Tesla ( (TSLA) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Tesla has unveiled a groundbreaking compensation package for its CEO, Elon Musk, which could see him earn up to $1 trillion over the next decade. This package is contingent on Musk achieving ambitious milestones, including expanding Tesla’s market capitalization to $8.5 trillion and overseeing the sale of millions of cars, robotaxis, and AI-powered robots. The plan aims to retain Musk’s leadership and aligns his interests with those of shareholders, potentially granting him 25% ownership of the company. Despite the impressive targets, the package has sparked debate among analysts, with some questioning the appropriateness of such a large compensation and its implications for corporate governance.
The announcement comes at a time when Tesla is facing increased competition in the electric vehicle market, particularly from Chinese manufacturers, and is dealing with challenges in sales and reputation. Analysts remain divided on Tesla’s stock, with a consensus ‘Hold’ rating and a 12-month price target of $309, suggesting a downside risk. The company’s recent decision to terminate its Dojo supercomputer project has also raised concerns about its robotaxi ambitions, with some investors questioning Tesla’s ability to maintain its innovative edge without this technology.