Tesla, Inc. (NASDAQ:TSLA) largest outside shareholder is openly advocating for Elon Musk to fine-tune his approach to communicating with the market
For the third time in the past year, Tesla Inc.’s largest outside shareholder is openly advocating for Elon Musk to fine-tune his approach to communicating with the market.
There’s no need for Musk, an avid Twitter user, to be contained by a social-media blackout, James Anderson, a partner and portfolio manager at Baillie Gifford & Co., told Bloomberg Television. But there are ways the chief executive officer could change how he talks about Tesla that would be “fruitful,” Anderson said in an interview at Allen & Co.’s Sun Valley conference.
“One should, on the whole, try not to give too many targets that may not be attainable, with specific dates at establishment,” Anderson said Wednesday. “And I don’t think one wants sudden reversals of policy. I hope that’s not too much for a major shareholder to ask.”
Anderson, whose firm holds 13.2 million Tesla shares, said his comment about making goals applies to robotaxis. Musk, 48, said in April that by the middle of next year, 1 million Teslas will be on the road that are fully capable of driving themselves. Weeks later, Musk said autonomy could turn Tesla into a “half-trillion-dollar market cap company.”
Musk, who owns 34.1 million Tesla shares, has made several strategic U-turns in the past year. Ten days after blindsiding many employees with a plan to close all but a small number of the company’s stores, Musk backtracked. And within a span of less than three weeks last fall, he tweeted that he would try to take Tesla private, then abruptly abandoned the pursuit.
Call for Peace
Less than a month before Musk’s take-private tweets, Anderson called for a period of “peace and execution” for Tesla, which was struggling at the time to ramp up production of the Model 3 sedan. In March of this year, Anderson said Musk should be “enabled to step back from having to feel so driven to comment” about Tesla, adding that the CEO “can be in the background.”
While Tesla shares have fallen 28% this year, they’re outperforming Chinese electric-vehicle challenger NIO Inc., whose New York-listed stock has plummeted 42%. Baillie Gifford is the Shanghai-based company’s top shareholder, with a 13% stake, according to data compiled by Bloomberg.
“We believe in the process of exponential technologies over periods of 10 years and more,” Anderson said of Baillie Gifford’s investment case for both NIO and Tesla. “It’s frankly close to inevitable — nothing’s ever inevitable, but close to inevitable — that electric vehicles will be a dominant factor in 10 years’ time.”
Tesla slipped 0.3% to $238.25 as of 8 a.m. Thursday in New York, before the start of regular trading. NIO was unchanged at $3.68.
Anderson isn’t alone in weighing in on Musk’s outspokenness. In April, fellow billionaire Warren Buffett questioned whether the Tesla CEO needed to tweet so much.
“He’s a remarkable guy. I just don’t see the necessity to communicate,” Buffett said in an interview with Yahoo Finance. He added that Musk had “room for improvement” in behaving like a CEO.
For all the suggestions he’s publicly made to Musk, Baillie Gifford’s Anderson is far from a critic.
“The last thing we want to do — and I would be resilient about this — is to in any way crimp the great gifts and extraordinary achievements that Mr. Musk does have,” he said.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 257.52.
The projected lower bound is: 219.67.
The projected closing price is: 238.60.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 64.3544. This is not an overbought or oversold reading. The last signal was a sell 20 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 63.74. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 26 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 128.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 25 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -0.320 at 238.600. Volume was 31% below average (neutral) and Bollinger Bands were 47% narrower than normal.
Open High Low Close Volume___
238.140 241.500 235.800 238.600 7,484,306
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 230.39 219.31 283.72
Volatility: 36 56 69
Volume: 8,065,639 11,300,694 9,694,774
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
TESLA INC is currently 15.9% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 19 periods.