After consolidating for most of October, shares of Tesla Inc. NASDAQ: TSLA are once again knocking on the door of a potential breakout. The stock closed around $450 on Monday, Oct. 27, only a few percent shy of the $470 high from earlier in the month, and there are reasons to think more gains could be on the way.
Tesla Inc.'s (NASDAQ: TSLA) sales problems around the world continue.
Tesla shareholders are set to vote on Elon Musk's $1 trillion pay plan on November 6. Proxy firms have criticized the massive pay package, leading Musk to brand them "corporate terrorists.
"There is no other person that is Elon," says Tesla Board Chairman Robyn Denholm as the company prepares to name a new chief executive officer from inside if shareholders reject Elon Musk's proposed $1 trillion pay package and he steps down Click Here
Tesla is looking at internal CEO candidates if Elon Musk leaves in case the $1 trillion pay plan is not passed at the annual shareholder meeting next week, Bloomberg News reported on Tuesday, citing the automaker's board chair.
Shareholders will have until November 5th to vote for the current proposed pay package for Tesla ( TSLA ) CEO Elon Musk. The pay package could be valued at a staggering $1 trillion if lofty performance targets are met over the next decade.
Tesla, Inc.'s $1T CEO compensation plan, if approved, removes a major "Elon Musk might leave" overhang. I believe the CEO is what sustains Tesla's premium and, if cleared, a relief rally is likely. If the plan fails, Elon could leave Tesla. In that scenario, I see TSLA stock rerating toward auto peers, with a 90% downside at 35x next-year P/E. Fundamentals aren't the bull driver. Energy storage grew 44% YOY but took $200M of $400M Q3 tariff headwinds. Auto revenue was up just 5.9% YoY, with market share declining.
Tesla Inc.'s sales in Europe are on the decline as Chinese companies, including rival BYD Co., continue to increase their share of the market.
Tesla stock has surged by almost 2x from lows seen in March, driven by optimism surrounding the company's bets on artificial intelligence and fully autonomous driving and CEO Elon Musk's return to the company, following his brief stint in Washington.
Tesla (TSLA) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Tesla Inc (NASDAQ:TSLA) chairperson Robyn Denholm urged its shareholders for the second time in as many weeks to approve CEO Elon Musk's $1 trillion compensation package, saying failure to do so could result in Musk leaving the company. "If we fail to foster an environment that motivates Elon to achieve great things through an equitable pay-for-performance plan, we run the risk that he gives up his executive position, and Tesla may lose his time, talent and vision, which have been essential to delivering extraordinary shareholder returns," Denholm wrote in a letter to shareholders on Monday.
Tesla's board is urging shareholders to approve Elon Musk's $1 trillion pay package. It's not the first time the board has asked them to back a package, but the strategy is somewhat different.