Tesla’s shareholders have given approval to Elon Musk’s $55 billion pay package and the company’s relocation to Texas. Analyst Dan Ives from Wedbush called this a significant moment for Tesla investors, noting that if the proposal had not been approved, negative consequences might have occurred. The vote focused on the relocation to Texas and Musk’s pay package, which was seen as a test of his leadership.
Ives was optimistic about the outcome of the vote, stating that it removes a potential overhang on Tesla’s stock and avoided possible scenarios where Musk may have departed from the company. He also mentioned concerns about slowing demand for Tesla vehicles, especially in a market with competition from Chinese rivals. This led to the company’s lowest quarterly deliveries and a significant miss compared to analyst expectations.
Despite these headwinds, Ives maintained an “outperform” rating on Tesla, with a price target suggesting a 45% upside from current levels. This positive outlook was balanced by concerns from other analysts about potential downside risks in the near future, particularly in terms of delivery numbers. Overall, the outcome of the shareholder vote was seen as a positive development for Tesla and its investors.