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Investing.com - Cantor Fitzgerald has reiterated its Overweight rating on Tesla (NASDAQ:TSLA) with a price target of $355.00, according to a research note published Monday. The target sits close to Tesla’s current trading price of $350.84, though InvestingPro analysis suggests the stock is trading above its Fair Value. Tesla maintains strong financial health with a "GOOD" overall rating, despite trading at a demanding P/E ratio of 191.1.
The research firm commented on Tesla’s board proposal for a new 10-year compensation plan for CEO Elon Musk that could potentially be worth up to $1 trillion, contingent on meeting specific performance goals. The package ties Musk’s compensation to market capitalization milestones, requiring Tesla to reach an $8.5 trillion valuation compared to its current market cap of $1.13 trillion. InvestingPro data reveals Tesla’s impressive annual revenue of $92.72 billion, though its gross profit margin stands at a modest 17.48%.
For Musk to receive the full compensation package, he must remain at Tesla for at least 7.5 years, and 10 years to earn the complete amount. The CEO must also meet operational milestones including overseeing the commercial deployment of 1 million autonomous taxis and the deployment of 1 million robots, according to Bloomberg.
If all targets are achieved, Musk would gain up to 12% additional ownership in Tesla. Cantor Fitzgerald views the compensation package as the board’s strategy to keep Musk focused on leading Tesla’s business transformation from electric vehicles toward robotics and artificial intelligence.
Separately, Tesla announced the launch of its robotaxi app for the general public on September 4.
In other recent news, Tesla has unveiled a new compensation package for CEO Elon Musk, which features ambitious targets across all business segments. This package could result in a $1 trillion bonus if the targets are met. Alongside this, Tesla’s Board of Directors has updated indemnification agreements for its directors and executive officers, ensuring legal protection and expense coverage under Texas law. Analyst firms have weighed in on these developments, with Baird maintaining a Neutral rating and a $320 price target for Tesla, while Stifel reiterated a Buy rating with a $440 price target. William Blair continues to rate Tesla at Market Perform, noting the long-term commitment indicated by Musk’s new incentive plan. Wedbush has upheld its Outperform rating and $500 price target, emphasizing Musk’s commitment to stay with Tesla through 2030. These recent updates reflect significant strategic moves within Tesla’s leadership and governance.
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