Ives said the board’s action addresses some of the “comp soap opera” that has clouded Tesla’s outlook and clears a path for renewed investor focus on growth.
Wedbush analyst Dan Ives said on Monday that the Tesla board’s approval of Elon Musk’s pay package has removed an “overhang.”
According to him, the board’s decision on Musk’s interim award likely cements his role as CEO through at least 2030. He noted that the move helps resolve uncertainty stemming from a Delaware court challenge to Musk’s compensation, which has weighed on the stock.
Ives said the board’s action addresses some of the “comp soap opera” that has clouded Tesla’s outlook and clears a path for renewed investor focus on growth.
Tesla’s stock rose more than 2% in pre-market trade on Monday. On Stocktwits, retail sentiment around the company dipped to ‘neutral’ from ‘bullish’ over the past day.
“…We are confident that this award will incentivize Elon to remain at Tesla and focus his unmatched leadership abilities on further creating shareholder value for Tesla shareholders and attracting and retaining talent at Tesla,” it added. “To be clear, losing Elon would not only mean the loss of his talents but also the loss of a leader who is a magnet for hiring and retaining talent at Tesla.”
The interim award approved by Tesla’s board of directors allotted 96 million restricted shares of stock to Musk, provided he stays on as CEO for at least two years. Musk is to pay the company $23.34 per share for the restricted stock that vests. The shares also have a mandatory holding period of five years from the grant date, except to cover tax payments or the purchase price.
Read also: Tesla Approves 96M Shares Of Restricted Stock To CEO Elon Musk
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