Tesla Crash Coming? Bearish Analyst Predicts 5% Stock Tumble If Musk’s Pay Plan Is Voted Down — But Sees A Silver Lining
A Tesla, Inc. (NASDAQ:TSLA) analyst predicts a potential 5% drop in the stock price if shareholders vote down CEO Elon Musk‘s controversial $56 billion pay package.
What Happened: Toni Sacconaghi, an analyst at Bernstein with an “Underperform” rating on Tesla shares, believes passing the proposal will be difficult, Business Insider reported.
“I think it’s going to be tough to pass. The math is relatively straightforward. You have to get a majority of votes of shareholders that vote, and part of the challenge for Tesla is that not everyone votes,” Sacconaghi told CNBC, as per the report.
He cited low historical voter turnout (63% maximum) and the influence of proxy advisory firms ISS and Glass Lewis, who both recommend rejecting the plan.
Sacconaghi anticipates a significant number of passive investors, who comprise roughly 20% of Tesla’s shareholder base, will follow the proxy firms’ advice. This could lead …
Full story available on Benzinga.com
