Tesla recently secured approval for Elon Musk’s $55 billion pay package and relocation to Texas, with Wedbush analyst Dan Ives hailing it as a “pop the champagne moment” for investors. This decision was seen as crucial, with concerns that Musk’s leadership at the company could have been at risk if the proposal had not been approved.
Ives expressed optimism about the outcome of the vote, stating that it would lift a financial burden from Tesla’s stock. The key issues in question were the relocation of the company to Texas and the approval of Musk’s pay package, which served as a vote of confidence in his leadership. If the pay package had not been approved, there were fears that Musk might lose interest in Tesla and focus on his other business ventures.
Despite Ives’ positive outlook on the shareholder vote, he acknowledged some challenges facing Tesla. Slowing demand for electric vehicles and increased competition from Chinese rivals have affected the company’s quarterly deliveries. In response, Tesla has reduced prices on its existing vehicles and introduced more affordable options to boost sales.
Guggenheim analyst Ronald Jewsikow also highlighted potential downside risks related to Tesla’s delivery expectations in upcoming weeks. However, Ives maintained an “outperform” rating on Tesla’s stock with a price target of $275, reflecting a 45% upside from current levels. The analyst consensus on Tesla’s stock’s price is currently around $173.
