Below is Validea's guru fundamental report for TESLA INC (TSLA). Of the 22 guru strategies we follow, TSLA rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit cha
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There already weren’t that many who were wondering if
Elon Musk was worth the
vast pay package he was slated to pull. Aside from, of course, judges who apparently know more about executive pay than a company’s board and shareholders, but that’s largely beside the point. At any rate, one person who doesn’t have much problem with Tesla’s (
NASDAQ:TSLA
) founder and CEO landing a huge payday is Nvidia (
NASDAQ:NVDA
) co-founder
Jensen Huang. Huang came out in praise of Musk ahead of the newest vote, which will, hopefully, mean something this time.
Nvidia and Huang know from success, having seen shares run up massively on the strength of a growing demand for artificial intelligence (AI) chips and accompanying infrastructure. But Huang also had high praise for Musk, noting that “…Tesla is far ahead in self-driving cars.”
This is actually a telling remark, as much of Musk’s self-driving car plans are built around AI. This is a risky pivot on Musk’s part, as it’s a sea change from its original mission of focusing on sustainable travel. Tesla was originally planning to ramp up production, but it has since pulled back to refocus on AI.
Tesla’s Pivot Supported by Current Market Dynamics
Tesla’s pivot is unnerving, certainly, but it also seems to be supported by current market dynamics. Tesla’s original mission may have been to promote sustainable driving, but the market seems
a whole lot less interested in that than it once was. Tesla sales are in decline, but so are those of the wider electric vehicle market. With legacy automakers like Ford (
NYSE:F
) pivoting to hybrids instead of pure electric, Tesla doesn’t have much choice but to pivot either.
Thus, focusing on its self-driving system and making it an actual self-driving system instead of the current “mostly self-driving but you have to babysit it constantly” system just makes sense. There’s little doubt that Huang sees that as well.
Is Tesla a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on nine Buys, 14 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 10.9%
loss in its share price over the past year, the
average TSLA price target of $174.60 per share implies 2.59% downside risk.
Disclosure
(RTTNews) - Elon Musk's artificial intelligence startup xAI has secured $6 billion in its Series B round to accelerate its challenge to his former allies at OpenAI.
Tesla (
NASDAQ:TSLA
) CEO
Elon Musk’s $46 billion pay package faces another hiccup. This time, proxy advisory firm Glass Lewis & Co. has advised Tesla’s shareholders to reject Musk’s compensation plan. Just last week, a group of TSLA’s shareholders, including Amalgamated Bank (
AMAL
) and SOC Investment Group, also
asked investors to vote against Musk’s package.
Glass Lewis remains concerned about the excessive size of Musk’s compensation plan and the potential stock dilution impact on shareholders’ holdings. Furthermore, it noted that the package would boost Musk’s ownership stake in TSLA and solidify his position as the largest shareholder by a considerable margin. The firm also raised concerns about Musk handling several high-profile projects simultaneously.
Musk’s Compensation Journey
Musk’s compensation was initially approved by Tesla shareholders in 2018. However, the package was voided by a Delaware court in January due to concerns surrounding the approval process. The original package consisted of a 10-year grant of stock options with 12 vesting tranches based on the company reaching a market cap of at least $650 billion and hitting various revenue and profit targets.
Interestingly, Glass Lewis had raised similar concerns about the proposed pay package for Elon Musk in 2018.
Shareholders are scrutinizing Tesla’s proposed compensation package for Elon Musk due to its substantial size and concerns about the lack of TSLA’s board independence.
Is Tesla a Buy or Sell?
Tesla has a Hold consensus rating based on nine Buys, 14 Holds, and nine Sells. The
analysts’ average price target on Tesla stock of $174.60 implies a downside potential of 2.6% from current levels. Year-to-date,
the stock is down about 28%.
Interestingly, investors considering TSLA stock could follow
Robert W. Baird analyst Ben Kallo. He is the best analyst covering the stock (in a one-year timeframe). He boasts an average return of 19.03% per rating and a 56% success rate. Click on the image below to learn more.
Disclosure
Below is Validea's guru fundamental report for TESLA INC (TSLA). Of the 22 guru strategies we follow, TSLA rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit cha
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Even those who don't keep close tabs on Tesla (NASDAQ: TSLA) are surely familiar with Elon Musk and the commanding position he plays in the company's operations. Musk is also the largest shareholder of Tesla stock.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Tesla Inc (Symbol: TSLA), where a total volume of 1.6 million contracts has been traded thus far today, a contract volume which is representative of approximatel
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13 minutes 50 seconds ago
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