Tesla shares are set to surge following the resolution of the firm's pay package issue, according to Wedbush Securities. CEO Elon Musk has been approved to receive his $46 billion compensation package, lifting the cloud of uncertainty that had been looming over the stock.
Shareholders Approve Musk's Compensation Package
Earlier this year, a Delaware court had blocked Musk's pay package, leading to concerns that Musk might consider leaving the company if shareholders did not approve it. However, on Thursday, shareholders voted in favor of Musk's compensation package, clearing the way for Tesla's future growth.
Analyst Bullish on Tesla's Future
Analyst Dan Ives expressed optimism about Tesla's prospects now that the pay dispute has been settled. With the overhang on the stock removed, Ives predicts that Tesla could see a significant increase, potentially reaching $350 in the next 12-18 months, representing a nearly 90% rise from the current price.
Shareholder Support for Musk
The overwhelming support from retail shareholders for Musk's compensation package underscores the belief that Musk is integral to Tesla's success. Ives emphasized the importance of ensuring Musk's continued leadership at Tesla, calling for the board to grant him a 25% ownership stake in the company, a move that Musk has advocated for.
Future Growth Opportunities
Musk's involvement in Tesla's AI projects and self-driving technology is crucial for the company's future growth and stock performance. Ives believes that Tesla's valuation could surpass $1 trillion next year, driven by upcoming catalysts such as the robotaxi day in early August.
Wedbush Securities' Outlook
Wedbush Securities maintains an "outperform" rating on Tesla, with a base case price target of $275, reflecting a 48% increase from the current levels. The resolution of the pay package dispute has positioned Tesla for a potential upward trajectory in the coming months.
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By: fdemott@insider.com (Filip De Mott)
Title: Tesla Shares Soar as Elon Musk’s $46 Billion Pay Package Dispute Resolved
Sourced From: markets.businessinsider.com/news/stocks/tesla-stock-price-rally-elon-musk-pay-package-ai-tsla-2024-6
Published Date: Fri, 14 Jun 2024 14:26:18 +0000
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