Tesla Crash Coming? Bearish Analyst Predicts 5% Stock Tumble If Musk's Pay Plan Is Voted Down — But Sees A Silver Lining
Portfolio Pulse from Shanthi Rexaline
A Tesla analyst predicts a potential 5% drop in Tesla's stock price if shareholders vote down Elon Musk's $56 billion pay package. The analyst, Toni Sacconaghi from Bernstein, cites low voter turnout and proxy advisory firms' recommendations as key factors. Despite the potential drop, a failed proposal could boost earnings per share by 10%. Prominent investors like Ron Baron and Cathie Wood support the proposal, while retail investors are also largely in favor.
June 11, 2024 | 9:21 am
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Analyst Toni Sacconaghi predicts a 5% drop in Tesla's stock price if Elon Musk's $56 billion pay package is voted down. However, a failed proposal could boost earnings per share by 10%.
The analyst's prediction of a 5% drop is based on historical voter turnout and the influence of proxy advisory firms recommending against the pay package. However, the potential boost in earnings per share if the proposal fails provides a silver lining.
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