Tesla ( TSLA ) shareholders also approved Elon Musk’s record-breaking deal, removing a lot of volatility from the stock market as investors gave their blessing to the compensation plan.
Shares of Tesla rose yesterday when Musk all said the dividend was due an accomplished fact. And with 72% of the votes of the shareholders (excluding Musk and his brother Kimbal) in favor of compensation of $ 56 billion, experts believe that the future of Musk and the leadership of the company is over.
“There’s an old saying in Silicon Valley: ‘Don’t fire Steve Jobs.’ When a smart person comes along and decides to run a company, a smart entrepreneur should do everything they can to keep them,” DataTrek’s Nick Colas wrote in a note Friday morning.
Colas, who cut his teeth as an analyst for Detroit’s Big Three automakers, said Open AI violated the law when his agency fired Sam Altman late last year.
“Tesla shareholders did not make the same mistake,” Colas said.
Long-time Tesla bull Dan Ives said it was a “pop-the-champagne” moment for Tesla and Musk, as the company focused on execution.
“This removes a $20-$25 overhang on the stock in our view that has weighed on the shares since the Delaware ruling on the title set off the Twilight Zone soap opera earlier this year,” Ives wrote in his letter Thursday night. “Our bull case now is $350 coming in the next 12 to 18 months as we believe the next chapter in Tesla’s growth story will be around autonomy and FSD. [full self-driving] it is now close to taking Tesla’s valuation north of $1 trillion in 2025 in our estimation. “
CFRA analyst Garrett Nelson also expressed relief in a letter Thursday night. “We think that these stories eliminate a potentially dangerous situation, where Musk could have left Tesla and decided to devote more time to his other (non-public) companies, which would have caused a ‘brain drain’ of top talent. and had significant implications for the future of the company (and the stock price of TSLA).
Musk presents his vision
Musk took the stage and delivered a paragraph-by-paragraph presentation of the changes and revealed a slate of products and ambitious goals.
“If I didn’t have hope, this factory wouldn’t exist,” Musk said during the presentation, held at Tesla’s headquarters in Austin, Texas. “I have been full of hope since I was born. But this is why all this happens. But, I’m finally giving it away. That is the most important thing.”
With the upcoming Tesla robotaxi, Musk said some of the vehicles in the fleet will be owned by Tesla, while others will be owned by customers. Tesla owners could have similar “Airbnb” functionality with their cars, Musk said, giving them control over their cars’ time and when they participate in the robotaxi network.
Research firms like Cathie Wood’s ARK Invest see robotaxis as a key driver of the company’s long-term price range of $2,600.
“ARK estimates that approximately 90% of Tesla’s business value and revenue will come from the robotaxi business in 2029,” ARK analyst Tasha Keeney wrote in a note. “Currently, electric cars account for about a quarter of all sales and ~10% of Tesla’s revenue, because we believe that the robotaxi business will have a very high margin.”
Tesla’s robotaxi unveiling event is set for August 8.
As for Tesla’s Optimus robot, Musk had some ambitious ideas to roll out. Musk said limited production of robots is coming this year, and that Tesla itself will have “thousands” of robots working in Tesla factories next year. This despite the fact that Optimus was only recently seen in several demonstration videos released by Tesla.
“I think Optimus is a $25 trillion market cap; it’s a huge undertaking to get there, but we’re moving fast down that road,” Musk said.
The combination of robotaxis, Optimus, and autonomy is part of Musk’s AI driven Tesla — which Musk believes is the true way to look at Tesla as a company.
“We’re not just starting a new chapter for Tesla; we’re starting a new book,” Musk said of AI and its importance to Tesla.
“What is this new book? AI/robotics: driving with Optimus,” Canaccord Genuity analyst George Gianarikas wrote Thursday night.
“I can object.” [Tesla] it’s one of the best AI plays on the market, if you look at the next two, three, four years,” Wedbush’s Ives added in an interview with Yahoo Finance.
In addition to the story of Tesla and future growth, Musk revealed in a slide during the presentation that three new Tesla cars are planned for the future. Two of them, possibly a robotaxi and a low-cost Tesla car, have been mentioned by Tesla as being in the pipeline, but a new van-like product also appears under the hood.
In a bit for investors, Musk confirmed long-term demand and sales will continue to struggle as the business moves through the long-term.
“It’s very difficult,” Musk said of the EV market, adding that competitors have been pushing back on EV investment and production.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him Twitter and on Instagram.
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