Gary Zhou 
- 📈 Wedbush Securities maintains a bullish stance on Tesla.
- 🤖 Elon Musk shared thoughts on Tesla’s AI initiatives, including DOJO and Full Self-Driving.
- 💼 Musk is uncomfortable growing Tesla in AI & robotics without ~25% voting control.
- 📉 Musk would consider building AI products outside Tesla without sufficient voting control.
- 🤝 Wedbush is confident Elon Musk and Tesla board will reach an agreement on AI initiatives.
In the ever-evolving landscape of technology and innovation, Tesla continues to be a frontrunner, not just in electric vehicles, but also in the realm of Artificial Intelligence (AI). A recent report sheds light on the dynamics surrounding Tesla’s AI initiatives, Elon Musk’s perspectives, and Wedbush Securities’ stance on the matter.
Wedbush Securities: A Bullish Outlook
Wedbush Securities, a prominent investment firm, maintains a bullish stance on Tesla. Despite the dynamic nature of the market, their confidence in Tesla’s potential remains unshaken. This unwavering optimism is reflected in their Outperform rating and a target price of $350.00 for Tesla.
Elon Musk’s Vision for Tesla’s AI
Elon Musk, the visionary CEO of Tesla, recently took to X to share his thoughts on Tesla’s AI initiatives. This includes a glimpse into projects like DOJO, the humanoid robot Optimus, and the much-discussed Full Self-Driving technology. Musk’s insights provide a window into the ambitious future he envisions for Tesla’s role in the AI landscape.
The Quest for Voting Control
However, amidst the enthusiasm, Musk expressed a degree of discomfort in steering Tesla toward becoming a leader in AI and robotics without having approximately 25% voting control. This revelation opens a conversation about the delicate balance between innovation and corporate governance.
Musk’s Contingency Plan
In a move that caught attention, Musk outlined his considerations if the desired voting control isn’t achieved. He contemplates the possibility of building AI products outside of Tesla, should he not secure the substantial voting control he seeks. This raises questions about the potential implications for Tesla’s AI projects and the broader technological landscape.
Risks and Realities
Musk didn’t shy away from discussing the risks involved in deepening Tesla’s involvement in AI without the desired voting control. His concern lies in the vulnerability to takeovers by what he refers to as “dubious interests” if his voting control remains at 15% or lower. This pragmatic assessment adds a layer of complexity to the strategic decisions surrounding Tesla’s foray into AI.
A Positive Outlook from Wedbush
Contrary to the uncertainties expressed by Musk, Wedbush remains optimistic. The investment firm believes that an agreement will be reached between Musk and the Tesla board regarding the AI initiatives. This positive outlook stems from their confidence in the collaborative and strategic decision-making processes within the company.
