Recently famed Apple analyst Gene Munster predicted market share gains ahead for Tesla based on a survey executed by his firm Loup Ventures. It turns out there are other indicators that point to market share gains down the line for Tesla. With so much riding on the success of Model 3, Seeking Alpha’s Victor Dergunov remains convinced that a stock “breakout appears imminent … and new all-time highs [are] very likely” for Tesla.
We reported a few days ago on the news that the proxy advisory firm Glass Lewis has issued a recommendation to Tesla shareholders to vote against the new performance-based pay package being offered to CEO Elon Musk.
Glass Lewis, a prominent proxy advisory firm, has issued a report advising Tesla shareholders to vote against the recent proposal from the Tesla board of directors to offer CEO Elon Musk a very substantial performance-based rewards package that would apply over the coming decade or so.
Greenlight Capital has now lost 11.9% this year, with 6% of that coming in February, Einhorn recently revealed to the hedge fund’s clients.
When I was going through the Q4 2017 Tesla shareholder letter for a recent article, what might seem like a minor comment caught my attention. Tesla wrote, “We incorporated all the learnings from the development and production of Roadster, Model S, and Model X to create the world’s first mass market electric vehicle that is priced on par with its gasoline-powered equivalents – even without incentives.”
In January, the Tesla board (with Elon Musk abstaining) voted to implement new CEO incentive and reward structure for Elon Musk. There have been numerous articles about what this could represent for Elon Musk, but not much is written about the consequences for Tesla.
The story of Tesla is a fascinating one by any measure: a group of Silicon Valley entrepreneurs get together to start a car company, a feat that business-school professors have been using as the definition of economic impossibility for decades, and after only a few years they build a company that rivals the Big Three, and a car that earns every accolade the industry has to offer. Of course, there are several near-death experiences along the way to hold our interest.
Tesla [NASDAQ: TSLA] has been confounding Wall Street’s naysayers for years, and 2018 has not departed from that trend. According to Schaeffer’s Investment Research, “Tesla stock was trading near its highest levels since late October earlier — topping out at $349 — after JPM reported on the company’s private investor meeting at the Detroit Auto Show. The brokerage firm said TSLA’s head of investment relations indicated Model 3 production will reach 1,000 cars per week this month — an increase from fourth-quarter numbers, with the recent bottleneck issues resolved.” [Update: Tesla stock is currently at $352.71.]
If everything goes according to plan, in 10 years, Elon Musk will be worth approximately $6.5 billion more. What does that mean to you? Before we get to that, let’s take a look at Musk’s new income plan.
For decades, electric cars have been a dream of the future. Magazines showed show cars and experiments, but fielded few or no production examples. During periods of high oil prices, their prospects rose, but as oil prices declined, they faded. Tinkerers and DIY mechanics made home-built lead-acid gas car conversions. There were tantalizing forays stimulated by California’s CARB ZEV (zero emission vehicle) mandates, like the GM EV1, Toyota RAV4 EV, and Honda EV Plus, but they were in limited numbers and more often offered for lease but not for sale.
