Regarding the way Tesla’s shareholders voted, at least one expert has very high hopes.
In a report on Thursday, Dan Ives, an analyst at Wedbush Securities, referred to Tesla CEO Elon Musk’s triumph as a “pop the champagne moment” for investors. Ives projected that the outcome of the much-awaited vote would eliminate a $20 to $25 premium on the stock of the EV manufacturer.
The ratification of Musk’s $55 billion compensation plan, which was primarily viewed as a referendum on his leadership, and the company’s relocation from Delaware to Texas were the two main topics of discussion during the Tesla vote.
Ives, a Tesla bull, stated in the note that “if this proposal went south a lot of bad things and scenarios could have happened including Musk beginning a path to not being CEO of Tesla.” “Instead it’s roses and rainbows today in Austin.”
Ives’ remarks on the possibility that Musk would quit Tesla coincided with mounting worries that, in the event that the compensation package was withdrawn, Musk may gradually grow disenchanted with the industry titan and turn his focus to other projects.
In January, the CEO of Tesla similarly threatened to cut back on AI research if he didn’t hold at least 25% of the votes.
For his part, Ives gave the company a “outperform” rating and set a price target of $275, which would mean a 45% increase from the present price. According to analyst consensus, the stock is worth roughly $173.
Ives discussed the declining demand as a challenge for Tesla despite his upbeat remarks.
In April, Tesla revealed its lowest quarterly deliveries since 2022 and its biggest-ever loss compared to analyst projections, amidst erratic demand for EVs generally and strong competition from Chinese rivals.
To boost demand, it announced the introduction of less expensive cars and lowered the pricing of existing cars in the same month.
