Tesla shareholders have approved Elon Musk’s $55 billion pay package and the company’s relocation to Texas. This was seen as a significant moment for Tesla investors, with analyst Dan Ives from Wedbush calling it a test of Musk’s 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. However, 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. Other analysts were less optimistic, expressing concerns 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.
