(CercleFinance.com) – Tesla shares climbed more than 6% on Thursday on the New York Stock Exchange, while its CEO Elon Musk affirmed on X that the group’s shareholders ended up approving, ‘by a large majority ‘, his very controversial compensation plan.
The businessman indicates that the general meeting of the electric vehicle manufacturer, which is being held today, is also moving towards approval of the project to move the headquarters to the state of Texas, again in a very wide.
In a reaction note, analysts at Wedbush Securities believe that Elon Musk can ‘pop the champagne’ after the vote on these two controversial resolutions.
‘This removes the sword of Damocles which hung over the title and which could have penalized the value of the action to the tune of 20 to 25 dollars’, underlines the brokerage company.
Investors feared that without obtaining these elements of remuneration, Elon Musk would be less involved in the company’s projects in terms of artificial intelligence and automation.
‘However, without the prospects of AI and autonomous driving, Tesla’s long-term earnings trajectory would be seriously compromised,’ say analysts at Canaccord Genuity.
Some professionals even feared a pure and simple departure of Musk from the management of Tesla in the event that his compensation package had been rejected by the shareholders.
According to this incentive mechanism, which dates back to the 2018 financial year, the billionaire could obtain up to 56 billion dollars thanks to the granting of ‘stock options’.
Although the performance criteria were met, this amount aroused the ire of certain shareholders and the compensation plan ended up being canceled by a Delaware court last January.
‘We can now expect Musk to renew today in Austin (…) his commitment to remaining CEO of Tesla for the next three or five years,’ says Wedbush.
The broker also expects the manager to detail plans for a model below $30,000, his initiatives in autonomous driving and to say more about the reveal, scheduled for August 8, of the famous ‘robotaxi’.
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