Shareholders show how much Elon Musk means to Tesla
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The runaway victory for Elon Musk in the vote on his pay package is further proof that Tesla shareholders have his back as he pursues eye-popping financial targets.
Why it matters: If shareholders had refused to endorse his pay package — initially worth $56 billion — some feared Musk could've pursued his ambitions elsewhere.
What they're saying: "We think the news takes a potentially disastrous scenario off the table, in which Musk could have potentially left Tesla, triggering a possible 'brain drain' of top talent, which would have massive implications for the future of the company," CFRA Research analyst Garrett Nelson said in a research note.
State of play: Visibly elated following the vote, Musk offered a series of what Bloomberg called "outlandish predictions" about Tesla's future, based in large part on self-driving cars and humanoid robots.
- He said Tesla could one day be worth more than 10 times the amount of today's most valuable companies.
- And he said Tesla's Optimus robot project could ultimately make $1 trillion in profit annually.
- "Now admittedly, I'm a little optimistic sometimes," he said to laughter. "You know, I don't have a complete lack of self-awareness."
Reality check: Tesla's stock has long benefitted from a so-called "Musk premium," fueled by shareholders' belief in the CEO.
- But the stock is down more than 56% from its late 2021 peak, as the actual business of selling EVs has proven more challenging.
- And despite an initial 8% pop yesterday when Musk said Tesla shareholders had approved his pay package, shares closed today nearly flat to where they were before the vote.
The bottom line: Tesla shareholders just declared they're along for the ride.
