Wedbush says new Musk incentive package ‘smart move’ by board

Wedbush says Tesla’s (TSLA) board asked shareholders to approve a long-term incentive package for Elon Musk to retain and motivate him to remain CEO. The new performance award challenges Musk to reach a higher bar across multiple aspects of the business including new adjusted EBITDA and the rollout of new products, including 1M robotaxis in commercial operations and 1M Optimus robot deliveries, the analyst tells investors in a research note. Wedbush adds that the package would also provide an additional 423M shares of common stock for Musk, which would increase his ownership of Tesla up to 25% voting power. The firm views the package as a “smart move” by the board sine Musk is the “biggest asset” for Tesla at a crucial time for the company with autonomous and robotics “front and center.” Wedbush keeps an Outperform rating on Tesla with a $500 price target The stock in premarket trading is up 3% to $347.68.