Stichting Pensioenfonds ABP, one of Europe’s largest pension funds, exited its entire Tesla (TSLA) holding worth $585 million (€571 million). The fund fully liquidated its 2.8 million stake in the third quarter of last year. The fund cited CEO Elon Musk’s humongous pay package as a reason when enquired about the exit yesterday. Furthermore, an ABP spokesperson said that investment costs, returns, and responsible investment requirements were also part of the consideration to sell.
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Musk and His Extravagant Pay Package
The news first became public when it was first reported by Dutch newspaper Het Financieele Dagblad. The report also attributed poor working conditions in Tesla as one of the reasons for ABP’s exit. During an earlier shareholder vote on Musk’s remuneration back in June 2024, ABP had voted against the proposal, calling it “controversial and exceptionally high.”
Large shareholders seem to be highly unhappy with the package of the electric vehicle (EV) maker’s CEO. A Delaware judge once again slammed down Musk’s request for the gigantic pay package last month, even though most shareholders had voted in favor. The value of Musk’s stock option package was roughly $2.6 billion at inception but has climbed to $56 billion at Tesla’s current share price.
Insights on TSLA from Bulls Says, Bears Say Tool
According to TipRanks’ Bulls Say, Bears Say tool, shareholders and analysts remain divided about their views on Tesla. The bulls are encouraged by the mighty autonomous vehicle potential, which accounts for nearly 50% of Tesla’s valuation coming from robotaxis in the future. Additionally, Tesla’s growing energy storage solutions business, its market-leading EV business, and global sales remain the top reasons for the bullish stance of some of the analysts.
On the other hand, the bears are concerned about the declining sales and market share in Tesla’s second-largest market, China, heated competition, and slowing EV production and capacity utilization.
Is Investing in Tesla Stock a Good Idea?
Currently, analysts prefer to remain on the sidelines on Tesla stock due to various reasons mentioned above. On TipRanks, TSLA stock has a Hold consensus rating based on 13 Buys, 12 Holds, and nine Sell ratings. The average Tesla price target of $322.56 implies 18.3% downside potential from current levels. In the past year, TSLA shares have zoomed 79.5%.
