Not so long ago, electric vehicle stock Tesla (NASDAQ:TSLA) voted on a pay package for CEO Elon Musk. Perhaps recognizing the fact that he was largely responsible for sending their shares on a rocket to the moon, they voted him a hefty pay package – until the court system stepped in and declared the pay package void. Now, shareholders are coming back to vote once more, and Tesla shares are down modestly in Wednesday afternoon’s trading.
There was no doubt that Musk’s pay package was massive by any objective standard. In one fell swoop, Musk would’ve been paid $56 billion, or about $2 billion less than the entire Democratic Republic of the Congo made in 2022. It was the largest corporate pay package ever seen, and the number was sufficiently large as to make a Delaware judge choke on it. The judge then declared the package illegal and “deeply flawed.”
Will They Change Their Minds?
Granted, Tesla is in something of a different position these days. We’re seeing declines in demand for electric vehicles crop up all over, and Tesla is no different. Plus, Tesla revealed that it’s having issues with the delivery schedules for the new Cybertruck line, which may further impact revenue. And with the Model 3/robotaxi concept proving another issue, who’s to say if shareholders will agree to a gigantic payday for Musk?
Is Tesla a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on eight Buys, 19 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 15.63% loss in its share price over the past year, the average TSLA price target of $184.86 per share implies 18.6% upside potential.
Is It Wise to Allocate $1,000 Toward TSLA Stock Right Now?
Before you hurry to invest in TSLA, think about the following:
TipRanks’ team has built the Top Stocks Portfolio for investors, and Tesla is not included. Our portfolio highlights companies that have been hand-picked for their potential to deliver significant gains in the years ahead.
