- Tesla shareholders approved Elon Musk's $55 billion compensation package and the company's relocation to Texas.
- Wedbush analyst Dan Ives called the results a “champagne pop-up moment” for Tesla investors.
- Ives added that if the proposal “didn't work out”, “bad things” could have happened.
At least one analyst is very optimistic about the outcome of Tesla's shareholder vote.
Wedbush Securities analyst Dan Ives said in a note Thursday that Tesla Chief Executive Elon Musk's victory is a “champagne pop-up moment” for investors. Ives predicted the much-hyped vote results would lift a $20 to $25 weight off the electric-vehicle maker's shares.
Tesla's vote focused on two main issues: the company's relocation from Delaware to Texas and approval of a $55 billion compensation package that was widely seen as a referendum on Musk's leadership.
“Had this proposal failed, many bad things and scenarios could have happened, including putting Musk on the path to stepping down as CEO of Tesla,” Tesla bull Ives wrote in the note. “Instead, it's roses and rainbows in Austin today.”
Ives' comments about the risk of Musk leaving Tesla come amid growing concerns that the end of his compensation package could cause Musk to gradually lose interest in the electric vehicle giant and turn his attention to other business ventures.
In January, Tesla's CEO threatened to curtail AI development if the company couldn't at least get it under control. 25% of the votes.
Meanwhile, Ives rates the stock an “outperform” and has a price target of $275, which would represent a 45% upside from current levels. Analyst consensus has the stock priced at around $173.
Despite his positive comments, Ives also spoke about a headwind for Tesla: slowing demand.
In April, amid shaky demand for EVs in general and tough competition from Chinese rivals, Tesla reported its lowest quarterly deliveries since 2022 and missed analysts' expectations by the most to date.
That same month, the company announced it would slash prices of existing cars and produce cheaper vehicles to stimulate demand.
“We believe the picture will be more negative in the coming weeks due to downside delivery risks,” Guggenheim analyst Ronald Jusikow wrote in a separate note on Thursday.
