Tesla Stock Rises, But Major Investors Are Still Leaving — Here’s Why
Tesla’s stock jumped 7.7% in after-hours trading, but investors are pulling out. Elon Musk says he’s stepping away from politics to refocus on Tesla, but concerns remain.
Gary Black, a long-time Tesla bull, has sold all his shares, saying the stock’s valuation no longer matches fundamentals. He points to a P/E ratio of 188x, falling earnings estimates, and weak delivery numbers — predicting a 12% drop in Q2 deliveries and 10% for the full year. He also sees little value in the upcoming “affordable” Tesla model or robotaxi trial.
Black’s price target: $310, down from the current $358.
Investors Want Elon Focused
A group of shareholders is demanding Elon commit 40 hours/week to Tesla. They blame his political distractions, including his role in the “US DOGE Service,” for damaging Tesla’s image and hurting sales. Tesla’s latest earnings showed a 71% profit drop and 13% sales decline year-over-year.
The group also wants a succession plan, limits on outside board roles, and an independent new board member — highlighting concerns that Tesla’s board is too close to Musk.
In December 2024, a court already struck down Elon’s $56B pay package over board conflicts.
Bottom Line
Despite a stock bump, investors worry about overvaluation, declining performance, and Musk’s lack of focus. Whether Tesla can regain their trust depends on real execution — not promises.
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