Tesla Inc. (NASDAQ:TSLA) bull and Wedbush Securities' analyst Dan Ives, as well as Future Fund LLC's managing director, Gary Black, have weighed in on Elon Musk's new $29 billion pay package, reacting positively to the news.
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Dan Ives Says New Compensation Resolves Delaware ‘Soap Opera’
Taking to social media platform X on Monday, following the news, Ives hailed the move. "Tesla Board comp package to Musk removes an overhang," he said, adding that the new package solidifies Musk's position as CEO of Tesla, "at least until 2030."
He also added that the move removes some of the overhang on company stock posed by the Delaware "soap opera," referring to the court ruling last year, which overruled Musk's initial compensation package.
Gary Black Calls The Move Favorable For TSLA Stock
The investor also took to X following the news, sharing that the move by the board "should be viewed very favorably for Tesla as it removes an overhang on Tesla stock," he said.
He added that the new package aligns Musk's compensation with the shareholders' view.
Amid Dwindling Sales, Tesla Awards 96 Million Shares To Elon Musk
The new package awards 96 million shares to Elon Musk as compensation, totaling over $29 billion in value, a steep decline from the earlier $56 billion package previously approved by the EV giant's board of directors.
The new package comes in as Musk's automaker has been grappling with poor sales figures across various regions. Tesla's California sales fell over 21% while the company also experienced sharp declines in Sweden, France and Denmark.
Tesla Expands Ride-Hailing Service Into New Cities Amid Criticism
Tesla recently announced it was expanding its ride-hailing service to the San Francisco Bay Area, serving an area that is larger than what its competitor Alphabet Inc.'s (NASDAQ:GOOGL) (NASDAQ:GOOG) Waymo does.
Interestingly, the company didn't mention the word Robotaxi in the announcement, as there will be a safety driver present in the cab at all times. This move has invited criticism from experts like Gerber-Kawasaki's co-founder, Ross Gerber, who called it "an oxymoron."
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