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Ives, Munster Like Tesla's New Board Members

Ives, Munster Like Tesla's New Board Members

Tesla Inc (NASDAQ: TSLA) shares were trading higher Friday after the company named Larry Ellison and Kathleen Wilson-Thompson to the board of directors as part of a Securities and Exchange Commission settlement. 

Ellison, co-founder and executive chairman of Oracle Corporation (NYSE: ORCL), will join Wilson-Thompson, the global head of human resources at Walgreens Boots Alliance Inc (NASDAQ: WBA), on Tesla's board effective immediately.

Loup Ventures: 'Rare Peer'

Ellison is not only a "rare peer" to Musk, but "Larry was Elon before Elon was Elon," Loup Ventures' Gene Munster and Doug Clinton said in a blog post. Although Ellison is the "obvious headline add" to Tesla's board, Wilson-Thompson adds a needed skill set to Tesla in terms of human resources, according to Loup Ventures.

Tesla continues to suffer from talent drain, likely due to Musk's behavior, so Wilson-Thompson's involvement with Musk at the board level "could be influential" in not only attracting top talent but building a "sustainable organization," Munster and Clinton said. 

Wedbush: 'Home Run' Picks

The new additions to Tesla's board are a "home run" pick given Ellison's reputation in the technology industry, especially in Silicon Valley and Wall Street, Wedbush's Daniel Ives said in a research report. Ellison's influence on technology dates back more than four decades, and he and should be seen as a "step forward" for Tesla in creating an "independent and well regarded board" to move the carmaker forward, the analyst said. 

Ellison is the founder of Oracle, "one of the most successful technology stalwarts" ever created, and he built the company from the ground up, Ives said. His inclusion on the board is a major asset for Tesla and could help channel Musk's "energy and passion into positives going forward," which would mark a reversal from past blunders, most notably the $420 go- private Tweet and subsequent fallout, according to Wedbush. 

Ives Justifies Bullish Stance 

Speaking as a guest on "Bloomberg Technology" Wednesday, Ives said Tesla bears are wrong on several fronts.

The following assumptions are incorrect, the analyst said:

  • A capital raise is imminent.
  • Near-term profitability can't be sustained over the long-term.
  • Core demand isn't as strong as it should be.

These three points are part of a show-me story for Tesla, and the company started proving bears and doubters wrong in the third-quarter earnings report, Ives said. The upcoming Q4 report should show a continuation of momentum and "solidify" the bull thesis —although the bull vs. bear "knife fight" will continue, he said. 

Related Links:

Tesla's China Concerns, SpaceX Synergies At Top Of Mind For Morgan Stanley

Goldman Sachs Still Bearish On Tesla Ahead Of Tax Credit Cut

Larry Ellison photo by Oracle via Wikimedia. 

Latest Ratings for TSLA

Jan 2021WedbushMaintainsNeutral
Jan 2021Edward JonesInitiates Coverage OnHold
Jan 2021Credit SuisseMaintainsNeutral

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