Tesla shareholders are set to vote on Elon Musk's $1 trillion pay plan on November 6. Proxy firms have criticized the massive pay package, leading Musk to brand them "corporate terrorists.
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Tesla is looking at internal CEO candidates if Elon Musk leaves in case the $1 trillion pay plan is not passed at the annual shareholder meeting next week, Bloomberg News reported on Tuesday, citing the automaker's board chair.
Tesla, Inc.'s $1T CEO compensation plan, if approved, removes a major "Elon Musk might leave" overhang. I believe the CEO is what sustains Tesla's premium and, if cleared, a relief rally is likely. If the plan fails, Elon could leave Tesla. In that scenario, I see TSLA stock rerating toward auto peers, with a 90% downside at 35x next-year P/E. Fundamentals aren't the bull driver. Energy storage...
Tesla uses profits from its vehicle sales to fund its robotics and autonomous driving R&D. Despite record quarterly revenue, Tesla's margins are low and likely to get even lower.
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