By
Bena Ilyas
April 23rd, 2024
Wedbush analyst Dan Ives thinks Tesla is preparing to shift focus to become a pure technology company.
Tesla Inc (NASDAQ: TSLA) CEO Elon Musk now has been given a new title ‘Technoking of Tesla’, according to an 8-K SEC filing Monday. Besides, the company also changed its CFO title to ‘Master of Coin’. However, Tesla disclosed that both Musk and Zach Kirkhorn will maintain their original titles.
“Effective as of March 15, 2021, the titles of Elon Musk and Zach Kirkhorn have changed to Technoking of Tesla and Master of Coin, respectively,” the company noted in the SEC filing.
Tesla stocks responded positively to the news as they closed yesterday trading at $707.94, up 2.05%. Meanwhile, Tesla’s stock had dropped approximately 0.42% during the after-hours trading session to trade around $705.
Although the move to change Musk’s and Zach’s titles is not clear at the moment. Wedbush analyst Dan Ives thinks Tesla is preparing to shift focus to become a pure technology company. Moreover, Tesla recently entered the digital asset industry by purchasing $1.5 billion worth of Bitcoin. Thereby naming the CFO as the Master of Coin.
Company’s Future Prospects with ‘Technoking of Tesla’ Leadership
Tesla stock experienced one of its successful financial years in 2020 amid the coronavirus crisis. Notably, investors who purchased Tesla stocks at the beginning of 2020 saw their portfolio up sevenfold by the end of the year. Meanwhile, Tesla stock is sitting at a critical crossroad that might see a new all-time high in the near future. Technically speaking, the four-hour chart is extremely bullish, bolstered by the fact that the 200 MA just crossed the support level. Another technical point of view that suggests Tesla stock is on the verge of a major breakout in the near term is the bullish divergence on the RSI.
However, Tesla stocks heavily rely on the fundamental aspects besides the speculative trading aspect. A survey by MarketWatch indicates 34 Wall Street analysts are not sure of the next Tesla stock movement thus assigned an average of a Hold rating.
Ahead, Tesla is seeking to further scale its semi-truck according to Musk’s recent tweets. Notably, Tesla disclosed Monday that Jerome Guillen, president of automotive, has transitioned to the role of President, Tesla Heavy Trucking.
In a note to investors, Ives states that Tesla anticipates doubling its semi and trucking vision in the coming years.
However, the company is still capped by a limited battery supply for the electric semi-truck. Tesla has partnered with major battery producers and also has put in place measures to start producing its battery cells in coming years.
Tesla’s market valuation has risen significantly in the past year to hold the leading position in the automotive industry. Notably, Tesla has a market capitalization of approximately $665.88 billion with 959.85 million outstanding shares.