On Friday, in an appearance on CNBC’s Squawk Box, Bernstein analyst Toni Sacconaghi shared his insights on the future of Tesla Inc. (NASDAQ:TSLA) and the implications of CEO Elon Musk’s newly approved pay package.
What Happened: Sacconaghi views the approval of Musk’s pay package as a positive development for Tesla’s stock, noting a “relief rally” following the preliminary announcement of the package’s approval.
He said, BlackRock and Vanguard, who hold 13% of the votes, broke rank with the proxy voting recommendation to vote no, resulting in a 26-point swing out of about 75% of the share base that voted, tilting the vote in favor of the package.
Despite this, Sacconaghi maintains an underperform rating on Tesla with a $120 price target. He believes that Tesla’s unit growth will be down this year and that any attempt to grow units will ...