'Jaw Dropper:' Tesla Analysts, Investors Unpack Fallout From CEO's $55B Pay Plan Collapse While Musk Laments 'Parasitic Load' Of Being A Public Company
Portfolio Pulse from Shanthi Rexaline
Delaware Chancery Court Chief Judge Kathleen McCormick struck down Tesla CEO Elon Musk's $55 billion 2018 compensation plan, causing uncertainty among analysts and investors. The decision could lead to an appeal or a new compensation package. Analysts like Gary Black and Daniel Ives commented on the potential impacts, while Musk suggested Tesla might change its incorporation to Texas. Tesla's stock fell 3.35% in premarket trading following the news.
January 31, 2024 | 10:17 am
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Tesla's CEO Elon Musk's $55 billion compensation plan was struck down by the court, leading to a 3.35% drop in premarket trading and raising concerns about the company's future direction and leadership.
The court's decision to strike down Musk's compensation plan introduces significant uncertainty regarding Tesla's leadership and future direction, which is likely to negatively impact investor sentiment and the stock price in the short term. The premarket trading already reflects a negative investor reaction.
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