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Tesla Bull Urges Board Shake-Up; Why Steve Jobs Would Love Apple’s Stock Chart

Dow Jones futures rose modestly late Monday, along with S&P 500 futures and Nasdaq futures. A longtime Tesla (TSLA) bull said after the close that the electric-vehicle maker needs a board shake-up to rein in Elon Musk, even as Tesla stock rebounded strongly Monday. Apple stock fell for a fourth straight session in above-average volume, paring gains from a big run. It’s a situation that underscores how investing is an art as well as a science. That’s something that late co-founder Steve Jobs would appreciate, given the Apple co-founder’s lifelong pursuit of designing products for form as well as function.

Dow Jones Futures Today

Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures climbed 0.2%. Nasdaq 100 futures advanced 0.3%. Keep in mind that Dow Jones and other overnight action often doesn’t translate into actual trading in the next regular session.

In Monday’s stock market trading, the Dow Jones fell 0.2%. But the S&P 500 index climbed 0.2% and the Nasdaq composite 0.3%, as both snapped four-day losing streaks.

Apple Stock Chart

Apple stock fell 1.3% to 218.33 on Monday, sliding yet again in above-average trade. Shares are now 5% off their Sept. 5 peak of 229.67. But that follows an 18% move from an 184.30 flat-base buy point after the Apple earnings report late on July 31.

This is where investing becomes as much of an art as a science, which is something Steve Jobs excelled at. Sometimes there are clear rules. Buy leading stocks breaking out in high volume past this entry point. Sell if a stock falls 7%-8% from your purchase price. But sometimes investors must make judgments. Do you hold Apple stock during the current pullback or take at least partial profits? If you hold firm you could reap big long-term gains. But you could also see your short-term gains wither further. Ultimately, such decisions depend on your general risk tolerance and your conviction in a particular stock. You might believe in the Apple stock story, making you more willing to hang tough in a pullback than you would with a volatile IPO with less of a track record.

Tesla Stock Bull Urges Board Shake-Up

Tesla CEO Elon Musk is often compared to Steve Jobs, who might have loved Tesla’s car design and technology. But not the Tesla stock chart. It’s not working: Shares have been struggling for nearly a year, even though Tesla stock rebounded 8.5% to 285.50 on Monday. And the chart is aesthetically unappealing, with wide-and-loose trading.

After the close, longtime Tesla stock bull Gene Munster of Loup Ventures urged a shake-up of the company’s board in a CNBC commentary.

“If Tesla doesn’t make some changes, starting with the board, it could spell the end for the company,” he said.

Munster stressed that Elon Musk is vital to Tesla’s success, but that his recent behavior is spurring top executives to leave, making it harder to attract talent and generally turning people against Tesla. He said the main problem is that Elon Musk is “surrounded by people unwilling or unable to stand up to him,” with the board a prime example.

Munster urged Elon Musk to step down as chairman, along with another non-independent board member. He suggested former Boeing (BA) CEO Jim McNerney or even ex-Vice President Al Gore, currently on Apple’s board, as a possible chairman. Munster also suggested that board members with close ties to Musk to voluntarily step down.

Tesla stock fell a fraction in late trading, following the big regular-session gain. On Friday, shares plunged to a five-month low. The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, tumbled to an 18-month low.

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