:max_bytes(150000):strip_icc()/GettyImages-2185183787-fb9382b075474840a79810fd7524bf3b.jpg?w=1500&resize=1500,1000&ssl=1 "Tesla Stock Hits a Speed Bump as Judge Rules Against Musk’s Pay Deal | Global News Avenue")
Tesla Stock Hits a Speed Bump as Judge Rules Against Musk’s Pay Deal
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Main points
- Tesla shares have retreated from multi-year highs after a judge ruled for the second time that the electric carmaker’s CEO Elon Musk’s compensation package was invalid.
- The company said it would appeal the decision.
- Tesla shares have been rising since the election of Donald Trump on optimism that Trump’s policies and his close relationship with Musk will benefit the automaker.
Tesla (Tesla) shares gave up some of their recent gains after a Delaware judge blocked the CEO’s multibillion-dollar pay package for the second time Elon Musk.
Principal Katherine McCormick persist in Her earlier decision sided with shareholders who sued to block a deal with Musk that earlier valued the company at $56 billion. Tesla shareholders overwhelmingly voted Compensation for Musk was reinstated in June, with the company saying on social media platform X that the decision was a mistake and “we will appeal.”
The news paused recent gains in Tesla shares, which have surged since the presidential election and hit a more than two-and-a-half-year high yesterday. The stock was boosted by expectations that President-elect Trump will loosen regulations and end federal tax incentives for electric vehicle purchases, which could benefit Tesla.
“Musk is Tesla and Tesla is Musk,” wrote Wedbush analyst Dan Ives, who is bullish on Tesla. “The board will provide Musk with a compensation package (and another long-term compensation package for the next decade) in a way that ensures Musk remains CEO of Tesla until at least 2030.”
Tesla shares are up about 46% so far this year. The stock has fallen about 2% recently.
trading view
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