Wedbush Securities analyst Dan Ives stated in a note on Thursday that he believes Tesla’s (NASDAQ:TSLA) proposed ratification of CEO Elon Musk’s 2018 compensation plan would be overwhelmingly approved by the electric vehicle maker’s shareholders. The ratification of Musk’s 2018 pay package, Ives noted, should lift one of the persistent overhangs on Tesla stock.
Tesla has been urging its investors to approve the ratification of Elon Musk’s 2018 CEO Performance Award, thanks in no small part to the fact that the goals of the ambitious and daring plan have already been reached. In his note, Ives stated that it would be pertinent for the electric vehicle maker to leave behind such distractions.
“On the Musk $56 billion comp package, which was already approved by shareholders at the time in 2018, this has been an area of hot-button contention among some investors, but we would expect the 2018 package will be overwhelming reapproved, and the Delaware court ruling would be moot in essence as Tesla will now be moving to incorporate in Texas. This issue has been an overhang on Tesla’s stock and this will be important to move this distraction in the rearview mirror.
Ives also shared his thoughts on Tesla’s Board of Directors.
“The Board slate is also set to be voted on, which includes the reelection of Kimbal Musk and James Murdoch. As the saying goes….’ They Started It, We Will Finish It.’ This will now be the mantra for Musk and the Board around moving Tesla from being incorporated in Delaware to Texas at its upcoming shareholder meeting next week after the shocking ruling from the Judge in Delaware voided Musk’s pay package. The shareholder meeting combined with the current state of affairs at Tesla all sets up for more fireworks over the coming months, including the highly anticipated August 8 event around robotaxis,” the Wedbush analyst wrote.
Dan Ives reiterated his “Outperform” rating on Tesla stock. His price target for the electric vehicle maker is $275 per share.
As noted in an Investing.com report, Musk would have the opportunity to establish autonomy as a critical portion of Tesla’s future at the upcoming 2024 Annual Stockholders’ Meeting, also dubbed as the 2024 Cyber Roundup as per the company’s invites to the event.
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