Tesla Bulls Gary Black, Dan Ives Optimistic Elon Musk And Board Will 'Ultimately' Resolve Voting Rights, Compensation Issues

Tesla Inc TSLA bulls are optimistic about a speedy resolution to CEO Elon Musk‘s request for a new compensation package and 25% voting rights at the company.

What Happened: Musk took to X on Monday evening and said that he would be uncomfortable growing AI/robotics at Tesla without at least 25% voting control. Without it, the CEO said, he would prefer to build products outside of Tesla.

The 25% voting rights, Musk said, would ensure that he has enough to be influential but not so much that he cannot be overridden. At below 15% stake his decisions are easily overridden, the CEO added.

Musk currently owns over 411 million Tesla shares, putting his stake at about 13%.

Bulls’ Take: Future Fund Managing Partner Gary Black noted that Tesla bears and critics are hyping Musk’s demand more than necessary as there is still plenty of time for the board and the CEO to come up with a new compensation plan that ‘properly aligns incentives.’ A share buyback would also get Musk closer to 25% ownership, the analyst noted.

Wedbush analyst Dan Ives, likewise, is optimistic about a resolution.

“Per Musk comments the AI story at Tesla is still very much under appreciated by the Street in our view. The point Musk is making with his 25% ownership comments is around future AI projects at Tesla or outside Tesla,” Ives wrote on X.

Ives has often noted that Tesla is more an AI company than a traditional car maker. The analyst sees the EV maker touching the $1 trillion market cap in 2024 amidst the ongoing AI revolution.

Musk too had noted in his post that the Tesla Board is merely waiting for a decision in his Delaware compensation case before charting out his compensation plan. The lawsuit filed by shareholder Richard Tornetta alleges that Musk used his dominance over the board in 2018 to get himself an excessive package.

Photo: Courtesy of Wikimedia.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read More: Tesla CEO Elon Musk Says A New Compensation Package With High Targets ‘Would Be Nice’

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorNewsTechDan Iveselectric vehiclesElon MuskEVsGary Blackmobility
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!