Shareholder approval for Musk's pay package 'removes $25 overhang on Tesla stock'

Tesla Inc (NASDAQ: TSLA) is pushing to the upside this morning after shareholders voted in favour of a $56 billion pay package for chief executive Elon Musk. 

What Musk's pay package approval means for Tesla stock

“Thanks for your support!!,” is what the billionaire wrote on X.com on Thursday - adding that his pay package was approved by a wide margin. 

Backing from his investors this morning removes a significant headwind from $TSLA, as per a senior Wedbush Securities analyst Dan Ives. 

Ives’ outperform rating on Tesla stock comes with a price target of $275 that translates to about a 50% upside from here. 

Billionaire Elon Musk still faces an uphill legal battle

Shareholder approval does not put an end to the legal battle for Elon Musk. He still needs to convince the courts before today’s vote goes into effect. 

Plus, there’s always a possibility of new lawsuits emerging following the development on Thursday. Still, Dan Ives of Wedbush Securities told clients in a research note this morning:

Tesla stock is still down some 25% versus the start of 2024. 

$TSLA could fail to top $350 valuation this decade

The news arrives only a day after Ark Invest of influential investor Cathie Wood said Tesla share price could hit $2,600 by the end of 2029 only if its robotaxi push comes to fruition. Without it, the investment firm warned, the EV stock could remain capped at $350 only over the same period, as Invezz reported here.

$TSLA is scheduled to report its financial results for the second quarter in mid-July. Consensus is for it to earn 47 cents a share - down significantly from 78 cents per share in the same quarter last year.

In April, the electric vehicles behemoth said it will reveal its robotaxi in early August. But there remains at least some uncertainty considering Tesla Inc has a history of delayed product roll outs.

Wall Street currently has a consensus "hold" rating on Tesla stock that does not pay a dividend at writing.