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Tag: tesla shares

  • Tesla Stock Is Tearing Higher Today. Options Data Tell Us TSLA Could Be Headed to These Levels Next.

    Tesla (TSLA) shares ripped higher on Friday, extending a multi-day rally fuelled by renewed investor excitement around billionaire CEO Elon Musk’s artificial intelligence ambitions.

    The chief executive’s recent remarks about TSLA’s future value being driven by humanoid robots have reignited speculative interest, with traders betting on long-term upside.

    Despite concerns of slowing electric vehicle sales and an elevated valuation, Tesla stock is currently up some 80% versus its year-to-date low in early April.

    www.barchart.com

    The recent surge in TSLA stock reflect investors’ belief that a focus on humanoid robots could reshape the company’s narrative.

    Earlier this month, Musk said “80% of Tesla’s value will be Optimus” – referring to the Nasdaq-listed firm’s humanoid robot initiative.

    With EV growth stagnating and competition intensifying, the billionaire is betting big on artificial intelligence and automation to drive future value.

    Tesla aims to scale Optimus production to 1 million units annually within five years, with prototypes already in development. While skeptics question the timeline and commercial viability, Musk’s track record of bold execution has investors intrigued.

    If Optimus delivers even a fraction of its promise, TSLA stock could indeed catapult much higher.

    Options data from Barchart suggests Tesla shares could move as much as 20% up or down by the end of the year.

    Contracts expiring Dec. 19 imply a broad trading range between $316.88 and $472, reflecting meaningful room to the upside. Moreover, the expected move through Sept. 26 is 7.13%, according to options pricing, with a projected range of $366.33 to $422.55.

    Given the recent rally and investor enthusiasm around Musk’s artificial intelligence roadmap, the upper bound appears more likely.

    The options data suggests traders are pricing in continued momentum in TSLA shares. However, with the EV stock already trading at stretched valuation, the bullish sentiment may be driven more by narrative than near-term catalysts.

    That said, the market evidently is leaning into Musk’s vision, at least for now.

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  • Mark Zuckerberg overtakes Elon Musk as the world’s 3rd-richest person as their companies’ stocks go in opposite directions

    Mark Zuckerberg overtakes Elon Musk as the world’s 3rd-richest person as their companies’ stocks go in opposite directions

    &quotThe internet is fickle,” Nierman told BI.JOSH EDELSON/Getty Images; Nathan Howard/Getty Images

    • Mark Zuckerberg has overtaken Elon Musk as the world’s third-richest person, with a $175 billion fortune.

    • Zuckerberg has gained $47 billion in wealth this year while Musk has lost $55 billion, according to data from Bloomberg.

    • The shift in wealth has been driven by Meta Platforms stock soaring and Tesla shares plunging.

    A near mirror image in stock-price performance has helped catapult Mark Zuckerberg ahead of Elon Musk as the world’s third-richest person, according to data from Bloomberg.

    Mark Zuckerberg had a net worth of $175 billion as of Wednesday, just slightly overtaking Musk’s net worth of $174 billion. That gap is set to widen on Thursday as shares of Tesla decline to a new 52-week low while Meta Platforms stock pushes toward all-time highs.

    Year-to-date, Zuckerberg has added $47.3 billion to his net worth while Musk has seen his net worth decline by $55.2 billion. That decline has knocked Musk down from the status of being the world’s richest person to the world’s fourth richest person.

    Musk is ahead of Bill Gates’ $149 billion fortune, while Zuckerberg is behind Jeff Bezos’ $203 billion fortune and Bernard Arnault’s $221 billion net worth.

    Driving the shift in fortunes for Musk and Zuckerberg is the performance of their respective stocks. Meta Platforms has surged 43% year-to-date, while shares of Tesla are down nearly 40%.

    Tesla stock price performance versus Meta PlatformsTesla stock price performance versus Meta Platforms

    YCharts

    Solid fourth-quarter earnings results, a newly initiated dividend, and growing investor enthusiasm for the impact artificial intelligence is having on Meta Platforms’ underlying business are in stark contrast to the slowing sales growth at Tesla, declining profit margins, and “thesis-changing” robotaxi pivot at Tesla.

    Zuckerberg’s source of wealth is extremely concentrated in Meta Platforms stock. The Facebook co-founder owns about 13% of the social media company. That’s in contrast to Musk, who has many business ventures driving his fortune, including Tesla, SpaceX, and X.

    Musk and Zuckerberg have been at odds with each other in the past, culminating in both agreeing to fighting in a cage match last year. The fight never happened.

    Read the original article on Business Insider

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  • Musk Wants Greater Control of Tesla Before Building Its AI

    Musk Wants Greater Control of Tesla Before Building Its AI

    (Bloomberg) — Elon Musk warned he would rather build AI products outside of Tesla Inc. if he doesn’t achieve 25% voting control, suggesting the billionaire wants a bigger stake in the world’s most valuable electric vehicle maker.

    Most Read from Bloomberg

    Musk, Tesla’s single largest shareholder with more than 12% of the company, was responding to a social media post questioning why he would need another large compensation package to stay motivated. He said the reason no new plan has been put in place is because the company is still awaiting a verdict in a shareholder suit against an earlier $55 billion package — an unprecedented amount at the time.

    Musk argued in a post on X that the car company is a collection of a dozen startups. He called for a comparison between Tesla and General Motors Corp., traditionally one of the auto industry’s global leaders. Tesla, for example, is developing the Optimus robot, and last month posted a video showing improvements it’s made to the humanoid prototype.

    The automaker is also investing more than $1 billion into its Dojo supercomputer project, which will train the machine-learning models behind the EV maker’s self-driving systems and which analysts have estimated could add $500 billion to Tesla’s value.

    At Tesla’s inaugural AI Day in 2021, Musk said he wanted to show that the company is more than just an electric carmaker, but is “arguably the leader in real-world AI.”

    “I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control,” the CEO posted on X. “If I have 25%, it means I am influential, but can be overridden if twice as many shareholders vote against me vs for me. At 15% or lower, the for/against ratio to override me makes a takeover by dubious interests too easy.”

    Musk said he would be fine with a dual-class voting structure to allow this, “but am told it is impossible to achieve post-IPO in Delaware.”

    After more than doubling in 2023, Tesla shares have fallen 12% this year, wiping out more than $94 billion in market value.

    The world’s richest person is grappling with shareholder dissatisfaction over a panoply of issues, from Tesla’s succession planning to accusations that he’s distracted by his work with X, the platform formerly known as Twitter that he bought for $44 billion in 2022 and sold billions of dollars in Tesla stock to fund.

    Read More: Elon Musk’s Drug Use Is the Latest Headache for Tesla’s Board

    The company has also been hit by a barrage of negative news: an about-face on EVs from car rental giant Hertz Global Holdings Inc., another price cut in China, and signs of rising labor costs.

    “What is Tesla? A car, energy, or AI company,” Daniel Kollar, head of consultancy Intralink’s automotive and mobility practice, said. “If it’s not an AI company, then I don’t see an issue establishing a new company. That said, I don’t see his behavior or choice of language benefiting any of his companies now.”

    (Updates with context on Musk’s $55 billion pay package from 2nd paragraph.)

    Most Read from Bloomberg Businessweek

    ©2024 Bloomberg L.P.

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  • Elon Musk says he won’t sell more Tesla shares for ‘probably’ two years

    Elon Musk says he won’t sell more Tesla shares for ‘probably’ two years

    Tesla shares rose slightly in after-hours trading Thursday after CEO Elon Musk promised not to sell any more shares in the electric carmaker. 

    “I won’t sell stock until, I don’t know, probably two years from now. Definitely not next year under any circumstances, and probably not the year thereafter,” Musk said in a Twitter Spaces conversation on Thursday evening.  

    The Tesla CEO has claimed before that he’s done selling Tesla. In April, after selling about $8.5 billion worth in Tesla shares, Musk pledged that he wouldn’t be selling any more Tesla stock.

    After that, Musk sold shares three more times: selling $6.9 billion worth in August, $4 billion worth in November, and another $3.5 billion worth last week. In total, Musk has sold about $39 billion worth of Tesla stock since their peak in November 2021. 

    Tesla shares rose about 1.2% in after-hours trading after Musk made his pledge, paring an 8.9% plunge during U.S. trading hours. Tesla shares are down about 16.6% since the weekend.

    The electric carmaker has slipped from the heady highs of last year, when it was one of a handful of companies to break $1 trillion in market value. Tesla shares have fallen 69.2% since their peak in Nov. 2021, and earlier this week, Exxon Mobil overtook Tesla in market value.

    Tesla shareholders argue that one cause for the share plunge is Musk’s simultaneous leadership of social media company Twitter. Musk has publicly disagreed, instead blaming the U.S. Federal Reserve’s interest rate hikes for making cars less affordable and creating a bear market. (While some tech shares, like those of Meta and Amazon, have declined by as much as Tesla, the broader market has not.)

    On the Twitter Spaces call, Musk claimed he hadn’t missed “a single important Tesla meeting” since taking over as Twitter CEO. He also claimed that Tesla was “a far more complex beast” to manage than Twitter, suggesting that the social media platform only had “10% of the complexity” as Tesla. 

    After losing a poll where 57.5% of respondents suggested he step down as Twitter’s CEO, Musk said he would hand over the position once he found someone “foolish” enough to take the job, yet said he would remain involved in the “software and server” teams. 

    Musk bristled at some comments on the Twitter Spaces call. After one participant shared a concern that the Tesla’s CEO’s political views and approach to content moderation on Twitter might hurt Tesla’s brand, Musk said he wouldn’t change anything about his communications. 

    “I’m not gonna suppress my views just to boost the stock price,” Musk said.

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    Nicholas Gordon

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