Investor's Corner
Wall St. can’t make up its mind about Tesla: TSLA ups and downs this quarter

Tesla’s portfolio of products and services extends well beyond transportation to energy storage systems and includes solar and energy storage products. As the world’s only vertically integrated energy company, Tesla is truly unique among alternative energy stock offerings. With end-to-end clean energy products — including generation, storage, and consumption — as well as an established a global network of vehicle stores, service centers, and Supercharger stations, Tesla is well situated to accelerate the widespread adoption of its line.
Many people admire Tesla, Inc. for its visionary approach to a sustainable future. Indeed, the company’s most recent SEC 10-K filing spoke to the company’s mission to provide an “intense focus to accelerate the world’s transition to sustainable transport, ” a business model that differentiates Tesla from other manufacturers.
That report also pointed to possible market uncertainties which could affect the 2017 performance of the Tesla brand.
“We have experienced in the past, and may experience in the future, significant delays or other complications in the design, manufacture, launch and production ramp of new vehicles and other products such as our energy storage products and the solar roof, which could harm our brand, business, prospects, financial condition and operating results.”
As Q1 2017 nears its conclusion, this is a good stopping point to begin to review the ups and downs of the Tesla brand and how stock market analysts have assessed and questioned the resiliency and robust character of the stock.
A global look at TSLA
- Tesla, Inc. (NASDAQ:TSLA) opened at $246.23 on Friday, March 3, 2017. Today, March 6, 2017, that number rose to $251.57 to start the day.
- Tesla‘s stock had its “hold” rating reiterated by Deutsche Bank AG in a report released on Friday, March 3, 2017. Deutsche Bank AG had a $215.00 target price on the Tesla stock.
- Eight investment analysts have recently rated the stock with a sell rating, eleven have assigned a hold rating, and twelve have given a buy rating to the company. The stock presently has an average rating of “Hold” and an average price target of $256.33.
- Goldman Sachs Group, Inc. downgraded the Tesla stock from Neutral to a Sell rating after the company’s December quarter results. Like several other brokerages, the firm cited about cash requirements and worries on operational execution.
- Tesla has a 12 month low of $178.19 and a 12 month high of $287.39.
- The firm has a 50-day moving average price of $254.33 and a 200 day moving average price of $215.51.
- The company’s market cap is $38.17 billion.
Why analysts fail to come to consensus on Tesla stock valuation
As the first car company in a very long time to be homegrown and a real challenge to Detroit’s Big 3 automakers, Tesla experiences numerous influences on its stock value, from supply chain difficulties, to currency fluctuations, competition, and even factors like emotion and superstition. These factors can push the Tesla stock high and low, even within a short period of time. A closely watched stock like Tesla is often accused variously of being overvalued, misunderstood, or overextended.
Yet the demand for Tesla’s Model S and X, as well as initial orders for its more cost effective Model 3 sedan, have continued to support Tesla’s fiscal premises that U.S. and global citizens really want to own cleaner vehicles.
Tesla issued its 2016 Q4 earnings results on Wednesday, February 22, 2017 and reported $0.69 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.43 by $0.26. As 2017 began, Tesla stocks had accrued a number of positive analyst reports and had continued to rise since the 2016 presidential election. The firm earned $2.29 billion during the quarter, compared to analyst estimates of $2.21 billion. During the same period in the prior year, the firm earned $0.87 earnings per share.
Analysts’ estimates of Tesla stock prior to the 2016 annual report
It’s interesting to look back over the past several months and see how variable and uncertain many analysts have been about Tesla. In a cultural climate in which the largest economic downturn since the Great Depression looms large in many people’s consciousnesses, it may be reasonable for many people to be skeptical about Tesla’s value. But, as with any revolutionary change in social thinking, Tesla will likely continue to experience its share of scrutiny as well as celebration as it contributes to a sustainable future.
- Deutsche Bank AG’s price target suggests a potential downside of 12.68% from the company’s current price as of March 3, 2017.
- TheStreet raised Tesla Motors from a “d+” rating to a “c-” rating in a research note on Wednesday, January 25th.
- Robert W. Baird reaffirmed an “outperform” rating and issued a $338.00 price target on shares of Tesla Motors in a research note on Thursday, January 5th.
- Global Equities Research reaffirmed an “overweight” rating and issued a $385.00 price target on shares of Tesla Motors in a research note on Tuesday, December 6th.
- Cowen and Company reaffirmed an “underperform” rating and issued a $155.00 price target (down from $160.00) on shares of Tesla Motors in a research note on Sunday, December 4th.
- Vetr raised Tesla Motors from a “buy” rating to a “strong-buy” rating and set a $203.80 price target on the stock in a research note on Tuesday, November 15th.
Elon Musk
Tesla board reveals reasoning for CEO Elon Musk’s new $1 trillion pay package
“Yes, you read that correctly: in 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.”

Tesla’s Board of Directors has proposed a new pay package for company CEO Elon Musk that would result in $1 trillion in stock offerings if he is able to meet several lofty performance targets.
Musk, who has not been meaningfully compensated since 2017, completed his last pay package by delivering billions in shareholder value through a variety of performance-based “tranches,” which were met and resulted in the award of billions in stock.
Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation
However, Musk was unable to claim this award due to a ruling by the Delaware Chancery Court, which deemed the payout an “unfathomable sum.”
Now, the company is taking steps to ensure Musk gets paid, as the Board feels that it is crucial to retain its CEO, who has been responsible for much of the company’s success.
This is not a statement to undermine the work of all of Tesla’s terrific employees, but a ship needs to be captained by someone, and Musk has proven he is the right person for the job.
The Board also believes that, based on a statement made by the company in its proxy, various issues will be discussed during the upcoming Shareholder Meeting.
Robyn Denholm and Kathleen Wilson-Thompson recognized Musk’s contributions in a statement, which encouraged shareholders to vote to approve the payout:
“We’re asking you to approve the 2025 CEO Performance Award. In designing the new performance award, we explored numerous alternatives. Ultimately, the new award aims to build upon the success of the 2018 CEO Performance Award framework, which ensure that Elon was only paid for the performance delivered and incentivized to guide Tesla through a period of meteoric growth. The 2025 CEO Performance Award similarly challegnes Elon to again meet a series of even more aspirational goals, including operational milestones focused on reaching Adjusted EBITDA targets (thresholds that are up to 28 times higher than the 2108 CEO Performance Award’s top Adjusted EBITDA milestone) and rolling out new or expanded product offerings (including 1 million Robotaxis in commercial operation and delivery of 1 million AI Bots), all while growing the company’s market capitalization by trillions of dollars.
Yes, you read that correctly: in 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.
In addition to these unprecedented performance milestones, the 2025 CEO Performance Award also includes innovative structural features, born out of the special committee’s considered analysis and extensive shareholder feedback. These features include supercharged retention (at least seven and a half years and up to 10 years to vest in the full award), structural protections to minimize stock price volatility due to administration of this award and, thereafter, incentives for Elon to participate in the Board’s continued development of a framework for long-term CEO Succession. If Elon achieves all the performance milestones under this principle-based 2025 CEO Performance Award, his leadership will propel Tesla to become the most valuable company in history.”
Musk will have a lot of things to accomplish to receive the 423,743,904 shares, which are divided into 12 tranches.
However, the Board feels he is the right person for the job, and they want him to remain the CEO. This package should ensure that he stays with Tesla, as long as shareholders feel the same way.
Investor's Corner
Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation
Shareholders are expected to vote on the proposal at the annual meeting on November 6.

Tesla’s board has proposed a new compensation package for CEO Elon Musk that could make him the world’s first trillionaire and Tesla the most valuable company in history.
The 2025 CEO Performance Award, outlined in a securities filing on Friday, would be worth up to $900 billion in Tesla stock (NASDAQ:TSLA) if the automaker achieves a series of aggressive performance and valuation goals, according to the New York Times.
Shareholders are expected to vote on the proposal at the annual meeting on November 6.
Tesla is aiming for an insane $8.5 trillion market cap
The package requires Musk to lift Tesla’s market capitalization from about $1.1 trillion today to $8.5 trillion over the next decade. At that level, Tesla would surpass every major public company in existence. Nvidia, currently the world’s most valuable firm, has a market cap of around $4.2 trillion today, as noted in a Motley Fool report. Microsoft and Apple follow at $3.8 and 3.6 trillion each, while Saudi Aramco is valued at around $1.5 trillion.
If Tesla achieves its $8.5 trillion target, it would be worth more than twice Nvidia’s present valuation and nearly eight times its current size. The compensation plan also requires Tesla’s operating profit to grow from $17 billion last year to $400 billion annually.

Elon Musk’s path to a trillionaire status
Apart from leading Tesla to become the world’s biggest company in history, Musk is also required to hit several product targets for the electric vehicle maker. These include the delivery of 20 million Tesla vehicles cumulatively, 10 million active FSD subscriptions, 1 million Tesla bots delivered, and 1 million Robotaxis in operation.
Tesla board chair Robyn Denholm and director Kathleen Wilson-Thompson said retaining Musk is “fundamental to Tesla achieving these goals and becoming the most valuable company in history.” If successful, the plan would raise Musk’s Tesla stake from 13% to about 25%, further consolidating his control. It would also result in the CEO earning $900 billion in TSLA stock, allowing him to effectvely become a trillionaire.
The proposal mirrors a 2018 compensation plan that was invalidated in Delaware court earlier this year in the way that it is focused on very aggressive targets and operational milestones. Tesla has since shifted its corporate registration to Texas, where challenges from potential activist shareholders are less of a risk.
Tesla’s SEC filing can be viewed below.
www-sec-gov-Archives-edgar-data-1318605-000110465925087598-tm252289-4_pre14a-htm… by Simon Alvarez
Investor's Corner
Shareholder group urges Nasdaq probe into Elon Musk’s Tesla 2025 CEO Interim Award
The SOC Investment Group represents pension funds tied to more than two million union members, many of whom hold shares in TSLA.

An investment group is urging Nasdaq to investigate Tesla (NASDAQ:TSLA) over its recent $29 billion equity award for CEO Elon Musk.
The SOC Investment Group, which represents pension funds tied to more than two million union members—many of whom hold shares in TSLA—sent a letter to the exchange citing “serious concerns” that the package sidestepped shareholder approval and violated compensation rules.
Concerns over Tesla’s 2025 CEO Interim Award
In its August 19 letter to Nasdaq enforcement chief Erik Wittman, SOC alleged that Tesla’s board improperly granted Musk a “2025 CEO Interim Award” under the company’s 2019 Equity Incentive Plan. That plan, the group noted, explicitly excluded Musk when it was approved by shareholders. SOC argued that the new equity grant effectively expanded the plan to cover Musk, a material change that should have required a shareholder vote under Nasdaq rules.
The $29 billion package was designed to replace Musk’s overturned $56 billion award from 2018, which the Delaware Chancery Court struck down, prompting Tesla to file an appeal to the Delaware Supreme Court. The interim award contains restrictions: Musk must remain in a leadership role until August 2027, and vested shares cannot be sold until 2030, as per a Yahoo Finance report.
Even so, critics such as SOC have argued that the plan does not have of performance targets, calling it a “fog-the-mirror” award. This means that “If you’re around and have enough breath left in you to fog the mirror, you get them,” stated Brian Dunn, the director of the Institute for Comprehension Studies at Cornell University.
SOC’s Tesla concerns beyond Elon Musk
SOC’s concerns extend beyond the mechanics of Musk’s pay. The group has long questioned the independence of Tesla’s board, opposing the reelection of directors such as Kimbal Musk and James Murdoch. It has also urged regulators to review Tesla’s governance practices, including past proposals to shrink the board.
SOC has also joined initiatives calling for Tesla to adopt comprehensive labor rights policies, including noninterference with worker organizing and compliance with global labor standards. The investment group has also been involved in webinars and resolutions highlighting the risks related to Tesla’s approach to unions, as well as labor issues across several countries.
Tesla has not yet publicly responded to SOC’s latest letter, nor to requests for comment.
The SOC’s letter can be viewed below.
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