Wedbush now expects the Tesla CEO’s commitment to the company for the next three to five years. (Photo: 123RF)
What to do with Tesla stocks, AtkinsRéalis and Alithya? Here are some analyst recommendations likely to move prices soon. Note: the author may have a completely different opinion than that expressed by the analysts.
Tesla (TSLA, US$177.29): the debate on Musk’s compensation is over
Elon Musk will be able to pop the champagne. Tesla shareholders approved its generous compensation plan, which had been the subject of strong opposition since its presentation in 2028.
The CEO of Tesla himself made the announcement on his X account, saying that the proposal had finally been accepted, underlines Wedbush analyst Daniel Ives. Just like the one confirming the move of the company registration from Delaware to Texas.
In the analyst’s opinion, these two approvals should remove a reduction of US$20 to US$25 per share that had been hanging over the stock since the judgment of a Delaware court in January, which overturned the compensation dedicated to Elon Musk.
Daniel Ives believes that the positive shareholder response is the decision of the vast majority of institutional shareholders to vote “yes”, even though some had publicly indicated that they would oppose it.
He adds that during his discussions in recent months, major shareholders have suggested to him that a “no” vote would put Elon Musk’s presence at Tesla at risk, a greater risk than accepting his compensation. even if it leaves a feeling of frustration in many.
The analyst expects the CEO to commit to Tesla for the next three to five years, just like the artificial intelligence file, vehicles priced at less than US$30,000 and self-driving cars.
Daniel Ives believes that the resolution of Elon Musk’s compensation crisis has avoided the worst for the company even if it still faces problems with demand, releases of new models and others.
Wedbush reiterates its forecast of outperformance of Tesla shares compared to its sector of activity as well as its target price of US$275.
AtkinsRéalis (ATRL, $54.79): targets for 2027 are revealed
