Future Fund Managing Partner Gary Black believes Tesla Inc (NASDAQ:TSLA) CEO Elon Musk's 2018 compensation package will likely be overwhelmingly approved by shareholders in the upcoming annual meeting, rendering a "huge positive" to the company.
What Happened: Black is of the opinion that the annual shareholder meeting expected to be held on June 13, 2024, at 3:30 p.m. Central Time (CT) will be the next "major catalyst" for the company.
Once Musk's rescinded 2018 compensation package is restored by the vote of shareholders, it would eliminate the possibility of the CEO leaving, thereby rendering a "huge positive" for the company, he said in a post on social media platform X, formerly Twitter.
Currently, while Tesla continues to ramp efforts and achievements in the direction of autonomous driving, earnings estimates are low owing to price cuts and falling delivery estimates, he said. Black holds a price target of $200 for Tesla.
$TSLA on the other hand, continues to make great strides in FSD and autonomous driving, but earnings estimates keep falling because of price cuts and now ironically falling delivery estimates (usually price cuts increase volumes). The next major catalyst is the June 13th annual... pic.twitter.com/lgTW204Ygz
— Gary Black (@garyblack00) May 17, 2024
Why It Matters: Black is not the only one looking forward to the meeting. In a note earlier this month, Morgan Stanley analyst Adam Jonas said that the upcoming meeting will drive material volatility in the stock and determine the company's long-term strategic direction.
Musk's 2018 pay package was rescinded by a Delaware court earlier this year after deeming it an "unfathomable sum." The stock-based pay package was worth $56 billion at the time of award.
Tesla's board is trying to have it reinstated by a shareholder vote yet again in June, including by investing in advertisements to the effect.
Price Action: Tesla shares closed 1.5% higher on Friday at $177.46, according to Benzinga Pro.
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