News
Tesla shareholders passed Elon Musk’s $1 trillion package. What analysts are saying
Published
7 months agoon
By
admin
Most Wall Street analysts remained divided on Tesla ‘s future after the electric vehicle maker’s shareholders voted to pass CEO Elon Musk’s nearly $1 trillion pay plan. The pay plan, introduced in September, garnered 75% support among voting shares. Results were announced at the company’s annual shareholders meeting on Thursday in Austin, Texas. Specifically, the pay package consists of 12 tranches of shares that Musk would be granted if Tesla hits certain milestones over the next decade. It would also increase Musk’s ownership and voting power in the company. Analysts highlighted pros and cons from the passage. On the former, they noted that it likely ensures Musk stays as Tesla’s chief exec. On the latter, however, they raised questions over how Musk will execute to reach the lofty goals set. Here’s what they said. UBS: sell rating, $247 Analyst Joseph Spak’s target implies about 44% downside from Tesla’s Thursday close. “This award clears the way for ~$1T in awards to Elon Musk if a series of 12 market capitalization and 12 operational milestones are met. We expected this to pass and based on conversations with investors believe it was widely expected to pass. Tesla announced that preliminary results show 75% voted for the proposal. This likely ensures Musk stays at Tesla, removing a potential overhang, and allows him to focus on his AI vision autonomous, humanoids towards achieving the goals.” Barclays: equal weight, $350 Barclays’ forecast corresponds to downside of around 22%. “While there were few surprises at today’s Tesla AGM, the event broadly reminded us of the excitement investors face ahead on Tesla’s growth prospects. Yet we believe the key question for the stock now remains on the execution path for Tesla’s growth initiatives.” Goldman Sachs: neutral, $400 Goldman Sachs’ target calls for 10% downside going forward. “Given that the 2025 CEO incentive award was preliminarily approved, we believe investor focus will now shift to the potential for Tesla to achieve these objectives, as well as on key milestones and datapoints including: 1) Tesla’s plan to remove safety observers from its robotaxis in Austin before year-end; 2) The timing for personal FSD to become unsupervised; 3) 4Q automotive deliveries (likely reported in early January); and 4) the unveil of Optimus V3 (which the company suggested on its 3Q earnings call could occur in late 1Q).” Bank of America: neutral, $471 Analyst Federico Merendi’s forecast is 6% above Tesla’s Thursday closing price. “The shareholder vote for Musk’s compensation package was overwhelmingly positive with a 75% approval rate. Potential investment in xAI was approved as well. All the other proposals in the proxy were voted on in-line with the suggestions from Tesla’s Board of Directors, excluding the proposal for the annual re-election of board members.” Baird: outperform, $548 Baird’s price target was approximately 23% higher than Tesla’s closing price on Thursday. “TSLA’s CEO performance award was approved by shareholders with 75% voting in favor. We expect this to be a modest positive for the stock, but more importantly, avoids what we believe would’ve been a more drastic negative impact. There are still questions that remain such as what will come of the legal dispute pertaining to the previous pay package. That said, we do not view this as an overhang for investors and believe the focus will now pivot to rolling out new products and TSLA’s AI ambitions.”
This industrial giant is emerging as a big AI play, says Wells Fargo
Novo Nordisk’s strategy tested as investors push back on board revamp
Alibaba plans AI subscriptions, stablecoin-like payments with JPMorgan
UK borrowing costs spike on report government to scrap plans to raise income tax
Trump’s threatened the BBC with a $1B lawsuit: Here’s what’s going on
UBS’s picks for global returns next year
Wells Fargo sees Caterpillar continuing to roar higher, emerging as an artificial intelligence play. The bank initiated shares of...
Flags with the logos of Danish drugmaker Novo Nordisk, maker of the blockbuster diabetes and weight-loss treatments Ozempic...
Key Points Alibaba plans to use “tokenization” of payments for cross-border transactions in its business-to-business arm. Kuo Zhang, president...
Rachel Reeves, U.K. chancellor of the exchequer, delivers a speech in London, UK, on Tuesday, Nov. 4, 2025. Bloomberg...
US President Donald Trump speaks to reporters as he arrives at Palm Beach International Airport on Oct. 31,...
Investors looking for global diversification opportunities should look to a specific subset of stocks in Europe, according to UBS...
Eakarat Buanoi | Istock | Getty Images LISBON, Portugal — Top tech executives told CNBC they’re concerned about...
Tan Su Shan, deputy chief executive officer and managing director of institutional banking at DBS Group Holdings Ltd., speaks during...
CHENGDU, CHINA – OCTOBER 18: People walk past the Louis Vuitton store at Taikoo Li, a high-end shopping area that...
The United States said Thursday it will remove tariffs on some foods and other imports from Argentina, Ecuador, Guatemala and...
