tl;dr
Morgan Stanley believes that Tesla's annual shareholder meeting on June 13 could introduce additional drama for investors. Analyst Adam Jonas highlighted the lack of control or a blocking minority vote for Elon Musk in Tesla, especially concerning his discomfort with advancing Tesla's AI capabilitie...
Morgan Stanley believes that Tesla's annual shareholder meeting on June 13 could introduce additional drama for investors. Analyst Adam Jonas highlighted the lack of control or a blocking minority vote for Elon Musk in Tesla, especially concerning his discomfort with advancing Tesla's AI capabilities without sufficient voting control. This issue is expected to impact the shareholder vote on Musk's 2018 compensation package, potentially limiting Tesla's AI potential and affecting investor confidence. Morgan Stanley anticipates that as long as the voting control matter remains unresolved, Tesla's share price will be influenced more by developments in the global EV industry rather than benefiting from an AI premium. As of February 2024, Elon Musk owns approximately 20.5% of Tesla, including options from the 2018 award. Excluding the options, his outright ownership is around 13%. The uncertainty surrounding Musk's voting control raises questions for investors regarding the potential consequences after the shareholder meeting. In other news, Elon Musk confirmed that Tesla intends to invest over $500 million in expanding the Supercharger network for electric vehicles, countering previous reports about a possible shutdown of this business unit. Musk emphasized the company's commitment to growing the Supercharger network, albeit at a slower pace for new locations, with a strong focus on uptime and expanding existing locations. Ahead of the news, Tesla's shares rose by 0.78% in premarket trading on Friday.
More about Tesla Inc
Company: Tesla Inc
Industry: Manufacturing, Motor Vehicles & Passenger Car Bodies
Revenue: $548,446,700,000
Current Stock Price: $44.09
Dividend Yield: None
P/E Ratio: 3.9
Market Cap: $947,450,020,000
Stock Price Change (1 year): 167.34
EPS: -0.534
ROE: -0.087
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