‘Hold on Tesla and wait,’ don’t buy right now: Strategist

A Tesla (TSLA) shareholder vote approving CEO Elon Musk’s enormous pay package has sparked renewed enthusiasm in the EV maker as it branches out from just an automotive company, branching out into AI, robotics, and energy.

Summit Global Investments CIO Dave Harden calls Musk’s compensation package “excessive” and is bearish on the stock at this time.

“I wouldn’t buy Tesla at this time. Elon Musk is an outspoken leader, and I think that there’s going to be much more chatter and much more opportunity to get in when you can see clearly that the growth is going to happen. So the major growth is behind us. We know that, that’s very clear, but I think you’re going to hear more about that in the future,” Harden tells Yahoo Finance, adding: “So if you’re a managed risk investor I would probably hold off on this investment. If you’re a growth investor, I would also probably hold on.”

Yahoo Finance spoke with analysts and Wall Street experts who are expressing renewed bullishness on Tesla stock, including Wedbush’s Dan Ives — whose latest call sees Tesla’s market cap reaching over $1 trillion in 2025 — and Ark Invest (ARKK) Founder, CEO, and CIO Cathie Wood, who believes the stock price could reach $2,600 by 2029.

Also, Clean Energy Transition CEO and Portfolio Manager Per Lekander — a long-time short-seller of the stock — explained his latest price target on Tesla shares: $15.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Luke Carberry Mogan.

Catch up on Yahoo Finance’s coverage of all things Tesla, Elon Musk, and his pay package saga:

Tesla is in ‘incredibly enviable’ position for real-world AI

‘Don’t fire Steve Jobs’: Tesla analysts react to approval of Elon Musk’s pay package

Tesla is biggest market bubble in world history: Short seller

Don’t bet against Elon Musk: Dan Ives talks $1T Tesla call

Elon Musk wins Tesla shareholder battle to keep his record-breaking pay

Elon Musk has been integral to Tesla’s growth, AI: Cathie Wood

Musk’s pay battle is not over. Here’s why.

Is Elon Musk the right fit as Tesla’s CEO?

Video Transcript

Hey, our top story today, Tesla shareholders re approving Elon Musk’s multi billion dollar compensation package which was struck down by a Delaware judge earlier this year.

Now, there’s a lot of chatter across Wall Street about what ripple effects this has for the company shareholders and the value of the stock.

Of course, taking a look at Tesla shares 90 minutes into the trading day.

We’re seeing a reversal of some of those earlier gains here with more reaction.

Story continues

We’ve got Dave Harden summit, Global Chief Investment Officer, Dave.

Let me just get your reaction to what we saw in the voter uh and the shareholder vote yesterday.

Well, I think that there’s a couple things, one it does align Musk’s interests with the company.

Let’s let’s face it.

He’s very incentivized now.

It encourages him to drive Tesla’s growth and it helps to retain him there.

He’s not going anywhere and there’s a big vote of confidence.

That’s the pros the the negatives here.

It is very easy to see.

This is excessive, this is a, a very large compensation package.

It’s significant dilution possibilities for shareholders and it causes one to want to do things that are risky.

Now, that’s nothing new for Elon Musk.

Right.

So we, we, we know his personality, but it also creates the possibility for income inequality throughout the company.

If someone right above you is making 56 billion and you’re making 56,000, there’s, there’s this large, uh you know, disparity.

So what does it do to the workers as well?

They just laid off a lot of workers.

So these are kind of the issues at stake right now.

And so Dave, I, it was perhaps a little bit of a tease for that.

So here we, we do have it.

Now.

We’ve had a couple guests on Tesla today and uh we’ve seen a couple of different perspectives and opinions about where the company is headed.

Let’s take a listen and then I’ll get your reaction betting against Musk.

It’s been the wrong move and I think this has clearly been a turbulent period, but I could see that Cinderella story starting again as we go into 2025.

Tesla is the biggest, um, stock market bubble in world history.

My price target is $15.

So Dave, what say you, where do you fall on this debate?

Well, I don’t know if it’s going to $15 and I don’t know if it’s going to the moon per se, but I want to buy Tesla at this time.

Elon Musk is an outspoken leader and I think that there’s going to be much more chatter and much more opportunity to get in when you can see clearly that the growth is going to happen.

So the major growth is behind us, we know that that’s very clear, but I think you’re going to hear more about that in the future.

So uh the other thing I would say is this is, you know, 1.6 beta stock, this is an 80 plus pe I know that’s not the story here, but there’s a lot of unpredictability with Elon Musk.

So if you’re a managed risk investor, I would probably hold off on this investment.

If you’re a growth investor, I would also probably hold on.

So my thing right now would recommend to hold on Tesla and wait if you’re in the shares, I’d probably sell.

Interesting.

Ok.

So Dave, this comes back to the importance of, of Elon Musk and Dan Ives was telling us earlier that Tesla is Elon Musk.

Elon Musk is Tesla.

And there’s always gonna be the overhang, the thought for investors about how much time he’s committing to Tesla versus his other entities.

Does this solidify for investors that they’re going to get even more of his attention?

Because it’s, it’s always gonna be divided.

It’s never gonna be undivided.

Well, he a absolutely, it gives him more attention than he’s had before.

That is for sure.

But he is a serial entrepreneur.

He’s a producer.

He’s a doer, right?

So I don’t think this is gonna stop him from wanting to make things happen in other areas of his life and in other companies, that’s for sure.

But I do think that this does align his.

And so for those that are worried about Lan, worried about keeping him with the company and worried about his focus, I can see why they approve this to keep him there because it definitely does back.

And so optimists, a lot of people are trying to also figure out does robots change the investment thesis on this company?

You know, there’s a lot of opportunity here for sure.

But no, I don’t think that does that at this time.

I think that it’s more of a wait and see.

Let’s see what he does.

He needs to.

He, he’s done a lot of uh entrepreneurial things and brought this company to, to be where it’s at today.

But what can he do with it from here on out?

That’s the question, you know, even as we, we look here on out, what, what kind of company do you believe this is, Dave?

Is it an automotive company?

Is it a technology company?

Is it A I?

Is it a energy company?

Well, with this new package, it’s not gonna be just an automotive company.

There’s not enough room for growth in just automotive alone.

He has to turn to A I, he has to turn to other areas to get the growth that he wants.

We know the vehicle sells where they’re at, they’re not gonna move that much for his taste.

So this has to be more than an autom company.

If you’re investing for growth, if you’re investing for automotive, then then you’re probably in the right space, slow growth ahead.

And you mentioned whether or not investors should be investing in Tesla at this juncture.

And you said no.

So where else are the opportunities you would be looking at?

Well, there’s a lot of other opportunities.

For example, if you’re, if you’re really looking to invest in Tesla, you’re looking for growth.

And I don’t think you’ve missed out on some of these A I momentum that are, are happening right now.

And let’s just take a look at Microsoft Microsoft has high quality earnings.

Microsoft has A I opportunities that is just beginning now to unleash.

And I think the next phase of A I is in the software and unlocking the value of A I within.

Wouldn’t it be nice if A I was right in Microsoft, Excel M Microsoft outlook, Microsoft, you know, et cetera, the software opportunity for A I is just beginning.

And so I think there’s other opportunities for growth that are much more prevalent and at hand where Tesla, I think is in the future, if Musk can do it.

All right, Dave Harden Summit, Global Chief Investment Officer.

Thanks very much for taking the time here with us today.

I appreciate it.

You’re welcome.

Thank you for having me.