Wedbush Securities has reiterated its confidence in Tesla’s future, maintaining an Outperform rating and a $350 price target, despite CEO Elon Musk’s recent comments on the company’s artificial intelligence projects. Musk’s statements highlighted his desire for significant voting influence to lead AI and robotics advancements at Tesla.
Musk’s Bid for Greater Control
Elon Musk made public his discomfort with Tesla’s trajectory in AI and robotics without holding approximately 25% of the voting rights. His concern is that without such control, Tesla could be susceptible to potentially harmful takeovers.
Wedbush’s Take on Tesla’s AI Future
Analyst Dan Ives from Wedbush believes the company’s AI ventures like DOJO, the humanoid robot Optimus, and Full Self-Driving capabilities, are expected to remain internal projects. He expressed optimism that an understanding between Musk and Tesla’s board can be achieved regarding Musk’s voting power.
In a post on the platform X, Musk noted he might have to consider developing AI initiatives outside Tesla if his demand for increased voting control was not met. He highlighted the heightened risk of venturing into deep AI without a stronger say in company decisions.
Musk explained that with a voting stake of 15% or less, the vulnerability to hostile takeovers by questionable parties becomes a realistic concern. This statement underscores his stance on the need for greater voting influence to safeguard Tesla’s direction.
