TLDR:
- Europe’s largest pension fund (ABP) completely divested from Tesla in Q3 2024, selling a $585 million stake primarily due to concerns over Elon Musk’s $56 billion pay package
- ABP cited additional concerns including costs, potential returns, and Tesla’s working conditions as reasons for the sale
- Morgan Stanley raised Tesla’s price target from $400 to $430, with an $800 bull case scenario based on robotaxi potential
- Morgan Stanley projects Tesla’s global fleet to cover over 1 billion miles daily by 2030
- Tesla stock has shown strong performance, up 79% over the past year, though Wall Street maintains a Hold consensus
The electric vehicle market witnessed contrasting moves from major financial players regarding Tesla stock in recent months, highlighting the divided sentiment surrounding the world’s leading EV manufacturer.
Europe’s largest pension fund, Stichting Pensioenfonds ABP, made headlines by completely divesting its Tesla holdings during the third quarter of 2024. The stake, valued at approximately $585 million, was sold primarily due to concerns over CEO Elon Musk’s compensation package.
The Dutch pension fund’s exit came in direct response to Tesla shareholders’ approval of Musk’s $56 billion pay package in June 2024. An ABP spokesperson told Bloomberg that the fund “had a problem” with the compensation plan, which they had voted against, describing it as “controversial and exceptionally high.”
The timing of ABP’s sale proved costly for the pension fund. Tesla’s stock performance in the months following the divestment saw substantial gains, with shares trading at $387.09 at the time of reporting – representing potential gains of 45.7% to 112.7% from the third quarter’s trading range.

Morgan Stanley recently increased its price target on the company from $400 to $430, while maintaining an ambitious bull case scenario of $800 per share. The investment bank’s optimism stems largely from Tesla’s developing robotaxi business and its growing artificial intelligence capabilities.
Morgan Stanley’s four-star analyst Adam Jonas, who holds a 74% success rate on Tesla stock recommendations, projects that by 2030, Tesla’s global fleet will cover more than one billion miles daily. The firm’s analysis suggests that by 2040, Tesla could operate a mobility fleet of 7.5 million vehicles.
The revenue potential from this autonomous fleet appears substantial, with Morgan Stanley estimating $1.46 in revenue per passenger mile and a 29% EBITDA margin. These projections position Tesla’s operations favorably against competitors like Waymo and Uber in terms of cost efficiency.
The contrasting moves by ABP and Morgan Stanley reflect the broader market sentiment toward Tesla. Wall Street’s current consensus shows a split opinion, with 13 Buy ratings, 12 Hold ratings, and nine Sell ratings from analysts over the past three months.
Tesla’s stock performance has remained strong despite the mixed outlook, showing a 79% increase over the past year. However, the average price target of $322.56 suggests some analysts see potential downside risks.
The ongoing legal battles over Musk’s compensation package continue to influence market perception. After shareholders approved the package in June, a judge rejected it in December, leading Tesla to file an appeal. The company’s board has warned that any new compensation plan might carry higher costs.
Tesla’s stock reached new heights following Donald Trump’s victory in the 2024 presidential election, contributing to Musk’s personal wealth reaching the $400 billion mark.
During the third quarter of 2024, Tesla’s stock traded between $182.00 and $265.60, opening at $201.02 on July 1 and closing at $261.63 on September 30.
Morgan Stanley’s bull case for Tesla extends beyond current operations, leaving room for additional upside from potential future ventures in humanoid robots and aviation, though these factors aren’t included in current valuations.
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