensation package.
Support Tesla!
byu/cicada57 inteslamotors
The same is true on social media platform X. Musk has become more polarizing than ever as he continued to express his opinions on political and societal matters, and this has resulted in a growing number of Tesla community members seemingly getting disillusioned with the CEO. This was quite evident with Leo KoGuan, a prominent retail shareholder who claims to hold over 27 million TSLA shares. While KoGuan has been very supportive of Musk in the past, his recent posts showed a notable disdain for the CEO. “I fell in love with the crafted image, I was naĩve,” KoGuan wrote. He also noted that if Musk only spends more time at Tesla, the company would be so much better off.
If Elon just spends 50% of his working hours at Tesla, none can beat Elon and Tesla. I just want him to spend 50% of his waking hours on Tesla bc he is Tesla tyrant CEO. If he doesn’t want to or has no time for Tesla, he should graciously fade away and appoint his replacement. https://t.co/ROZCtKLCTM— KoGuan Leo (@KoguanLeo) April 18, 2024
A look at the overall sentiments of alleged TSLA shareholders that seem inclined to vote against Musk’s 2018 compensation plan suggests that investors are most frustrated about the company’s stock price, which has never really recovered since Musk sold part of his personal shares when he purchased Twitter. Many are also notably frustrated at Musk’s polarizing and controversial posts on X, some of which seem to be targeting the very demographic that initially supported Tesla and ensured its survival in its early years. The volume of Musk’s posts about topics like DEI, the US border, and politics has also given the impression that he is simply not focused on Tesla anymore.
Elon Musk: Strength to Liability
Overall, the situation could be summarized as follows: In 2018, most TSLA shareholders seemed secure in the belief that Musk was the company’s biggest strength. In 2024, a growing number of shareholders seem to believe that Musk has become Tesla’s biggest liability. So prominent are these sentiments today that some have seemingly adopted the idea that Musk is now weighing Tesla down and driving it to the ground, so the EV maker’s best chance of survival is to kick Musk out of Tesla and replace him with a more level-headed and focused CEO — someone like Tim Cook, who is arguably not as innovative as Steve Jobs, but is the leader that brought Apple to a $2.55 trillion valuation.
Making EVs profitably and at scale is extremely difficult. pic.twitter.com/KZenPfZBwt— ALEX (@ajtourville) April 21, 2024
As noted by Tesla community members on social media, TSLA stock, after accounting for the stock splits that the company has implemented over the years, was trading at less than $20 per share when Musk’s 2018 compensation package was initially approved. Thus, even in its current state, it should be noted that TSLA shares are still up over 800%. While Tesla has fallen significantly from its peak, when the company was worth over a trillion dollars, it is still more than eight times more valuable than it was when investors approved Musk’s compensation plan.
For those who don’t know, the stock was under $20 when it was first approved in 2018. pic.twitter.com/QmbcNcgaLF— John Shoemaker (@RealJohnShoe) April 22, 2024
In a way, voting against the ratification of Musk’s 2018 compensation plan will probably ensure that Tesla becomes a competent, predictable carmaker — and that’s not so bad at all. Tesla will still be one of the few American automotive startups that survived and thrived in a very long time. That’s a whole lot of accomplishments that can never be taken away from the company, no matter what happens moving forward. Voting in support of the company’s proposals would likely mean that Tesla, under Musk’s leadership, will continue to wager its future on risky innovations that hold world-changing potential, like AI and humanoid robots, all while Musk is focused on multiple, high-profile projects like SpaceX’s Starship program.
History will ultimately determine which of these choices will be the better option for Tesla.
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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
Tesla Full Self-Driving lands in a new country, its 7th
Tesla CEO Elon Musk teases insane capabilities of next major FSD update
