Wedbush strongly supports Tesla: The board should quickly establish basic rules for the "soul figure" Jack Ma
Wedbush Securities analyst Dan Ives suggested that Tesla's board should quickly establish basic rules regarding CEO Elon Musk's future political ambitions. He believes that Musk needs to remain CEO for the next five years and recommends creating a new incentive compensation plan for him, increasing his voting power to 25%. The board could establish a special committee to oversee Musk's actions, ensuring that he does not interfere with CEO responsibilities. Wedbush maintains Tesla's "outperform" rating, with a target price of $500
According to the Zhitong Finance APP, Wedbush Securities analyst Dan Ives believes that the Tesla (TSLA.US) board needs to act quickly to establish basic rules regarding CEO Elon Musk's future political ambitions and related behaviors. Ives emphasized that Tesla will need Musk to serve as CEO for at least the next five years, as he plays a key role in Tesla's autonomous driving and robotics business layout.
Ives and his team suggest creating a new incentive-based compensation plan for Musk that raises his voting power at Tesla to about 25%. The board could establish a special committee to develop relevant strategies and proxy voting materials to be voted on by Tesla shareholders at the next annual meeting. He added, "This will also solidify Musk's position as Tesla's CEO for the next several years, and we expect him to remain in the role at least until 2030."
Under Ives' proposal, Musk's new compensation plan should clearly outline the time commitment required for Tesla operations and several basic rules, while also establishing a special oversight committee of the board to determine whether Musk has violated the terms of the compensation plan. In short, the Tesla board cannot interfere with Musk's donation activities but can oversee whether his political ambitions and related activities interfere with the performance of his CEO duties.
Wedbush maintains an "outperform" rating on Tesla, with a target price of $500. Ives wrote, "We believe Tesla and NVIDIA are the two leading entities in global artificial intelligence, and Musk will be the core driving force behind Tesla's success—just in the autonomous driving business alone, we estimate it brings a $1 trillion growth opportunity for Tesla."
As of the time of publication, Tesla's stock price rose 1.16% in pre-market trading on Tuesday, after falling 6.8% in the previous trading session (Monday)
