Analysts at Wedbush said in a note to clients Friday that it's time for the Tesla (NASDAQ:TSLA) board to change the narrative, and they see three actions that need to happen.
The Tesla narrative is as negative, said the analysts, who have an Outperform rating and $315 price target on the stock, with the last few years seeing Musk and Tesla getting attacked by bears from all directions.
"Taking a step back, we have been here before with Musk/Tesla a number of times over the last decade as the doubters have said the Tesla story is done and electric vehicles are a fad, not a long-term transformational trend that will change the auto industry," the analysts wrote.
"We could not disagree more with the ultra-negative Tesla narrative building and forming a black cloud over the stock," they added.
Wedbush believes the uncertainty around Musk at Tesla and overall AI initiatives has been a $40 to $50 per share overhang on the stock, and they feel the Tesla board needs to do three things to stop "this Category 5 hurricane over Tesla's stock."
Firstly, the analysts said they should create a new comp package that supersedes this 2018 one, along with a new package post-proxy that will be voted on at the next shareholder meeting in May.
Secondly, they say the board should devise a new comp package that would get Musk directly to the 25% voting share bogey. It should be voted on at the next shareholder meeting.
Finally, Wedbush believes Tesla moving to Texas would clear the way for the board to go down the path "to get Musk towards the 25% voting rights and do a comp package that supersedes the 2018 plan; making the Delaware ruling noise."
"For Tesla, we believe moving out of Delaware to Texas is the only decision," concluded the analysts.