At a special meeting in Fremont, California on Wednesday Tesla Incs (TSLA) shareholders voted in favor of a compensation plan, worth $2.6 billion, for the companys Chief Executive Officer, Elon Musk.
Tesla shares closed higher for the first time in the past seven trading sessions on Wednesday. The stock went up 1.93% ($5.98) to $316.53, after touching an intraday high at $322.44, or a price level not seen since March 16th ($327.40).
In the week ended on March 18th the shares of the luxury electric vehicle manufacturer lost 1.78% of their market value compared to a week ago, which marked a third consecutive period of decrease.
However, due to yesterdays gain, the stock has trimmed its loss to 7.73% so far during the current month, following a 3.18% slump in February. The latter has been the fourth drop out of six months.
For the entire past year, the shares of the NASDAQ-listed electric car maker rose 45.70% following a 10.97% slump in 2016.
No salary or cash bonus are included in the proposed compensation award. However, rewards are set depending on Tesla Inc’s market capitalization reaching up to $650 billion over the next decade.
CEO Musk could own almost $56 billion in the companys stock (more than 25% stake) during the upcoming 10 years, in case all objectives of the new plan are accomplished.
According to Reuters, the shareholders approval of the compensation package was confirmed by a Tesla spokesperson. However, the number of votes in favor and votes against remained undisclosed.
The same media also said that earlier in March, Institutional Shareholder Services, a proxy advisory company, had recommended that shareholders do not support the compensation plan, as the “unprecedented” award was too generous.
At the same time, the 59th largest investor in Tesla Inc with a stake of 0.13%, the California State Teachers’ Retirement System, had said it would vote against the award.
On the other hand, the 4th largest investor in Tesla with a stake of almost 6%, T. Rowe Price Group, said it considered the pay plan as being “well aligned with shareholders’ long-term interests”.
According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $310.00, with a high estimate of $500.00 and a low estimate of $170.00. The median estimate is a 2.06% decrease compared to the closing price of $316.53 on March 21st.
The same media also reported that 9 out of 28 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while other 9 – as “Buy”. On the other hand, 7 analysts had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Tesla stock are presented as follows:
R1 – $317.65
R2 – $318.78
R3 (Range Resistance – Sell) – $319.90
R4 (Long Breakout) – $323.27
R5 (Breakout Target 1) – $327.20
R6 (Breakout Target 2) – $329.03
S1 – $315.41
S2 – $314.28
S3 (Range Support – Buy) – $313.16
S4 (Short Breakout) – $309.79
S5 (Breakout Target 1) – $305.86
S6 (Breakout Target 2) – $304.03
By using the traditional method of calculation, the weekly levels of importance for Tesla Inc (TSLA) are presented as follows:
Central Pivot Point – $329.21
R1 – $339.35
R2 – $357.35
R3 – $367.49
R4 – $377.63
S1 – $311.21
S2 – $301.07
S3 – $283.07
S4 – $265.07
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