Elon Musk says he’s not stepping down and four other takeaways from Tesla shareholder meeting

Tesla Inc.’s eventful, nearly two-hour-long annual shareholder meeting late Tuesday seemingly had something for everyone, and Wall Street cheered it: Tesla’s stock was up nearly 4% on Wednesday. Here are the takeaways from the meeting:

Succession: ‘It ain’t so’

That was Chief Executive Elon Musk’s answer when he was asked about rumors he’d be stepping down from his post. Wedbush analyst Dan Ives said he believes Musk will stay on for another five years “as Tesla TSLA, 0.98% navigates this next phase of its EV growth which we still view in the early innings.”


Musk confirmed that the Cybertruck will be on sale this year, although he said the production rate would be slow at first. Musk conceded that the futuristic-looking all-electric pickup truck might not be to everyone’s taste but said “we will make as many as people want them.”


Musk surprised shareholders by saying Tesla would advertise its products, which it has categorically refused to do for as long as it has been around.

Elon Musk says he’s not stepping down and four other takeaways from Tesla shareholder meeting

It wasn’t exactly a firm commitment from the famously mercurial Musk, who said that “we will try advertising and see how it goes,” but Wall Street ran with it.

That’s a “major positive,” Wedbush’s Ives wrote, as “many parts of the Tesla product portfolio are undervalued by the Street.”

No advertising was the right strategy for Tesla in the past, but not as competition increases across the EV landscape, he said.

‘Special attention’ to JB Straubel’s election

Baird analyst Ben Kallo highlights the significance of the election of JB Straubel to Tesla’s board, particularly in response to shareholder criticism. Straubel, the former chief technology officer of Tesla, has been elected to the board, taking the place of Hiro Mizuno, who did not seek re-election.

The statement suggests that there may have been specific concerns or criticisms raised by shareholders regarding Tesla’s board composition or strategic direction. In response to these concerns, the election of Straubel could be seen as a move to address shareholder discontent and bring in a recognized and respected figure within the company.

Kallo’s emphasis on paying special attention to this development suggests that Straubel’s appointment could potentially have significant implications for Tesla’s future direction and decision-making processes. Straubel’s deep understanding of Tesla’s technology and industry experience could contribute to shaping the company’s strategic decisions, particularly in areas related to technology development, innovation, and sustainability.

It’s important to note that without further details, the specific nature of the shareholder criticism or the reasons behind Mizuno’s decision not to seek re-election are not provided. Investors should consider this information in conjunction with other factors when assessing the potential impact of Straubel’s election on Tesla’s governance and future performance.

Straubel departed Tesla in 2019 and went on to found a battery-recycling startup, the privately held Redwood Materials. Redwood is a “leader in materials recycling technology,” Kallo said.

According to the analyst, the nomination of JB Straubel to the Tesla board is seen as a strategic move that will strengthen Tesla’s technology leadership. Furthermore, the analyst speculates that Straubel’s addition to the board could potentially foreshadow a future partnership in materials recycling.

The statement suggests that the analyst views Straubel’s expertise and experience in the field of materials recycling as valuable to Tesla’s operations and goals. Materials recycling is an important aspect of sustainability and resource management, which aligns with Tesla’s commitment to environmental consciousness and renewable energy.

By bringing Straubel onto the board, Tesla may be seeking to leverage his knowledge and insights to further enhance their technological advancements and practices in materials recycling. This could indicate Tesla’s intention to explore innovative recycling solutions, optimize their supply chain, or improve the sustainability of their manufacturing processes.

It’s important to note that this statement reflects the analyst’s speculation and opinion, and there is no official confirmation of a future partnership in materials recycling between Tesla and Straubel. Investors should consider such speculation alongside other factors when evaluating Tesla’s potential future strategies and partnerships.

‘Leading the race’ in autonomous vehicles

Musk repeated some of his bullish comments about improvements in Tesla’s self-driving technology, reiterating that he believes Tesla will achieve full autonomy this year.

In a note, CFRA analyst Garrett Nelson expressed a positive outlook on Tesla’s stock despite the stock’s pullback since the end of the first quarter. Nelson acknowledged that Elon Musk’s predictions should be approached with caution, given his history, but still believes that Tesla is at the forefront of the autonomous driving race.

The statement suggests that CFRA views the recent decline in Tesla’s stock as an opportunity to buy. This perspective could be based on their assessment of Tesla’s leadership position in the autonomous driving sector, which is seen as a promising and potentially transformative technology in the automotive industry.

It’s worth noting that analysts’ opinions can vary, and investors should consider multiple perspectives and conduct their own research before making investment decisions. CFRA’s positive stance may be influenced by factors such as Tesla’s technological advancements, their market position, and their potential for future growth in the autonomous driving space.

Investors should also keep in mind that the stock market is subject to volatility, and individual stock performance can be influenced by various factors, including market conditions, competition, regulatory changes, and company-specific developments.

Tesla shares have exhibited a notable performance trend when compared to the broader equity index. In the current year, Tesla’s stock has experienced a significant surge, showing a 40% increase. This stands in stark contrast to the performance of the S&P 500, which has only witnessed gains of around 7% during the same period. This implies that Tesla shares have been outperforming the broader market by a considerable margin.

However, when we broaden the timeframe to the past 12 months, the situation appears different. Over this period, Tesla has actually faced a decline of 32% in its stock value. This contrasts with the S&P 500, which has recorded gains of approximately 1%. Therefore, in the longer term, Tesla’s performance has been relatively weaker compared to the broader equity index.

These contrasting figures suggest that Tesla’s stock is subject to significant volatility and can experience dramatic shifts in value over different time periods. The outperformance observed in the current year may be attributed to various factors, such as investor sentiment, market dynamics, and specific developments within Tesla as a company. It is important to consider these fluctuations in assessing the overall performance of Tesla shares and to recognize that short-term gains or losses may not necessarily reflect the long-term prospects of the company.

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Information Source:- marketwatch

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